Societies in India are governed by the provisions of the Societies Registration Act 1860 which is a central Act, with each state adopting it with certain modifications.
Societies in India are governed by the provisions of the Societies Registration Act 1860 which is a central Act, with each state adopting it with certain modifications. As per section 20 of the Societies Registration Act, 1860, the following societies may be registered under this Act: -
In addition to the above purposes, based on the Societies Registration Act that is amended and implemented by the respective State Government, the purposes for which a Society can be registered in India may vary.
The word “charitable” has not been defined under the Societies Registration Act. However, the definition can be inferred from the Income Tax Act and also from the Bombay Public Trusts Act.
As per Section 2(15) of the Income Tax Act, 1961, “charitable purpose” includes relief of the poor; education; yoga; medical relief; preservation of the environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest; and the advancement of any other object of general public utility, provided that the advancement of any other object of a general public utility shall not be an activity like trade, commerce or business.
According to section 9(1) of the Bombay Public Trusts Act, 1950, “charitable purpose” includes: relief of poverty or distress; education; medical relief; provision for facilities for recreation or other leisure time occupation (including assistance for such provision), if the facilities are provided in the interest of social welfare and public benefit; and the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship.
As both these definitions are inclusive and exhaustive, the purposes similar to the purposes mentioned in the aforesaid definitions will also constitute charitable purposes.
The Societies Registration Act also provides for the dissolution of the societies and for that at least three-fifths of the society's members must assent towards dissolution. After that all necessary steps shall be taken for the disposal and settlement of the property of the society, its claims and liabilities according to the rules of the said society applicable thereto. However, upon dissolution, and after settlement of all debts and liabilities, the funds and property of the society may not be distributed among the members of the society, rather, the remaining funds and property must be given or transferred to some other society, preferably one with similar objects as the dissolved entity.
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