Procedure for change of status in pan
This query is : Resolved
06 January 2016
Hello,
My client is a Co-operative Housing Society registered as "Trust". However we want to change the status to "AOP". The jurisdictional ward of the said ward denied authority to do the same on written application. Also PAN Correction form has no specific point for change in status of PAN. Is there any way out to change status from Trust to AOP other than cancelling the present PAN and applying for new one ? Please guide.
My client is a Co-operative Housing Society registered as "Trust". However we want to change the status to "AOP". The jurisdictional ward of the said ward denied authority to do the same on written application. Also PAN Correction form has no specific point for change in status of PAN. Is there any way out to change status from Trust to AOP other than cancelling the present PAN and applying for new one ? Please guide.
07 January 2016
my dear CA how you can change status from charity unless your surrender charity status to charity commissioner, after all you cannot have cake and eat it too.
09 January 2016
Sir,
The said Co-operative Housing Society is not having charitable purpose. It is a residential society but was registered as Trust when PAN was applied for. The main activity of the society is to collect maintenance charges from the society members for the purpose of fulfilling joint and common expenses of the society. Also No certificate from Charity Commissioner have been obtained. Under this scenario is it possible to change the status from Trust to AOP without cancelling the old PAN and applying for new one ?
The said Co-operative Housing Society is not having charitable purpose. It is a residential society but was registered as Trust when PAN was applied for. The main activity of the society is to collect maintenance charges from the society members for the purpose of fulfilling joint and common expenses of the society. Also No certificate from Charity Commissioner have been obtained. Under this scenario is it possible to change the status from Trust to AOP without cancelling the old PAN and applying for new one ?
10 August 2024
Changing the status of a PAN from "Trust" to "Association of Persons (AOP)" involves a few specific steps, as this requires a change in the categorization of the entity for tax purposes. Since the PAN correction form does not directly cater to status changes, and if the jurisdictional ward has denied the authority to make the change, here’s a detailed approach you can follow:
### Steps to Change PAN Status from Trust to AOP
1. **Understand the Legal Basis:**
- **Cooperative Housing Society:** As you mentioned, the society is a residential society and does not have charitable purposes. Typically, a cooperative housing society should be classified as an AOP rather than a Trust.
2. **Gather Supporting Documentation:**
- **Proof of Nature of Activity:** Collect documents demonstrating that the primary activity of the society is collecting maintenance charges for fulfilling common expenses and not for charitable purposes.
- **Society's Constitution or By-Laws:** Provide the society’s registration documents or by-laws that specify its purpose and nature of activities.
- **No Certificate from Charity Commissioner:** As no certificate from the Charity Commissioner has been obtained, this reinforces the argument that the entity is not a Trust.
3. **Prepare a Written Application:**
- **Application for PAN Status Change:** Draft a formal application requesting a change in the PAN status from Trust to AOP. Include a detailed explanation of why the entity should be classified as an AOP and provide supporting documentation.
- **Cover Letter:** Include a cover letter stating the request for change, along with the PAN details and reasons for the status change.
4. **Submit the Application:**
- **Submit to Jurisdictional Ward:** Submit the written application along with the supporting documents to the jurisdictional Income Tax Officer (ITO) or PAN office where the PAN was issued.
- **Request Acknowledgment:** Ensure that you get an acknowledgment receipt for the application submission.
5. **Follow Up:**
- **Track Application Status:** Regularly follow up with the jurisdictional PAN office or ITO to check the status of your application.
- **Respond to Queries:** Be prepared to respond to any queries or additional information requests from the tax authorities.
6. **Consider PAN Cancellation and Re-application (if needed):**
- **Cancellation and Re-application:** If the authorities do not accept the application for status change, you may need to consider canceling the existing PAN and applying for a new one with the correct status of AOP. This would involve:
- **Cancel Existing PAN:** File an application to cancel the current PAN.
- **Apply for New PAN:** Submit a new PAN application form with the correct status of AOP, ensuring all documents are updated to reflect the new classification.
### Summary
- **Initial Approach:** Try changing the PAN status by submitting a formal application with supporting documents to the jurisdictional tax authorities.
- **Alternative Approach:** If the change is not accepted, consider canceling the current PAN and applying for a new PAN with the AOP status.
### Additional Advice
- **Consult a Professional:** It is advisable to consult with a tax professional or chartered accountant who can provide guidance tailored to your specific situation and ensure compliance with tax regulations.
- **Check Latest Rules:** Ensure that you are following the latest procedures as per the Income Tax Department's guidelines, as rules and procedures may evolve.
By following these steps, you should be able to address the issue of changing the PAN status from Trust to AOP.
### Steps to Change PAN Status from Trust to AOP
1. **Understand the Legal Basis:**
- **Cooperative Housing Society:** As you mentioned, the society is a residential society and does not have charitable purposes. Typically, a cooperative housing society should be classified as an AOP rather than a Trust.
2. **Gather Supporting Documentation:**
- **Proof of Nature of Activity:** Collect documents demonstrating that the primary activity of the society is collecting maintenance charges for fulfilling common expenses and not for charitable purposes.
- **Society's Constitution or By-Laws:** Provide the society’s registration documents or by-laws that specify its purpose and nature of activities.
- **No Certificate from Charity Commissioner:** As no certificate from the Charity Commissioner has been obtained, this reinforces the argument that the entity is not a Trust.
3. **Prepare a Written Application:**
- **Application for PAN Status Change:** Draft a formal application requesting a change in the PAN status from Trust to AOP. Include a detailed explanation of why the entity should be classified as an AOP and provide supporting documentation.
- **Cover Letter:** Include a cover letter stating the request for change, along with the PAN details and reasons for the status change.
4. **Submit the Application:**
- **Submit to Jurisdictional Ward:** Submit the written application along with the supporting documents to the jurisdictional Income Tax Officer (ITO) or PAN office where the PAN was issued.
- **Request Acknowledgment:** Ensure that you get an acknowledgment receipt for the application submission.
5. **Follow Up:**
- **Track Application Status:** Regularly follow up with the jurisdictional PAN office or ITO to check the status of your application.
- **Respond to Queries:** Be prepared to respond to any queries or additional information requests from the tax authorities.
6. **Consider PAN Cancellation and Re-application (if needed):**
- **Cancellation and Re-application:** If the authorities do not accept the application for status change, you may need to consider canceling the existing PAN and applying for a new one with the correct status of AOP. This would involve:
- **Cancel Existing PAN:** File an application to cancel the current PAN.
- **Apply for New PAN:** Submit a new PAN application form with the correct status of AOP, ensuring all documents are updated to reflect the new classification.
### Summary
- **Initial Approach:** Try changing the PAN status by submitting a formal application with supporting documents to the jurisdictional tax authorities.
- **Alternative Approach:** If the change is not accepted, consider canceling the current PAN and applying for a new PAN with the AOP status.
### Additional Advice
- **Consult a Professional:** It is advisable to consult with a tax professional or chartered accountant who can provide guidance tailored to your specific situation and ensure compliance with tax regulations.
- **Check Latest Rules:** Ensure that you are following the latest procedures as per the Income Tax Department's guidelines, as rules and procedures may evolve.
By following these steps, you should be able to address the issue of changing the PAN status from Trust to AOP.
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