What is Memorandum of Articles?
Whether a trust, society or section-25 company, the Income Tax Act,1961 gives all categories equal treatment, in terms of exempting their income and granting 80G certificates, whereby donors to non-profit organisations may claim a rebate against donations made. Foreign contributions to non-profits are governed by FC(R)A regulations and the Home Ministry.
For an organisation to be termed as Charity it has take Income tax clearances under 12 A Clause of Income Tax Act. Section 2(15) of the Income Tax Act defines charitable purpose to include relief of the poor, education, medical relief and the advancement of any other object of general public utility. A purpose that relates exclusively to religious teaching or worship is not considered as charitable.