Disclosure in Financial Statements by Companies

Companies Act: Currently all entities are likely to be busy in closing their accounts, in this regard you may like to know about latest requirements for information to be disclosed in Financial Statements.

All companies (including S.25/S.8 companies) would need to disclose following information in their financial statements. Every company shall disclose the details of Specified Bank Notes (SBN), i.e. Notes of Rs 500 (old) & Rs 1000 denominations, in following manner.

The auditor is also required to audit and report if the correct information has been disclosed by the company in its accounts regarding above. Presently this information has been requested only from companies, but it is possible that it may be extended to entities other than companies.

Income Tax: However, please note all assesses have to disclose in their Income Tax Returns (ITRs) total cash deposited by taxpayers in their bank accounts. In fact a new column has been introduced in all ITR Forms to report on cash deposited by taxpayers in their bank accounts during the demonetization period, i.e., from November 9, 2016 to December 30, 2016. However taxpayers who have deposited less than Rs 2 lakh need not fill up this column.

Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

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How a foreign non-profit entity can work in India?

Dear Members,

Please provide your/expert inputs in the following areas:
a) Is it legal if any registered society/ organisation based in India hosts another global network body/ organisation? In that case, all financial administration would be managed by host agency and organisation only use address for all official communication with government and other stakeholders.
b) How can a global agency operate in India without any registration? what are the various options available.
c) what are the procedures for opening a liaison office in India?

Looking forward to your kind reply.

Country Coordinator and Representative FFI-India
Centres for Disease Control & Prevention
New Delhi

Posted in FCRA, TAX, LEGAL | 2 Comments

Can a foreigner work/volunteer for an NGO?

If a foreigner joins as an unpaid volunteer in a NGO for a long term period more than 180 days or for around 2-3 years on an employment visa or student visa and foreigner is registered with FRRO as per the required rules then is it necessary to pay any remuneration or token amount to the volunteer or intern? Can he/she continue to work on a voluntary basis even though she/he is here on an employment visa? Is there any rule saying minimum amount NGO has to pay ?

Arvind Kumar

Posted in FCRA, TAX, LEGAL | 3 Comments

Treatment of FCRA Fund received in Non FC Account

What happen when a NGO receives the FCRA amount in its NON FC accounts?

How it can be send back to the Donor ?


Neeraj Kumar Sinha

Posted in FCRA, TAX, LEGAL | 1 Comment

Donation from NRE Account

Dear Members,

Greetings to ALL!

My query is about receipt of individual donations from NRE account to a NGO which does not have FCRA certification…

What can be done if donations of Rs. 2,500 – 10,000 are received in NGO’s account?

I am sure this query must have been answered several times before…please pardon me for asking the same question again…

With kind regards,


Posted in FCRA, TAX, LEGAL | 5 Comments

Updating detail of FCRA Bank Accounts

As you may be aware that FCRA Dept had issued a Notice dated 18th July 2016 requiring all ‎organisations to update their Utilisation Accounts on FCRA website. Now the Department has ‎published a list of FCRA registered NGOs who have not updated their bank details till now. ‎

As per this list about 5845 FCRA Registered organizations have not yet updated their banks ‎details. In fact surprisingly this includes 2077 organization where even Designated Bank details ‎are not available with the FCRA department. ‎

We strongly recommend that please go and check these lists and if you find your organisation’s ‎name is also their please ensure that it is immediately updated.‎

Socio Research & Reform Foundation (NGO)
‎512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; ‎
website: http://www.srr-foundation.org

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Intimation or Approval

Dear SRRF Dialogue Members,

I have one NGO in which they open sub-utilisation accounts for their various projects and intimate the same within time as prescribed in the Act & Rules.

My query is whether NGO can start utilising funds from such intimated accounts after intimation or need to wait for the approval of sub-utilisation account from MHA

Your swift response is awaited along with some cited information as NGO had one mail from MHA which says that NGO should wait for approval

Thanks & regards
CS Swati Singhal Arora
Senior Associate

Posted in FCRA, TAX, LEGAL | 5 Comments

Is intimation to FC dept. required for opening a sub designated FC account?

Dear Dialogue member


is intimation to FC dept. is required for opening a sub designated FC account?

Sakshi Sharma

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Treatment of FCRA fund received in utilisation account instead of main account

Dear Members,

Our NGO has received a foreign donation directly into our Utliisation account, instead of the FCRA Main account. How can this be corrected?


Sujatha Krishnaswamy

Posted in FCRA, TAX, LEGAL | 2 Comments

NGO’s working not to be stifled even if FCRA registration not renewed

In a major reprieve for Lawyers Collective, a non-profit run by former ‎additional solicitor general Indira Jaising, Bombay High Court issued an ‎interim order recently, restraining the charity commissioner from attaching ‎the organisation’s assets and accounts.‎

Justice MS Sonak observed that while FCRA Act gave the Union government ‎power to “regulate or even prevent associations from accepting foreign ‎funds,” it did not permit the government to “stifle the very functioning of ‎individuals or associations.”‎

The court directed that the domestic and non-FCRA bank accounts of the ‎organisation be de-freezed on the condition that the NGO file quarterly ‎reports detailing the use of these funds.‎

In November last year, MHA had permanently cancelled the organisation’s ‎FCRA registration, alleging the misuse of foreign funds. The ministry had ‎directed that the NGO’s bank accounts be frozen and its assets attached. The ‎MHA had issued similar orders for Greenpeace India, and activist Teesta ‎Setalvad’s NGOs — Sabrang Trust and Citizens for Justice and Peace.‎

Lawyers Collective approached the Bombay high court through senior ‎advocates Aspi Chinoy and Jamshed Mistry, arguing that the MHA order — ‎that draws upon sections 22 and 15 of the FCRA — was erroneous and that ‎the sections had been misinterpreted. Advocate Chinoy argued that FCRA ‎provisions permitted the disposal of assets only with regard to defunct ‎organisations. He added that Lawyers Collective was an existing entity that ‎conducted extensive legal research in the fields of health and social justice. ‎He said the organisation had come to a standstill as the MHA had prohibited ‎it from accessing its own domestic accounts.‎

Justice Sonak observed that some of the allegations levelled by MHA were ‎‎“quite vague”. He added that since the appeal would be taken up for a final ‎hearing to decide upon the legality of the MHA’s decision, in the meantime, ‎it would not be appropriate for the NGO’s functioning to be halted.‎

Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

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