In India public charitable organisations can be registered as trusts, societies, or Section-25 companies.
Once the registration process is complete the next step is to apply for tax exemption to the income tax authorities.
The Income Tax Act is federal legislation that affects all not-for-profit organisations uniformly throughout India. It treats all of them equally in terms of exempting their income and in granting a certificate under Section 80 G whereby donors to not-for-profit organisations can claim a tax rebate against the donations they make.
An important condition for exempting the income of a not-for-profit organisation from tax is that the income must be applied or accumulated in India.
