[1] Whether a trust, society or Section 8 company, the Income Tax Act, 1961 gives all categories equal treatment, in terms of exempting their income and granting 80G certificates, whereby donors to non-profit organisations may claim a rebate against donations made.
[2] Foreign contributions to non-profits are governed by FC(R)A regulations and the Home Ministry.
A purpose that relates exclusively to religious teaching or worship is not considered as charitable.
A Non-Profit can be organized in India in the following ways: A public charitable trust is usually floated when there is a property involved, especially in terms of land and building.
According to section 8(1)(a), (b) and (c) of the Indian Companies Act, 2013, a section-8 company can be established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objectives of the company and no dividend is paid to its members.
Once the availability of name is confirmed, an application should be made in writing to the regional director of the company law board.
The applicants should also, within a week from the date of making the application to the registrar of the companies, publish a notice in the prescribed manner at least once in a newspaper in a principal language of the district in which the registered office India of the proposed company is to be situated or is situated and circulating in that district, and at least once in an English newspaper circulating in that district.
The registrar of companies may, after considering the objections, if any, received within 30 days from the date of publication of the notice in the newspapers, and after consulting any authority, department or ministry, as he may, in his discretion, decide, determine whether the license should or should not be granted.