Compliance for Society
A Society is registered under the Societies Registration Act, 1860 or respective State Societies Act and is generally formed for charitable, literary, scientific, educational, or cultural purposes. Societies are governed by their Memorandum of Association (MOA) and Rules & Regulations, which define their structure, governance, and compliance obligations.
Societies are required to maintain transparency in financial operations, conduct regular governing body meetings, and file annual returns with the Registrar of Societies. They must also maintain proper books of accounts and ensure that funds are utilized strictly for the objectives mentioned in the MOA.
Income tax compliance is mandatory for societies, including filing of annual returns and maintaining eligibility under 12AB and 80G wherever applicable. Societies receiving foreign contributions must also comply with FCRA regulations.
Key Compliances
Societies must conduct Annual General Meetings, maintain minutes, file annual returns with the Registrar, update membership records, maintain financial statements, and comply with audit requirements. Any changes in governing body or address must be reported to the Registrar.
Income Tax Compliance
Societies must file ITR-7 annually and comply with exemption conditions under Section 12AB and 80G if registered. Income must be applied strictly for charitable objectives.
Audit Requirements
Audit is generally mandatory based on income thresholds or state-specific society laws and is essential for maintaining transparency.
Why Compliance is Important
Compliance ensures legal recognition, continued registration validity, donor confidence, and eligibility for government and CSR funding.