Unnati

NGO REGISTRATION

NGO may be defined as association having a definite cultural, educational, economical, religious or social association organization. They are not owned by any one and cannot distribute profits as such. Whatever profits they may earn from economic activities are reinvested or spent on appropriate non profit activities. The typical sources of revenue or non governmental organizations are donations, membership fees, interest and dividends on investments. Task-oriented and driven by people with a common interest, NGOs do a variety of service and humanitarian functions, bring resident issues to Governments, advocate and display policies and encourage political participation through arrangement of info. Some are arranged around particular concerns such as human rights, environment or wellness. NGO registration is indeed a blessing for the society. They offer analysis and experience, function as early caution mechanisms and assist keep track of and implement international agreements. Their relationship with workplaces and agencies of the United Nations system varies depending on their goals, their venue and the mandate of a specific institution. The NGOs can be registered under any of the following Acts 1. Indian Trust Act, 1882 2. Societies Registration Act, 1860 3. Companies Act, 1956, u/s 25. 4. Charitable and Religious Trusts Act, 1920. 5. Sikh Gurdwara Act, 1925 6. Trustees and Mortgagees Powers Act, 1866 7. Wakf Act, 1995 8. Indian Trustees Act, 1866 9. Religious Endowment Act, 1863. A Non Profit Organization can get income tax benefit by getting itself registered and abiding by certain other process, but such NGO Registration does not provide any profit to the persons making donations. The Income Tax Act 1961 has certain provisions which offer tax benefits to the "donors" like 35ac where donor gets 100% tax rebate and 80G where donor gets 50% tax rebate. In India non profit / public charitable companies can be registered as trusts, societies, or a personal limited non earnings business, under section 25 Companies Act 1956. Non-profit organizations in India exist independently of the state. They are self-governed by a board of trustees or 'handling committee'/ governing council, making up people who typically serve in a fiduciary ability; produce perks for others, generally outside the membership of the company; and, are 'non-profit-making', in as much as they are restricted from distributing a financial residual to their own members. Section 2(15) of the Income Tax Act 1961 applies consistently throughout the Republic of India-- defines 'charitable purpose' to consist of 'relief of the inadequate, education, clinical relief and the advancement of any other object of general public energy'. A function that relates specifically to religious teaching or worship is not considered as charitable. Thus, in establishing whether a function is exclusive or public, one has to see if the course to be benefited, or from which the beneficiaries are to be selected, constitute a considerable body of the public. A public charitable function or registration of NGO has to benefit a sufficiently huge area of the general public as differentiated from pointed out individuals. Organizations which do not have the public aspect such as trusts for the perk of workmen or staff members of a company, however many have not been held to be charitable. As long as the beneficiaries of the company make up a changing and uncertain body of the general public answering a specific description, the fact that the beneficiaries may belong to a certain religious faith, or a sect of individuals of a certain spiritual persuasion, would not impact the organization's 'public' character. Whether a trust, society or section-25 Company Act offers all classifications equal therapy, in regards to exempting their income and granting 80G certificates, where benefactors to non-profit organizations might declare a discount versus contributions made. Foreign contributions to non-profits are governed by FCRA policies and the Home Ministry. Types of NGO Trust:

A trust is a kind of Non Government Company signed up under Indian Trust Act 1882. It is quickly formed within 15 days. Minimum members required in a Trust are 3. Even relatives can be involved in a Trust. The maximum variety of members can be upto 21. The classifications of Trustees are usually President, Vice-President, Chairman, Vice-Chairman, Secretary, Treasurer and so on. For a trust registration in Delhi, it is required for the main founder of the organization to have an aadhar card with the electricity bill of the main office address. Moreover, two photographs of each member is required along with their Aadhar Card. The location should be authorized and if the office is on rent, NOC from proprietor is likewise required.

A society is registered under Indian Societies Act 1860. The standard requirements for its development are same as that of Trust formation. The only distinction is that family members can not be in a Society. Minimum members required in a Society formation are Eight and all Eight must be from different states for a nationwide level NGO. For state level Minimum Seven Member are require. The development of a Society takes 15 to 30 days time.

Section 8 Company is a Non-Revenue assortment, gotten under the Indian Companies Act 1956. It might be formed as a Public or Private Business having a restricted obligation, with or without allocation capital. It requires a minimum of three trustees; there is no upper utmost to the amount of members. The Board of chiefs is acknowledged as the board management. Although it is signed up by registrar of companies, its funds can be used just for social welfare tasks only and not for personal benefits or gains.

An NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The Income Tax Act 1961 has certain provisions which offer tax benefits to the donors. All NGO's should avail the advantage of these provisions to attract potential donors. Section 80G is one of such sections. If an NGO gets itself registered under section 80g then the person or the organization making a donation to the NGO will get a deduction of 50% from his/its taxable income. If an NGO gets registered under 12A and 80g, then only it is applicable for any government funding. A newly registered NGO can also apply for 80g registration. The following documents are required for 80g registration. Section 12a and 80g is of a great relief. NGOs do not have to pay tax for the entire lifetime if it gets registered under section 12a. Besides, the corporate and the ministries prefer to give donations to those who are having 12a and 80g registration. By doing such, their taxes are deducted by 50% of the donation given. Today in this growing IT world, the website of a NGO is essential which speaks about the NGO profile, activates, their members, its history, address and the social work done by it. They should maintain their balance sheets, annual reports, accounts, records, bills, vouchers, photographs for proof of their social activities. This is of a real great help especially during the investigation by the IB officers during FCRA Registration or verification by the government officials applicable for government funding or any corporate officials applicable for corporate social responsibility funding for registration u/s 80g.