Not-for-Profit & Trusts.

Anil Arora & Co. works with charitable trusts, societies, Section 8 companies, and CSR implementation vehicles, which operate under a tax and regulatory regime that has changed substantively since 2020 and continues to evolve. The choice of vehicle — public charitable trust under the relevant state Trust Act, society under the Societies Registration Act 1860, or Section 8 company under the Companies Act 2013 — determines the governance overlay, the registration calendar, and the dissolution rules. On the income-tax side, registration under Section 12AB (and a parallel registration under Section 80G to give donors a deduction) is now a five-yearly renewal exercise; charitable status requires application of the prescribed 85% of income each year, with deferral paperwork under Form 9A and accumulation under Form 10, and audit reporting in Form 10B or Form 10BB depending on receipt size.

Foreign-source funding is a separate regime that has tightened materially in recent years. The Foreign Contribution (Regulation) Act 2010, as amended, requires a registered or prior-permission status, a designated SBI New Delhi main-branch FCRA account, restrictions on sub-granting to other FCRA-registered entities, an administrative-expense ceiling, and annual Form FC-4 returns with audited utilisation. Section 8 companies that fund CSR activities for corporate donors layer on Schedule VII compliance, the impact-assessment requirement for projects above the threshold, and Form CSR-2 reporting.