Project Pulse

Indian Trusts Act, 1882: This act governs the registration and administration of public charitable trusts. NGOs can be registered as public charitable trusts under this act.
Societies Registration Act, 1860: NGOs can also be registered as societies under this act. Societies are commonly used for cultural, educational, and charitable purposes.
Companies Act, 2013: NGOs can be registered as Section 8 companies under this act. Section 8 companies are formed for promoting charitable activities, and they have certain privileges and exemptions.

This act regulates the acceptance and utilization of foreign contributions and foreign hospitality by NGOs in India. NGOs that wish to receive foreign funds must register under FCRA.

NGOs in India are eligible for tax exemptions under Section 12A and Section 80G of the Income Tax Act. Section 12A provides exemptions on income generated for charitable purposes, while Section 80G allows donors to claim deductions for contributions made to registered NGOs.

NGOs may be liable to pay GST on the services they provide or on the sale of goods, depending on their annual turnover.

NGOs are required to file annual income tax returns, and the income and expenses should be audited by a chartered accountant.

In addition to national laws, states in India may have their own regulations and guidelines for NGOs. These can include state-specific registration requirements and reporting obligations.

FEMA governs foreign exchange transactions, including the receipt of foreign contributions by NGOs. NGOs registered under FCRA must comply with FEMA regulations.

NGOs often work in partnership with government departments and agencies, and they may need to adhere to specific guidelines and regulations for projects funded by the government.

Depending on the nature of their activities, NGOs may need to comply with other laws and regulations, such as environmental laws, labor laws, and intellectual property laws.

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