In India non profit / public charitable organizations can be registered as trusts,societies, or a private limited non profit company under section-25 companies.
A public charitable trust is usually floated when there is property involved, especially in terms of land and building.
According to section 20 of the Societies Registration Act, 1860, the following societies can be registered under the Act: ‘charitable societies, military orphan funds or societies established at the several presidencies of India, societies established for the promotion of science, literature, education or the fine arts, for instruction, the diffusion of useful knowledge, the diffusion of political education, the foundation or maintenance of libraries or reading rooms for general use among the members or open to the public, or public museums and galleries of paintings and other works of art, collection of natural history, mechanical and philosophical inventions, instruments or designs.’
III. Section-25 Company
: According to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25 company can be established ‘for promoting commerce, art, science, religion, charity or any other useful object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.
RGESS is a scheme for first-time equity investors with an annual income of up to Rs 10 lakh and who have not invested in stocks before 23 November 2012. Under this scheme, first-time retail investors investing up to Rs 50,000 in approved stocks and mutual funds can claim 50 per cent of the amount as tax deduction under Section 80CCG of the Income Tax Act. This is over and above the Rs 1 lakh limit under Section 80C.
Deduction in respect of investment made under an equity savings scheme. (Section 80CCG of Income Tax Act, 1961)
Where an assessee, being a resident individual, has, in a previous year, acquired listed equity shares [or listed units of an equity oriented fund] in accordance with a scheme, as may be notified by the Central Government in this behalf, he shall, subject to the provisions of sub-section (3), be allowed a deduction, in the computation of his total income of the assessment year relevant to such previous year, of fifty per cent of the amount invested in such equity shares [or units] to the extent such deduction does not exceed twenty-five thousand rupees.
(2) The deduction under sub-section (1) shall be allowed in accordance with, and subject to, the provisions of this section for three consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed equity shares or listed units of equity oriented fund were first acquired.