It return for coop. society

manager

sir,
 i am from Delhi and concerned with a thrift and credit society  , and our income never exceeds above taxable limit after paying dividend to members. so we never filed any return etc. to IT deptt.- is that right or should we file return(as I heard that societies are exempeted)
further, we have received a letter from IT deptt. for the cash transaction in our bank a/c.
they enquired for our PAN number , which we will provide.
now , they asked us for any filing of return of income -as we never filed any, what should we reply, and what is the remedy.
i am not sure whether we are bound to file return or not.
please guide.

 
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Lawyer

there is no exemption from filng returns it should have been filed

 
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manager

what is the effect as we have not filed any retrurn, and they enquiring ,what os the penalty or any reference of act etc.,

thnx

 
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Lawyer

the penalty for non filing may range from Rs 5000 to Rs 10000.You can now file a belated return for the past two years.

 
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Advocate

Provisions for Taxation of a Cooperative Society

A Cooperative Society is a taxable entity under the Income Tax Act, 1961. A Cooperative Society under the Act is to be treated as an association of persons (AOP), which is included in the definition of 'person' under the Income Tax Act, 1961.

Even though, for taxation purposes, the status of a cooperative society is to be taken as an Association of Persons, the section 67A and section 86 of the Act have been excluded from application to the members of society.

A Cooperative Society is taxed at rates, which are different from those applicable to an AOP. Under the annual Finance Act , though individuals, Hindu undivided family, AOP or body of individuals, whether incorporated or not, or every artificial juridical person referred to in the Income Tax Act, are chargeable at rates prescribed in paragraph A, of the Finance act. A Cooperative society is chargeable to tax as per rates prescribed under paragraph B of Part1 of the first schedule to the annual Finance Act.

The amount of income tax computed in accordance with the provisions of paragraph B , shall in the case of every cooperative society, be increased by a surcharge. The rate of surcharge is prescribed in each of the Finance Acts.

The Cooperative Societies are entitled to several concessions, in the computation of their taxable income. Besides, they also enjoy the benefit of concessional rate of tax on their chargeable income under the annual Finance Act.

As per Wealth Tax Act [Section 3(1)], only individuals, Hindu undivided families and companies are liable to wealth tax. Thus, no wealth tax is charged in the case of cooperative society.

 
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Is the interest and dividend earned as member of Thrift and credi society?

 
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