Laws Governing Charitable Organisations In India: Charities can be formed in multiple ways and may be subject to various acts of legislation. The right of all citizens to form associations or unions is guaranteed by the Constitution of India, Article 19(1)(c). “Charities and charitable institutions, charitable and religious endowments and religious institutions” is a subject of the Concurrent list of the Seventh Schedule to the Constitution of India, where both the Centre and the States are competent to legislate and regulate charitable organisations. Under Schedule VII of the Indian Constitution, the subject ‘Trust and Trustees’ finds mention at Entry No.10 in the Concurrent List and ‘Charities & Charitable Institutions, Charitable and religious endowments and religious institutions’ find place at Entry No.28 of this list.
Laws Governing Charitable Organisations In India
The legal framework for the charity sector in India is quite complex with a number of different acts of legislation governing it in their own way. There are three basic legal forms of charitable entities under Indian law: trusts, societies, and section 25 companies. The legal framework governing the charitable institution will depend on the form of business organization the charitable institution takes. There is no comprehensive central law for legal incorporation of nonprofit organizations which applies to trusts, registered societies and section 25 companies alike.
Main laws governing the charity sector
- 1) Constitution of India Article 19(1)(c)
- 2) Indian Trusts Act, 1882 (applicable for private trusts)
- 3) Public Trusts Acts of various states in India.
- 4) The Societies Registration Act, 1860
- 5) The Companies Act, 2013
- 6) Income Tax Act, 1961
- 7) Foreign Contribution (Regulation) Act, 2010
Other Laws governing Charity Sector
Societies- 8) Religious Societies Act, 1880
- 9) Religious Institutions (Prevention of Misuse) Act 1988
- 10) The Rajasthan Societies Registration Act, 1958
- 11) The Karnataka Societies Registration Act, 1960
- 12) The West Bengal Societies Registration Act, 1961
- 13) The Madhya Pradesh Registration Adhiniyam, 1961
- 14) The Tamil Nadu Societies Registration Act, 1975
- 15) Manipur Societies Registration Act, 1989
- 16) The Jammu – Kashmir Societies Registration Act, 1998
- 17) Societies Registration (Uttar Pradesh Amendment) Act, 2000
- 18) Charitable and Religious Trusts Act, 1920
- 19)Religious Endowments Act, 1863
- 20) Charitable Endowments Act 1890
- 21) Hindu Religious and Charitable Endowments Act 1951
- 22) Official Trustees Act, 1913
- 23) Civil Procedure Code, 1908
- 24)Registration Act, 1908
- 25)Indian Stamp Act, 1899
- 26) Mussalman Wakf Act, 1923
- 27) Mussalman Wakf Validating Act,1913
- 28) Mussalman Wakf Validating Act, 1930
- 29) Wakf Act, 1995
- 30) Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987
- 31) Bihar Hindu Religious Trusts Act, 1950 15
- 32) Maharashtra Public Trusts Act, 1950
- 33) Bombay Public Trusts Rules, 1951
- 34) Karnataka Hindu Religious Institutions and Charitable Endowments Act, 1997
- 35) Karnataka Hindu Religious Institutions and Charitable Endowments Rules, 2002
- 36) Kerala Travancore-Cochin Hindu Religious Institutions Act, 1950
- 37) Orissa Hindu Religious Endowments Act, 1951
- 38) Rajasthan Public Trust Act, 1959
- 39) Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959
- 40) The Madras Hindu Religious And Charitable Endowments Act, 1951
- 41) Uttar Pradesh Charitable Endowments (Extension of Powers) Act, 1950
- 42) Charitable Endowments (U.P. Amendment) Act, 1952
- 43) United Provinces Charitable Endowments Rules, 1943
- 44) Religious Endowments (Uttar Pradesh Amendment) Act, 1951
- 45) Uttar Pradesh Hindu Religious Institutions (Prevention of Dissipation of Properties) (Repeal) Act, 2000
- (a) through its Article on the right to form associations or unions – Article 19 (1)(c);
- (b) through Article 43 which talks of States making endeavor to promote cooperatives in rural areas; and
- (c) through explicit mention in entries made in the Seventh Schedule.
- Entry 43 – “Incorporation, regulation and winding up of trading corporations, including banking, insurance and financial corporations but not including co-operative societies”.
- Entry 44 – “Incorporation, regulation and winding up of corporations, whether trading or not, with objects not confined to one State, but not including universities”.
- Entry 32 – “Incorporation, regulation and winding up of corporations, other than those specified in List I, and universities; unincorporated trading, literary, scientific, religious and other societies and associations; co-operative societies”.
- Entry 10 – “Trusts and Trustees”
- Entry 28 – “Charities and charitable institutions, charitable and religious endowments and religious institutions”.
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