What are the laws applicable in Non-Government Organisation (NGO)

NGOs are protected and regulated by various Indian laws to make it function with transparency and accountability:

1. Indian Trusts Act, 1882
   • Section 1: Application of the Act to NGOs set up as trusts.
   • Section 10: Trustees’ obligations and liabilities.
2. Societies Registration Act, 1860
   • Section 1: Registration requirements for societies.
   • Section 20: Objects for which societies may be formed.
3. Companies Act, 2013
   • Section 8: Formation of NGOs as non-profit companies.
   • Section 25: Special provisions for non-profit companies under the old Companies Act (replaced by Section 8 in 2013).
4. Income Tax Act, 1961
   • Section 11: Tax exemptions for income derived from property held for charitable purposes.
   • Section 12A: Registration for tax exemption.
   • Section 80G: Deduction on donations made to NGOs.
5. Foreign Contribution (Regulation) Act, 2010 (FCRA)
   • Section 4: Prohibition of receipt of foreign contributions by certain persons.
   • Section 7: Transfer of foreign contributions to registered organizations.
   • Section 11: Registration and prior permission requirements.
6. Payment of Gratuity Act, 1972
   • Section 4: Applicability of gratuity payment to NGO employees.
7. Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
   • Section 1: Applicability to NGOs employing more than 20 employees.
   • Section 6: Contribution requirements.
8. The Maternity Benefit Act, 1961
   • Section 5: Maternity leave benefits applicable to NGO employees.
9. Minimum Wages Act, 1948
   • Section 3: Minimum wage requirements for NGO employees.
10. Payment of Bonus Act, 1965
    • Section 10: Eligibility for bonus payments to NGO employees.
11. Shops and Establishment Act (varies by state)
    • Governs working hours, wages, and other conditions for NGOs.
12. Contract Labour (Regulation and Abolition) Act, 1970
    • Section 7: Requirements for NGOs employing contract labor.
13. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013
    • Section 4: NGO’s responsibility to constitute an internal complaints committee.
14. Equal Remuneration Act, 1976
    • Section 4: Equal pay for men and women employed by NGOs.
15. Employee’s Compensation Act, 1923
    • Section 3: NGOs’ liability for compensation in case of employee injury or death.
16. Professional Tax Act (varies by state)
    • NGO’s responsibility to deduct and remit professional tax for employees.
17. Right to Information Act, 2005
    • Section 2(h): Applicability to NGOs receiving substantial government funding.
18. Goods and Services Tax (GST) Act, 2017
    • Section 22: Registration requirements for NGOs with specific turnover.
19. Charitable and Religious Trusts Act, 1920
    • Provides governance guidelines for charitable trusts.
20. Juvenile Justice (Care and Protection of Children) Act, 2015
    • Sections 41-45: Obligations of NGOs dealing with children’s welfare.
21. Protection of Children from Sexual Offences (POCSO) Act, 2012
    • Section 19: NGO’s responsibility to report cases of child abuse.
22. National Trust Act, 1999
    • Focused on NGOs working for the welfare of persons with disabilities.
23. Environment Protection Act, 1986
    • Section 3: NGO responsibilities in projects impacting the environment.
24. Indian Penal Code, 1860
    • Section 120B: Criminal conspiracy in cases of misuse of NGO funds.
    • Section 406: Criminal breach of trust.
25. Criminal Procedure Code, 1973 (CrPC)
    • Section 91: Summons to produce documents in investigations related to NGOs.
26. Press and Registration of Books Act, 1867
    • Applicable if the NGO publishes newsletters or journals.
27. Public Trusts Act (varies by state, e.g., Maharashtra Public Trusts Act, 1950)
    • Registration and governance of public trusts.
28. Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
    • Section 4: Requirement for NGOs to notify job vacancies.
29. Consumer Protection Act, 2019
    • Section 2(7): Scope for NGOs to file complaints on behalf of consumers.
30. The Prevention of Money Laundering Act, 2002
    • Section 12: KYC requirements for NGOs handling large funds.
31. Bonded Labour System (Abolition) Act, 1976
    • Section 4: Abolishes bonded labor systems, relevant if NGOs work with vulnerable communities.
    • Section 16: Prohibits engagement of any bonded labor.
32. Information Technology Act, 2000
    • Section 43A: Requires NGOs handling sensitive data to implement data protection measures.
    • Section 72A: Criminalizes breach of data privacy by NGO employees.
33. Prevention of Corruption Act, 1988
    • Section 7: NGOs receiving government funds may be subject to anti-corruption regulations.
    • Section 13: Imposes penalties for criminal misconduct by public officials, relevant to NGO officials misusing funds.
34. Protection of Human Rights Act, 1993
    • Section 12: Empowers NGOs to approach the National and State Human Rights Commissions for redressal of grievances related to human rights violations.
35. Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
    • Section 7: Registration of NGOs involved in construction activities.
    • Section 18: Obligations of NGOs to provide welfare facilities for workers.
36. Apprentices Act, 1961
    • Section 8: Requires NGOs providing apprenticeships to comply with government regulations on training and stipends.
37. Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988
    • Section 3: Exempts small NGOs from some labor law requirements if they have fewer than 20 employees.
38. Equal Opportunity Policy under Rights of Persons with Disabilities Act, 2016
    • Section 21: NGOs must have an equal opportunity policy if they employ persons with disabilities.
39. Central Goods and Services Tax (CGST) Act, 2017
    • Section 51: NGOs registered as deductors must comply with GST obligations for payments to vendors.
40. Prevention of Money-Laundering Act, 2002 (PMLA)
    • Section 2: Defines NGOs as “reporting entities” if they handle large financial transactions and requires KYC compliance.
41. Indian Partnership Act, 1932
    • Section 69: NGOs operating as partnerships must register to bring legal action in the court.
42. Representation of the People Act, 1951
    • Section 29B: Prohibits NGOs from donating to political parties, directly or indirectly, if they receive foreign funding.
43. Factories Act, 1948
    • Section 85: NGOs involved in manufacturing activities are required to register under the Factories Act if they employ more than 10 workers with power or 20 without power.
44. Trade Union Act, 1926
    • Section 6: Provides NGOs with the right to form unions for welfare and rights advocacy.
45. National Policy on Voluntary Sector, 2007
    • This policy governs the voluntary sector, including NGOs, promoting transparency, and emphasizing accountability.
46. Consumer Protection Act, 2019
    • Section 35: Empowers NGOs to file complaints on behalf of consumers.
47. Drugs and Cosmetics Act, 1940
    • Section 3: Applies to NGOs working with medicinal products, especially for health-focused NGOs.
48. The Clinical Establishments (Registration and Regulation) Act, 2010
    • Section 10: Requires NGOs operating medical establishments to obtain licenses and follow regulatory standards.
49. Wildlife Protection Act, 1972
    • Section 39: NGOs working in wildlife conservation are required to follow protective regulations against wildlife harm.
50. The Mental Healthcare Act, 2017
    • Section 20: NGOs providing mental health support services must ensure patient rights to access, consent, and dignity.

These laws collectively promote accountability, transparency, and fairness in the operations of NGOs across different domains.