What are the consequences in case the society/ trust or the institution does not avail the registration under the Income Tax Act?

The income so received by way of voluntary contributions either to Corpus or otherwise shall be considered and the expenses so incurred shall be allowed to compute the taxable income.

The income so derived shall be assessed in the status of the Associations of persons. The taxability of this income is generally done at the maximum rates of tax.

The following benefits are lost in case of non registration of the society.

·         Setting apart up to 25% of the income so received during the year.

·         Accumulation of the funds even exceeding 25% of the income received for the specific purposes .

·         Losing the exemption of the voluntary contributions received towards the Corpus of the society.