35 AC Registration: Don’t just donate, donate right…..

In India, where doing welfare of people is one of the core principle of society, there are about one charitable organisation for every 1000 people and we all get phone calls and door-knocks soliciting donations.

As a human nature, everyone wants to help or to give for charitable cause, however, have we ever cross check or investigate the money which we have given is been use for the same cause or not?

Many of us may argue that- who is going to monitor them or how can they monitor their small contribution towards the larger good of the society or the cause.

With enforcement of Corporate Social Responsibility under Companies Act, 2013, many self claimed social organizations have grown up like mushrooms in every corner of the city has caused much confusion in the mind of reasonable donors.

This situation has also created problems for genuine charitable organizations, who are actually working for the upliftment and development of society, as people start distrusting them also. One way to find the credibility of organizations is through its registrations and audited accounts.

One of such registration is registration of NGO’s/charitable organization under the provisions of 35AC of the Income Tax Act, which is less known but highly useful instrument of fund raising for social cause. The objective of the said provision is to encourage business organizations and wealthy individuals to contribute m ore towards social welfare of general and downtrodden public. With increased emphasis on the corporate social responsibility and ostentatious display of charity by people like Mahindras, Birla etc., the contribution in monetary term by the corporate sector in India towards socially relevant project cannot be undermined. Charitable organizations involved in eligible projects for promotion of the social and economic welfare, can raise resources for eligible project from corporate sector or wealthy individuals and fulfill their objective of development.

Thus Section 35AC can be used as an effective tool of fund raising by NGO’s. It also beneficial to donor as they receive 100% rebate of income tax on the donated amount which makes a win-win situation for both.

To know the further details about 35 AC registrations, contact us at admin@equicorplegal.com or visit www.equicorplegal.com

Comments

PSARA License: To Start a Private Security Agency Business in India

Private Security Agency business is one of the most sought and rapid growing business in India with huge demand and potential. Due to ever evolving demand for private security by industry & business segments, the Private Security Agency business is growing for more than 20% and there is still huge untapped market still wide open for the future ventures. Today in any and every aspect, private security has an important role to play, whether its transfer of cash to ATM, transportation of valuables or protection to key members of business conglomerates. Any Private Security Agency cannot commence its business and operations in India without procurement of license under Private Security Agencies (Regulation) Act, 2005 also known as PSARA License . PSARA License is obtained state wise & is valid for 5 years and had to be renewed after every 5 years. The government fees for PSARA License is as following: 1. For one (1) District- Rs. 5,000/- 2. For more th

Non-Banking Financial Companies (NBFC)

A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company). Advantages of NBFC a) it can provide loans and credit facilities, b) it can trade in money market instruments c) it can do wealth management such as Managing portfolios of stocks and shares d)

Investment Frauds by Investment Advisers

Today driven by the promise of higher returns than the saving accounts or fixed deposits, most of the small and retail investors are moving their investments under the guidance of Investment Advisers. “ Investment Advisers ” means any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons and includes any person who holds out himself as an investment adviser, by whatever name called. Investment Advisers who make public appearance or make recommendations or offer an opinion concerning securities or public offers through public media while making recommendations through public media are required to comply with the relevant applicable laws. What is an Investment Advice: - “ Investment Advice” is an advice relating to investing in, purchasing, selling or otherwise dealing in securities or investment products, and advice on investment portfolio containing securities or investment products, whether

NCLT has Exclusive Jurisdiction for all the Company Matters

In deciding an appeal in the matter of MAIF Investment India PTE Ltd. v/s Ind-Barath Power Infra Limited & Ors ., Company Appeal (AT) No. 334 of 2018, NCLAT has reviewed and decided on the issue of exclusive jurisdiction of NCLT in all the company matters and to bar the jurisdiction of civil courts including complex and contentious one. The appeal was against the order given by NCLT, Hyderabad, where the NCLT, Hyderabad bench declined to entertain the petition under Section 59 of the Companies Act, 2013 for seeking a rectification in the register of members. The alleged dispute involved conversion of compulsory convertible debentures without requisite consent and quorum. NCLT, Hyderabad dismissed the petition stating the reason that issue raised were complex or contentious issue which required the examination of the Arbitration Act, 1996 & Insolvency & Bankruptcy Code, 2016. While dismissing the petition, NCLT, Hyderabad had relied on Supreme Court’s 1998 judge

Types of Companies under New Companies Act-2013

With new testament of Corporate law in force has introduced several different types of companies with special features. ONE PERSON COMPANY (OPC) One Person Company is defined in Sub- Section 62 of Section 2 of The Companies Act, 2013, which reads as follows: 'One Person Company means a company which has only one member' It shall also be important to note that Section 3 classifies OPC as a Private Company for all the legal purposes with only one member. All the provisions related to the private company are applicable to an OPC, unless otherwise expressly excluded. Ø Only a natural person who is an Indian citizen and resident in India- ü shall be eligible to incorporate a One Person Company; ü shall be a nominee for the sole member of a One Person Company. Ø No person shall be eligible to incorporate more than a One Person Company or become nominee in more than one such company. Ø No minor shall become member or nominee of the One Person Company

Legal Obligations of Technology Service Providers as Intermediaries

A database of millions of customers including their contact details are found freely accessible online and are available for sale at a very nominal price at various online social media platforms has brought a serious and basic question in focus- who all can be held responsible and accountable for such unauthorize and illegal acts? Prima facie , the person who is selling the database is responsible under the eyes of law, but do the technology services providers or the platform where such database is been listed, owes any obligation to the customers and can be held responsible for unauthorize acts by a third party on their platform? The technology service providers or the online platform operators are commonly known as “ Intermediaries ”. In India, these technology service providers or Intermediaries are governed by the provisions of Information Technology Act, 2000 (“ IT Act ”) along with Information Technology (Intermediaries Guidelines) Rules, 2011 (“ Intermediary Rules ”)

Nidhi Companies in India

This article enumerates the brief transaction procedure involved in the establishment of a Nidhi Company and the laws relating to Nidhi Company in force in India. It shall be noted that the activities described hereunder covers various relevant legislations, regulations and rules, for the time being in force in India and the legal entity has to obtain approval/register itself with Ministry of Corporate Affairs (“ MCA ”). Preface In the Indian financial sector, Nidhi Company refers to any mutual benefit society notified by the MCA. They are created mainly for cultivating the habit of thrift and savings amongst its members. The amount of business conducted by Nidhi Companies is not as big as commercial banks or deposit taking Non-Banking Finance Companies. Nidhi Companies are highly localized and mostly single office institutions. They are also referred to as mutual benefit societies, because they accept deposits and give loans to only their own members; and membership is limited

EquiCorp Associates

Search This Blog