REQUIREMENT OF PAN NO. FOR CO-OPERATIVE SOCIETIES

REQUIREMENT OF PAN NO. FOR CO-OPERATIVE SOCIETIES

It is a perception that income of Co–operative Societies is not chargeable to tax and therefore many societies do not bother to take PAN No. & file Income Tax returns. This is a wrong perception since though certain types of income of CHS are exempt there are other incomes which are chargeable to Tax.

Some incomes of a Co–operative Society like rent from non members, interest on investments in some cases etc. are taxable.

The societies are taxed as per the following slab:

Income upto   Rs 10000                                     10 %

Income upto   Rs 20000                                     20 %

Above 20000/-                                                  30 %

The income tax as arrived above has to be increased by 3 % of tax payable towards Education Cess and Higher education Cess.

So in my view a Co–operative Society should take PAN No. and file Income Tax Return regularly after claiming permitted deductions. In cases where no taxable income is there, filing tax return is advised so as to prove exemption of income, whatsoever.

Brijesh Baranwal

Practicing Chartered Accountant

Note:

1. The above write up is only for awareness purpose and should not be considered as expert opinion.

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