Here are the statutory compliances required of a registered charitable society.
Registered charitable societies play a very vital role in the social development sector of the country. Hence, recognizing their role in public life, the government has given them many privileges. However, there are certain rules and regulations to be followed. These rules may be from the points of view of the income tax, GST, FCRA, social security schemes (like the PF and Gratuity, etc.). This article limits its scope to the income tax.
From Income Tax Point-of-view:
The taxation of charitable societies is governed by Chapter III of the Income Tax Act, which contains sections 11, 12, 12A, 12AA and 13. Section 12A/12AA contains the provisions concerning the registration and the registration procedure under the Income Tax Act. Sections 11 and 12 contain the provisions concerning the conditions to be fulfilled by the charitable societies in order to claim exemption from income tax. Section 13 stipulates the provisions concerning the trusts which are not eligible for exemption u/s 11 and 12.
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Fr Alex Gnanapragasam SJ
