The statutory compliances required are minimal. Consequently recurring expenditure are also negligible.
Area of operation can be throughout India even if registered in one particular state. No separate registration is required for operating in another state.
Income Tax Provisions
- Income Tax Registration is compulsory within 12 months of registration for the societies registered under the Act.
- Registration under section 12A & 80G
- Obtaining PAN from the IT department
- Filing of Annual Returns of Income in due time.
- Calculation of funds to be accumulated if any, and take resolutions in the BOT/Executive Committee and file with the Income-tax Authorities.
- Tax deduction at source and returns to be filed as required by the IT Act.
- Filing of TDS return on time.
FCRA Registration & Other Applicable Registration
- FCRA Registration is compulsory for receiving the foreign funds.
- Labour and other relevant laws are applicable as per the applicability of the same.
- Filing of returns
- Changes in the governing councils/board of trustees need to inform properly and get the consent from MHA.
- Maintenance of separate bank account exclusively for foreign contributions.
- Not to mix foreign contributions and local contributions.
Registrar of Society Compliance
A list of general and governing body members is required to be filed with the Registrar of the Societies every year. In addition to it, annual audited statements should also be filed. The requirement of submitting annual reports varies marginally between States to States. Therefore, the local law have to be checked.
