There is always a perception that cooperative societies are not required to File Income Tax returns as they are not directly or indirectly involved in any kind of commercial activities. However, this is not true, as society is a legal entity that is separate from its members, and therefore, it has to comply with various legal laws, including income tax laws.

 

Deductions under Section 80P of the Income Tax Act

Section 80P of the Income Tax Act offers tax deductions for cooperative societies. According to this act, specific activities are considered a deduction and if incomes from such activities are included in the gross total income of the society, then they are liable to file Income Tax Return. The following activities are mainly:
 

  • Business of Banking and Credit Facilities
  • Marketing and Processing of agriculture products grown by any member
  • Involved in the business process of dairy and perishable items by any member

 

The income sources of these societies are:
 

  • Contribution from members and non-members
  • Interest that is charged on defaults
  • Interest or Dividends on investments
  • Interest on fixed deposits
  • Rent from open spaces
  • Non-occupancy charges
  • Income through parking charges
     

Due Date for filing ITR

30th September as under the provision of respective society laws, its accounts are required to be audited. However, it can be filed by March 31st but the penalty will be included.
 

How can we help you with the smooth Society Income Tax Filing Process?
 

First, we seamlessly process and verify your data for the collection then prepare it in the proper structure as per the stated requirements, then if required we assist you in carrying out the income tax audit under the guidance of experts to ensure that you comply with IT policies.
 

We make sure that you are aware of every step to maintain data transparency as well as security. To save your time as well as efforts, we at Muneembhai accomplish the complete process on your behalf.
 

Our service structure features end-to-end fulfillment under the guidance of our expert.

 

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