In India, voluntary organisations are commonly known as Non-Governmental Organizations (NGOs).

An organisation can register itself as non-governmental organisation in four ways:

• Trust
• Society
• Section-25 Company
• Special Licensing.

Registration can be done with the Registrar of Companies(RoC).

The following laws or Constitutional Articles of the Indian Governmant are relevant to the NGOs:

• Articles 19(1)(c) and 30 of the Constitution of India
• Income Tax Act, 1961
• Public Trusts Acts of various states
• Societies Registration Act, 1860
• Section 25 of the Indian Companies Act, 1956
• Foreign Contribution (Regulation) Act, 1976

Tax benefits for organisations - India

Tax laws are subject to change every year, and to interpretation for which all organisations must have access to a professional legal/ tax advisor
Registered organisations may claim the following:
Exemption under Section 12 A of the Income Tax Act. This is an acknowledgement by tax authorities that the purpose of the organisation is of a charitable nature, and that it is not required to pay tax on income.
Income from business activities that is considered incidental to the primary purpose is exempt from tax

Benefits for donors - India
Organisations with 12A may claim: -
Registration under 80G, which entitles donors to claim 50 per cent of their donation as tax rebate against their total tax liability. There are   no limits to the amounts of money that can be donated under 80G, but the registration is granted for 2-3 years.
Registration under 35AC, which entitles donors to claim 100 per cent of their donation as tax rebate against their total tax liability. 35AC is   only awarded to specific projects of organisations, with limits to amount and time.
There are other registration clauses that allow specialist bodies such as research organisations to provide 125 per cent tax rebate to donors