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Co-operative Society in PAN application form

Shruti (70 Points)

10 May 2007

Hi friends, what do we mark Co-operative society (not for charitable purpose) in a PAN application form? Can we mark it as AOP(trusts)? In such case Iam not sure that tax rates of co-operative society will apply or not! Please let me know if anybody has an answer.

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The One (379 Points)
Replied 10 May 2007

The One Says:

Shruti I usually don't answer questions on the Students section (having not been a student for a long time now). I can give you few pointers in this case if you want more information please post your topic on the Income Tax section.

A Cooperative Society is a taxable entity under the Income Tax Act ,1961. A Cooperative Society under the Act is to be treated as an association of persons (AOP), which is included in the definition of 'person' under the Income Tax Act,1961. So yes tick AOP in the form.

Even though, for taxation purposes, the status of a cooperative society is to be taken as an Association of Persons, the section 67A and section 86 of the Act have been excluded from application to the members of society.

A Cooperative Society is taxed at rates, which are different from those applicable to an AOP. Under the annual Finance Act , though individuals, Hindu undivided family, AOP or body of individuals , whether incorporated or not , or every artificial juridical person referred to in the Income Tax Act, are chargeable at rates prescribed in paragraph A, of the Finance act. A Cooperative society is chargeable to tax as per rates prescribed under paragraph B of Part1 of the first schedule to the annual Finance Act.

The amount of income tax computed in accordance with the provisions of paragraph B , shall in the case of every cooperative society, be increased by a surcharge . The rate of surcharge is prescribed in each of the Finance Acts.

The Cooperative Societies are entitled to several concessions (Section 80P), in the computation of their taxable income. Besides, they also enjoy the benefit of concessional rate of tax on their chargeable income under the annual Finance Act.

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Radhakrishnan K.V. (Joint Registrar of Co-operative Societies (Rtd.)) (1072 Points)
Replied 14 December 2012

If co-operative sicieties belongs to AOP how can those be treated in a different way in the computation of tax? Somewhere I have seen a judicial finding that Co-operative societies are not AOP. Then do they belong to artificial juridical person?

CA Ajit Shinde (4 Points)
Replied 11 November 2020

I am also having same query. One of my client is a Co-operative society but the thing is that they possess Pan card as a Trust. Now tax treatment for both the assessee's are different which primarily based on the legal status.

Questions :

1. Can we change status of assessee in PAN card?

2. Now how to file return of Co-Operative Society which is having pan card of trust.

Please do help guyz if you had such a situation in your professional era.

Thanks & Regards

CA Ajit Shinde