Normally Non Government Organizations (NGOs) like Trusts, Societies, Section 8 Companies etc receive income in the form of Donations from general public for carryings out their non profit objects. In general any income received is taxable in the hands of the person who receives it. But the NGOs serve the public with the Donations from the public. Therefore they can not bare the tax.
Therefore this types of NGOs can get claim from applicability of Income Tax from the amount they receive subject to registration under Section 12A of the Income Tax Act, 1961 of India.
Registration of a Private Limited Company or getting IEC License / MSME Registration is not just completed task, in fact it is a beginning task from then you are supposed to comply with much legal compliance which are may be monthly, quarterly, biannually or annually or event based on the specific nature of the task. Therefore we request you take informed decisions regarding all of this being in touch with us from time to time. Users of this portal shall also refer The Information Technology Act, 2000 and The Companies Act, 2013, Partnership Act, GST Act, Income Tax Act etc which are generally Applicable to most of the businesses in India.
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