service image


Tax compliance for societies, often referred to as non-profit organizations or NGOs, involves specific regulations and requirements.

Here are the key details on society firm tax compliance:

Tax Exemption:

In many jurisdictions, societies that operate for charitable, religious, educational, or other socially beneficial purposes may be eligible for tax-exempt status. This means they are not subject to income tax on the funds they receive for their charitable activities.

Tax Deductibility of Donations:

Donations made to registered societies may be eligible for tax deductions or exemptions for the donors. This encourages individuals and businesses to contribute to the society's charitable endeavors.

Tax Identification Number (TIN):

Societies need to obtain a Tax Identification Number (TIN) or Permanent Account Number (PAN) from the tax authorities. This unique identifier is used in all tax-related transactions.

Goods and Services Tax (GST):

Societies may be liable to pay GST on the goods and services they provide if their turnover exceeds the prescribed threshold. However, certain activities conducted by societies may be exempt from GST.

Tax Deduction at Source (TDS):

Societies may be required to deduct TDS on payments made to vendors, contractors, or professionals as per the provisions of the Income Tax Act. They must deposit the deducted TDS with the government and file TDS returns.

Accounting Standards Compliance:

Societies must maintain proper books of accounts as per the prescribed accounting standards. Compliance with accounting standards ensures accurate financial reporting, which is essential for tax purposes.

Annual Compliance Filings:

Societies are typically required to file annual returns with the relevant regulatory authorities, disclosing details of their activities, finances, and governing body members. Failure to file annual returns can lead to penalties and legal consequences.

Consultation with Tax Professionals:

Given the complexities of tax laws and regulations, it's advisable for societies to seek the assistance of tax professionals or chartered accountants to ensure proper tax planning and compliance.

Use of Funds:

Societies must ensure that their funds are utilized solely for the purposes specified in their charter or memorandum of association. Misuse of funds can lead to adverse tax implications and legal consequences.

Compliance with Other Regulatory Authorities:

Apart from tax compliance, societies must also comply with various other regulatory requirements, such as those related to governance, fundraising, and reporting. Non-compliance can lead to penalties and loss of tax-exempt status.

Overall, societies must adhere to various tax compliance requirements to fulfill their obligations to the tax authorities and maintain their legal status as non-profit organizations. Keeping accurate records, staying updated with changes in tax laws, and seeking professional advice when necessary are crucial for smooth tax compliance for societies.

Documents required for obtaining Society

Tax Identification Number (TIN).

Goods and Services Tax (GST) Documents.

Tax Deduction at Source (TDS).

Registration Application Form.

Proof of Address.

Identification Proof of Members.

Bank Account Opening Documents.


Limited liability.

Tax Exemption.

Annual Compliance Filings.

Community engagement.

Comprehensive Guidance.