Query – tax implication in case of trust/society

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2014 A School is running under the aegis of An Education Society which is registered u/s 12A. The School is having its separate PAN in School Name. For the FY 2010-11, Total Receipts of school was around Rs. 5 Cr. and excess of Income over expenditure was Rs. 50 Lacs.
Now Pls Suggest
1. What are the tax implications in the case of School
2. Whether it is compulsory to file ITR by the school and what about tax exemption.
Once again I want to attract your attention on my point that Registration u/s 12A is only for society and the school is working under the society.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 February 2014 1. To claim exemption u/s 11, the society has to spend at least 85% of the gross receipts.

2. Since the Society has expended 90% of the receipts, it is eligible for exemption u/s 11.

3. The excess of Rs. 50 lakhs is exempt u/s 11 and is NOT taxable.