Discover the tax implications for educational societies and trusts on our comprehensive website explained by the leading chartered accountants in Udaipur
An Society or Educational Trust registered with the sole objective for imparting education and do not do any work for profit, then it gets the benefit of exemption from tax under Section 10 (23C) in some cases.
An educational institution gets exemption from tax in the following cases:-
The entire income of these educational institutions is completely exempt from tax under section 10(23C)(iiiab).
The entire income of these institutions is also completely exempt from tax under section 10(23C)(iiiad).
Under this category income is exempt from tax under section 10(23C)(vi) subject fulfillment of conditions as under :-
4. Exemption under Section 11
If a society does not fall in the above three categories then the society can get the exemption under Section 11 subject to satisfaction of following conditions:- .
Mandatory return filing:-
Last date for submission of return –
Societies claiming exemption under section 10(23C)(iiiad) are required to submit the return by 31st July if its income is more than Rs 2.50 lakh.
Objective is not to earn profit –
Society, who intend to run the educational institution and does not have the objective to earn profit, then such society or educational institution should clearly mention in its constitution that it has been formed with the objective to not earn the profit. A company made under section 25 of Companies Act, 2013 can be formed with the objective to not earn profit.
Important forms related to trust
|10B and 10BB
|Statement to be submitted if 85% amount is not utilized
|Income Tax Return
|Application for provisional registration
|Application for renewal or permanent registration
|Certificate of issue of provisional registration
|Order to cancel registration
|Returns of donations received
|Certificate of Donation Received
Important dates related to trust or education society
|Date of submission of Form 10/9A
|Date of submission of Form 10B/10BB (Audit Report)
|Last date of submission of ITR-7
|Date of furnishing return for entities availing exemption under section 10(23C)(iiiad)/(iiiac)
|Submission of Form 10BD in respect of donations received
|Certificate of donation received to be continued in Form 10BE
Tax Rates and slabs for Trust or society
|Total Income (Rs)
|Up to Rs. 2,50,000
|Rs. 2,50,001- Rs. 5,00,000
|Rs. 5,00,001- Rs. 10,00,000
|Above Rs. 10,00,000
Hence, Get the lowdown on tax planning from the top and best C A in Udaipur for creation and formation of Charitable or religious’ trust or society.