Clause 98 - Registration of a nonprofit organisation. - Direct Taxes Code, 2010

Registration of a nonprofit organisation. 98. (1) A non-profit organisation shall make an application for its registration in the prescribed form and manner to the Commissioner. (2) The provisions of sub-section (1) shall not apply to any non-profit organization which has been granted approval or registration under the Income tax Act, 1961, as it stood before the commencement of this Code, if the organisation fulfils such conditions as may be prescribed. (3)The Commissioner, on receipt of the application for registration of a non-profit organisation made under sub-section (1), shall call for such documents or information as he considers necessary in order to satisfy himself about the objects and genuineness of its activities and may make such further inquiries as may be required. (4) The Commissioner shall, within a period of six months from the end of the month in which the application under sub-section (1) was received, pass an order in writing— (a) registering the non-profit organisation if he is satisfied about its objects and the genuineness of its activities; or (b) refusing to register the non-profit organisation if he is not so satisfied, after giving the organisation an opportunity of being heard. (5) The registration granted under sub-section (4) shall be valid from the financial year in which the application under sub-section (1) was made. (6) Where the Commissioner is satisfied that the activities of the non-profit organisation are— (i) not genuine; or (ii) not being carried out in accordance with its objects; or (iii) not being carried out in accordance with any other law which is applicable to it or under which it is registered or approved, he shall pass an order in writing cancelling the registration or withdrawing the approval, as the case may be, granted under this section or the Income tax Act, 1961, as it stood before the commencement of this Code, after giving the organisation an opportunity of being heard.