Society Compliance in India: A Complete Guide

1. Introduction to Society Compliance

A society is an association of individuals united by a mutual consent to deliberate, determine, and act jointly for a common charitable, literary, scientific, or social purpose. Once a society is registered under the Societies Registration Act, 1860 (or relevant state act), it must adhere to a set of legal, financial, and regulatory compliances to maintain its legal status, tax exemption eligibility, and public credibility.

2. Key Legal Framework Governing Societies

• The Societies Registration Act, 1860 (central law)

• State amendments (e.g., Maharashtra Societies Registration Act, 1971)

• Income Tax Act, 1961

• Foreign Contribution Regulation Act (FCRA), 2010 (if applicable)

3. Annual and Periodic Compliances for Registered Societies

✅ A. Legal Compliances

1. Annual General Meeting (AGM)

   • Must be held every year to approve accounts and elect office bearers.

   • Decisions must be minuted and approved.

2. Managing Committee Meetings

   • Conduct regular executive or managing committee meetings as per the society’s bylaws.

3. Filing of Annual List of Members

   • File a list of governing body members with the Registrar of Societies every year (Form VI in many states).

4. Filing of Resolutions or Amendments

   • Any amendment to the Memorandum, Rules, or Bye-laws must be filed and approved by the Registrar.

5. Change of Address or Officers

   • Intimate the Registrar of any change in registered address or governing members.

✅ B. Financial and Income Tax Compliances

1. PAN and TAN for the Society

   • PAN is mandatory; TAN is required if TDS is deducted.

2. Maintain Proper Books of Accounts

   • Income and expenditure records, receipts, grants, and fixed assets must be documented accurately.

3. Audit of Accounts

   • Audit by a Chartered Accountant is mandatory, especially if society avails tax exemption or government funding.

4. Filing of Income Tax Return (ITR-7)

   • Even if income is exempt, ITR-7 must be filed annually before the due date.

5. 12A Registration (Optional but Recommended)

   • Enables the society to claim exemption from income tax under Sections 11 & 12 of the Income Tax Act.

6. 80G Registration (Optional)

   • Allows donors to claim tax deduction on donations.

✅ C. FCRA Compliance (If Foreign Contributions Are Received)

1. FCRA Registration or Prior Permission

   • Mandatory for receiving foreign funds.

2. Maintain Separate FCRA Bank Account

   • Opened in SBI, New Delhi, as per new FCRA rules.

3. File FCRA Annual Return (Form FC-4)

   • Must be filed by 31st December every year.

4. Quarterly Intimation on FCRA Portal

   • Details of foreign contribution receipts must be updated quarterly.

4. Common Statutory Filing Deadlines

5. Penalties for Non-Compliance

6. FAQs on Society Compliance

Q1. Is it mandatory to register a society under the 1860 Act?
Yes, to avail legal status and tax exemptions, registration is required.

Q2. Can a society earn income?
Yes, but all income must be applied towards its objects. Profits cannot be distributed to members.

Q3. Is audit mandatory for a small society?
Yes, if the society wants to retain tax exemption or apply for 80G/12A.

Q4. Can a society be dissolved?
Yes, a society can be dissolved as per the provisions in the bylaws and the Societies Act.

Q5. What if a society fails to comply with its annual filings?
The Registrar can issue a notice, impose penalties, or cancel the registration.

✅ Conclusion

Compliance is a vital part of running a registered society in India. It builds trust among donors, ensures tax exemption eligibility, and prevents legal troubles. Whether it’s filing annual returns, updating member records, or maintaining accounts, timely compliance ensures your society’s smooth operation and long-term sustainability.