Regarding tax liability of Society formed for Charitable Purpose

[rajeevjain]

One society has been formed for promoting growth of Hydogen Energy in India. They are doing seminars and there is some excess at the year end, what is the tax-ability of this excess sum, the society is formed purely for charitable work ? Some persons who have contributed towards sponsorship fee have deducted tax at source. How the same can be claimed as refund ?


CA. Rajeev Jain

[shobha nagrani]

Sir,

Is that organisation registered u/s 12A? That is mandatory for claiming exemption u/s 11 of the Income-tax Act. The activity appears to be charitable as per section 2(15) "object of general public utility".

There are restrictions on how much of the funds have to be used for the activities of the trust and how much can be accumulated.

If you do comply, then it is a simple job of filing a Return Of Income in Form ITR-7 and claiming a refund of the TDS.

Regards,

Shobha

[rajeevjain]

no, it is not registered u/s 12A and already 2 years have passed, then what is the remedy.

[shobha nagrani]

Under the proviso to s. 12A, the CIT had the power in cases where the application for registration was made pre 1.6.2007, to condone the delay if there was sufficient cause. That power is not available u/s 12A(1)(b) for applications made after 1.6.2007.

I suggest you immediately make the application so that at least the future is secure. For the past, you can approach the CBDT u/s 119 asking for a condonation of delay.