Interpretations
96. In this Chapter, unless the context otherwise requires,
(a) a business shall be incidental to the permitted welfare activity if the business is carried on in the course of the actual carrying out of the permitted welfare activity;
(b) "advancement of any other object of general public utility" shall not be a permitted welfare activity if it involves the carrying on of any activity in the .nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess, fee or any other consideration, irrespective of nature of use, application or retention, of the income from such activity;
(c) "associated concern" shall have the meaning assigned to 'associated enterprises' in section 113, with the modification that for the word 'enterprise' with all its grammatical variation, the word 'concern' with its conrresponding grammatical variation shall be substituted;
(d) "non-profit organisation" means an organisation, by whatever name called, including a trust, if -
(i) it is established for the benefit of the general public;
(ii) it is established for carrying on permitted welfare activities;
(iii) it is not established for the benefit of any particular caste;
(iv) it is not established for the benefit of any of its members;
(v) it actually carries on the permitted welfare activities during the financial year;
(vi) the actual beneficiaries of its activities are the general public;
(vii) it does not intend to apply its surplus or other income or use its assets or incur expenditure, directly or indirectly, for the benefit of any interested person;
(viii) any expenditure by the organisation does not enure, directly or indirectly, for the benefit of any interested person;
(ix) the funds or assets of the organisation are not used or applied or deemed to have been used or applied, directly or indirectly, for the benefit of interested person;
(x) the surplus, if any, accruing from its permitted activities does not enure, directly or indirectly, for the benefit of any interested person;
(xi) the funds or the assets of the non-profit organisation are not invested or held, at any time during the financial year, in any of the forms or modes specified in section 91;
(xii) it maintains such books of accounts and in the manner, as may be prescribed;
(xiii) it is registered as such under section 93; and
(xiv) it obtains a report of audit in prescribed form from an accountant beforedue date of filing of the return in respect of,-
(A) the accounts of business, if any, carried on by it in accordance with the provisions of section 84; and
(B) its accounts relating to the permitted welfare activities in a case where the gross receipts referred to in section 89 exceeds one lakh fifty thousand rupees;
(e) "general public" means the body of unascertained persons sufficiently defined by some common quality of public or impersonal nature;
(f) "interested person" in relation to a non-profit organisation means,-
(i) the founder of the organisation or the author of the trust;
(ii) any person whose total contribution to the organisation up to the end of the relevant financial year exceeds fifty thousand rupees;
(iii) a member of the Hindu undivided family if the author or founder or person is the family;
(iv) any manager, by whatever name called, of the organisation or trustee of the trust;
(v) any relative of the author, founder, member, trustee or manager;
(vi) any concern in which any of the persons referred to in clauses (i) to (v) has a substantial interest;
(g) "permitted welfare activity" means any activity,-
(i) involving the relief of the poor;
(ii) for the advancement of education;
(iii) for providing medical relief;
(iv) for the preservation of environment (including watersheds, forests andwildlife;
(v) for the preservation of monuments or places or objects of artistic or historicinterest; or
(vi) for the advancement of any other object of general public utility;
(h) "trust" includes any legal obligation.
