I am interested in knowing if a consumer co-op society can accept donation either in kind of cash from existing or a prospective member?
This particular consumer co-op society has accepted a donation of Rs 1,00,000/- from an anonymous donor. This query is very urgent as the adjourned AGM of the society is scheduled on 18th February 2017. The receipt of donation has come to light now.
Please treat this as most urgent. The society is registered in Mumbai.
I C Naik
Funds raising authority to cooperative societies is to be found in registered bye laws of a concerned Cooperative Society. So check in bye-laws if donations can be accepted. Donations from members are tax free as they are not in the nature of Income on principles of mutuality as enunciated by the judiciary.
Anonymous donations are very likely to be reckoned as income because it is a Cash Credit from sources not known. Tax liability appears quite certain.
