FCRA Helpdesk Online Portal

FCRA Helpdesk is now actively supporting to resolve FCRA related queries that NPOs face under following categories:

  • Annual return FC 4 or Penalty related issues
  • Awaited status of a current or a pending application
  • FC3A Registration or FC3B Prior permission of FC2 Foreign Hospitality and related clarification issues
  • FC3C Renewal or FC6A 6B 6C 6D 6E Change of details and related clarification issues
  • Login issues or forgot user id or email id or password
  • Others

Basically system allows you to generate a Enquiry Ticket. For this you need to follow following steps:

  1. Register on https://helpdesk.fcraonline.gov.in, by providing your e-mail or mobile number (please note this registration is different from normal user id that you use for accessing FCRA Online Portal, particularly for filing various FC returns. 
  2. Login using OTP.
  3. After logging in on the website, update your profile by entering some mandatory fields like (Name, Mobile number or email id, whichever is not available on your profile). You will need to verify once again by entering second OTP.
  4. After this you can enter your complaint in the allotted field.
  5. After successful registration of your enquiry, a unique Ticket No. is generated, which you can follow to have the query resolved.

In case you face any difficulties, write a mail at “support-fcra@gov.in” or through telephone number 011-23077501 and 011-23077505.


Socio Research & Reform Foundation (NGO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

Posted in FCRA, TAX, LEGAL | 2 Comments

Treatment of income generated through letting out property created from FCRA fund

We are a FCRA registered non-religious Society. We have received certain non-restricted foreign grants, which we want to utilise for acquiring immovable property for the purpose of Society activity. However, some of its portion will be let out and will generate rental income.

My query is whether the rent received will be treated in the nature of Commercial receipts or FCRA receipts in the Society’s financials.

Kindly enlighten.

Thanking You Deepak Tayal

Posted in FCRA, TAX, LEGAL | 3 Comments

SSE in India – Criteria for recognition & Registration of NPO / Social Enterprise at SSE –(Part II)

Criteria for recognition an entity as Social Enterprise

A NPO or FPE can be classified as a Social Enterprise. To be classified as one, following criteria has to be fulfilled.

  • Primacy of Social Intent needs to be established through engaging in certain social causes. These could be any of the activities covered under SDGs or even protection of national heritage, art and culture, promotion of rural/nationally recognised/para-Olympic/Olympic Sports, supporting non-profit ecosystems, and several other socio related activities. 
  • Entity should be focussed on serving under-served or less privileged population or backward regions, with minimum 2/3rd of its average revenues of last 3 years coming from serving such populations or 2/3rd of average expenditures of last 3 years focussed on target population.
  • Corporate Foundations, political religious organisations, professional or trade associations, infrastructure or housing companies (exception low-housing activities) will not be eligible to be recognised as social enterprise.

Registration of NPO / Social Enterprise at SSE

Registration Requirements

A NPO can register itself on SSE as per S.292(F) of ICDR Regulations. To do the same it needs to fulfil following requirements.

  • A NPO must have been registered for at least 3 years. Its registration as NPO (Society, Trust, S.8, etc.) must be valid for next 12 months at the time of seeking registration with SSE. PAN should confirm the legal status of the NPO.
  • If entity owned by Govt, indicate the same, or state if it is a private entity.
  • 12A/12AA/12AB registration, valid for at least 12 months.
  • Should have a valid 80G registration to be able to give IT deduction to investors.
  • NPO should have a minimum spending of around Rs 50 lakh during last FY and receipts at least around Rs 10 lakh.
  • NPO should have at least 2/3rd of its spending on social projects, to be classified as a social enterprise.

Benefits of registration on SSE as a Social Enterprise

  • Improved market access:  By registering on SSE as a Social Enterprise, a NPO gets access to a common and structured meeting ground between Social Enterprises and investors/donors with inbuilt regulation for providing sanctity and accountability of finances.
  • Synergy between investors and investee in social aims:In view of flexibility of investments and capital that would be available on an SSE, the canvas of choice would be much wider allowing investors and investees with similar missions and visions to connect seamlessly
  • Performance based philanthropy: Performance of the enterprises listed on an SSE would be monitored thus it will instil a culture of performance driven philanthropy.
  • Minimal registration cost: SSE saves cost for both issuer and investor/donor by charging minimal fees for registration and listing.
  • Additional avenue for Social Enterprises: Central and State governments till date have the biggest onus of achieving sustainable development goals. SSE will provide an alternate avenue for raising funds thereby encouraging new and existing social enterprises.


Socio Research & Reform Foundation (NGO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

Posted in FCRA, TAX, LEGAL | 1 Comment

SSE in India – International Scenario & Legal Framework (Part-I)

Finance Minister in her Budget speech in 2019 introduced the concept of Social Stock Exchange (SSE) in India, as a separate platform to enable non-profit sector to raise funds for itself.

International Scenario
Brazil was the first country to launch an SSE in the year 2003, followed by South Africa in 2006, Portugal – 2009, Canada, Singapore & UK – 2013 and Jamaica – 2019. However only SSE’s based in Canada, Singapore & Jamaica are active, indicating difficulties in sustaining SSEs.

Most of the international platforms have limited transactions, with limited opportunities, and mainly focussed on FPEs, rather than NPOs[1]. In contrast Indian SSE is working towards trading for equities issued by FPE and provides opportunities for NPOs to open up avenues for direct listing. It is also developing set of procedures to enable investors to identify those entities which have measurable social impact.

Legal Framework
We all are aware that SEBI provides an overarching regulatory mechanism for regulating securities market and protecting investors. SEBI was established through SEBI Act 0f 1992. In 2022, SEBI amended its various regulations to introduce overall a framework for Social Stock Exchange[2].

Under the proposed framework, SEBI offers following services under SSE:

  1. Recognition of a NPO as well as a For Profit Entity (FPE) to be recognised as a Social Enterprise
  2. Allows listing of a NPO without raising of funds
  3. Allows raising of funds by a NPO


Socio Research & Reform Foundation (NGO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

Posted in FCRA, TAX, LEGAL | Comments Off on SSE in India – International Scenario & Legal Framework (Part-I)

Can Indian Registered NGOs having FCRA registration establish its office outside India

Dear Sir/Madam,

Can Indian Registered NGOs having FCRA registration, establish its offices outside India for Resource Mobilisation.

Murali G

Posted in FCRA, TAX, LEGAL | 1 Comment

Guidance note on filing of FCRA Annual return (FC-4)

Para RefField NameField TypeNotes:
 Darpan ID :Auto PopulatedThis information is auto-populated as and when an entity enters the online platform using its user id & password.
1. (a)Name & Address       :Auto Populated
    
1. (b)FCRA Registration/Prior Permission:Auto PopulatedThis information is auto-populated as and when an entity enters the online platform using its user id & password.
 
2Details of Foreign Contribution (FC)
2 (i)   
(a)B/F FC at the beginning of the year:To be filledWhile no auto checks on validation of this infor, make sure this information is in agreement with closing balance of last FC4, although there is no automatic check on the accuracy of the same.
 
(b)Income during the year (i) InterestTo be filledPlease ensure this interest is aligned with Receipt & Payment A/c.
 (ii) Other Receipts from Projects/ActivitiesTo be filledAll other income, including sale of assets, etc. Pl ensure whatever income that is disclosed here is deposited in the FCRA Bank A/cs.
 
(c)FC rec’d during the FY  
 (i) Directly from foreign sourceTo be filledSource-wise Total FC amount rec’d during the year to be filled here. Ensure total under this Para and Total FC rec’d purpose-wise under Para 2(ii)(b) of this Form match.
 (ii) from a local sourceTo be filled
 
    
(d)Total Foreign Contribution (a+b+c)Auto-populated based on above dataPl ensure this figure is in alignment with total b/f + receipts in Receipt & Payment A/c.
    
2(ii)   
(a)Donor-wise detail of FC rec’dIndividual donor-wise details to be filled1. Under this column, individual donor-wise details of FC have to be given. Note the donor details will need to be selected from a drop-drawn menu. Pl note in case your donor is not included in this menu, then one will need to add the donor details (Name/Address /Purpose/Project Name/Amount, etc.). 2. Note, in case you add any donor with Indian address it will treat it as a Local donor and any FC rec’d from such donor would not be  included in the Purpose-wise total FC rec’d under para 2(ii)(b) below. This will mean that total FC rec’d as per para 2(ii)(b) and as per para 2(i)(c) above will not match. 3. Pl ensure mention purpose as mentioned in your FCRA registration (example, social/educational/religious etc.). Purpose would need to be mentioned under each FC rec’d under para 2(ii)(a)
(b)Cumulative purpose-wise FC rec’dData auto-populated based on details filled under 2(ii)(a)
    
3Details of Utilisation of FC
(a)Project-wise details of Utilisation of FCFill-up Utilisation amount Project-wise1. Pl ensure that total of project-wise Utilisation matches with toal expenditure on programs [reported under para 3(a)(i)] + admin [reported under para 3a(ii)] + purchase of assets [reported under para 3(b)] 2. Pl ensure total of Utilisation is aligned with total utilisation under Receipt & Payment.
    
(i)Utilisation as per aims/objectives of Assoc.Fill-up total programmatic UtilisationBasically this figure denotes total programmatic expenditure, but does not include any fixed assets procured from FC funds. In case program expenditure separately shown under Receipt & Payment, then it may be ensured that the disclosure at both places is aligned.
(ii)Administrative Exps. As provided under Rule 5Fill-up total Admin expenses1. This represents Admin Exps, as per Rule 5 and should not exceed 20% of FC rec’d. Again this expenditure should be included under para 3(a), i.e. project-wise expenditure. Therefore, Assoc should have one project which covers any Admin exps. Not covered under other projects. 2. Ensure Admin Exps should align with R& P if separately disclosed there.
(iii)Total (i)+(ii)This is auto-populatedExpenditure represents total programmatic & admin costs.
(b)Details of Fixed Assets purchased during the yearTo be filled in a Table format1. These assets should be included under Project-wise expenditure disclosed under Para 3(a) above.
  2. Under the column ‘Nature of Project / Activity’ one has to select from drop down menu options are between movable & immovable assets. Select appropriately. 3. Under Details of Fresh Assets fill up appropriate category of asset as per Fixed Asset schedule.
  4. Under ‘Objective of acquring fresh asset’ select from drop down menu – purpose out of social / education etc. as per your FCRA registration. 5. Under cost of fresh assets column, pl fill up cost of assets acquired during the year. 6. Ensure assets disclosed under this column are in alignment with R&P.
(ba)Details of Movable Assets created out of FCTo be filled in a Table format1. In case this data is matched with FA schedule and if there is a difference between figures indicated under (b) above and (ba), then give reason for same through a Note. 2. Description of Assets to be provided as per category mentioned under FA schedule. 3. Give details as per Gross Assets, as the Table does not include figure for depreciation. 4. For immovable properties, address of the property as well as plot size, etc needs to be mentioned.
(bb)Details of Immovable Assets created out of FCTo be filled in a Table format
   
(c)Details of funds transferred to other person / association.To be filled in a Table format1. Normally one does not expect any transfer under this column, this is to identify if any transfers made during the year to other associations, etc. who were prohibited after amendment under S.7 effective Sept’2020
(d)Total Utilisation (a)+(b)+(c)This is auto-populatedPl align with R&P – total payments covering programmatic, admin & fixed assets procured.
 
4Details of Unutilised FC  
(i)Total FC invested in FDs Pl align with R&P – total payments covering programmatic, admin & fixed assets procured.
a,b,cFD detailsTo be filled in a Table formatEnsure all details align with your R&P and Balance Sheet
dClosing bal of FDsThis is auto-populated 
4(ii)Unutilised FC  
 (a) Cash in handTo be filled in a Table formatEnsure aligns with R&P and Balance Sheet
 (b) Designated Bank Bal
 (c) Utilisation Bank A/c Bal
    
 (d) Total Unutilised (a)+(b)+(c )This is auto-populated 
5Details of foreigners as Key functionary / associated / workingTo be filled in1.    In case you have any foreigners in Board or working in your organisation. You are required to disclose this information. 2.    Although this may mean a query from FCRA Dept.
6Details of Land & Building remaining Unutilised for 2 yrs.To be filled inIf such properties are there, one would need to disclose the details of such properties, as well as reason for non-utilisation.
 
7Details of Designated, Another FCRA A/c & Utilisation A/cs to be providedDetails of designated & Another FCRA A/c to be filled,  Utilisation Bank A/cs are auto populated based on information posted on portal 
    
8Declaration on 15 different clausesNeed to choose each clause by selecting Yes/No – wherever yes is select, it would require to give further details. 

Declaration needs to be signed digitally (by pasting digital signature) by Chief Functionary.

Seal of the Organisation also needs to be uploaded.

Following documents further required to be uploaded
i.    Chartered Accountant Certificate (Max 1 MB)
ii.   Bank Statements of all the accounts duly certified by a Bank Officer (Max 10MB)
iii. Audited FCRA Financial Statements (incl. Bal Sheet, I&E & R&P) (Max 50MB)
iv. Separate signed declaration by Chief Functionary (Max 1 MB)

For instructions on uploading of these documents, signatures, etc. pl go to instructions on FCRA website.

https://fcraonline.nic.in/Home/PDF_Doc/FCRA-Scanning-Instructions.pdf

Posted in FCRA, TAX, LEGAL | Comments Off on Guidance note on filing of FCRA Annual return (FC-4)

Unspent grants cannot be treated as Income

To give more clarity to Civil society sector, regarding taxability of unspent grant, a recent decision by Courts has held that unspent grant cannot be treated as income. In a recent decision in JM Financial Foundation vs CIT[1]Mumbai Income Tax Tribunal has relied on the case of DIT vs Society for Development Alternatives.

CIT (Exemptions) added unspent grants of JM Financial Foundation received during the year as Income. Tribunal after considering the arguments of CIT (E) and assessee, decided that the income of the Trust was to be spent on Ashoka University as per the directions of the donor and hence cannot be stated to be income of the year. It relied on the case of DIT vs Society for Development Alternatives where it was held that the respondent assessee had received grants for specific purposes / projects from the government, NGOs, foreign institutions, etc. These grants were to be spent as per the terms and conditions of the project grant. The amount which remained unspent at the year-end, got spilled over to the next year and was treated as unspent grant.

The Tribunal noted that the grants are not free grants, but the donor require several reporting from the Trust for utilisiung the grant. These grants are can be further subjected to audit by the donor and if remains unspent at the end of the project has to be refunded back.

Thus, these are not free grants which the assessee could use according to its free will, but depends upon the donor requirements. case was on not utilised, remained unutilised and could not be treated as income of the Trust. Thus the matter was decided in the favour of assessee. Relying on the above principles mentioned in Development Alternative case, the Tribunal decided the matter in favour of the assessee.


[1]https://itatonline.org/digest/verdicts/jm-financial-ltd-v-dy-cit-itat-mumbai/

Posted in FCRA, TAX, LEGAL | 1 Comment

Is it mandatory for non-FCRA NGOs also to register for DARPAN ID

I have a question, our organization Center for Communication and Change India is registered as Trust (NGO) and we do not have FCRA so far. Is it mandatory for non-FCRA NGOs also to registered on the DARPAN portal of NITI Aayog and get a valid unique ID with updated details to receive funds from CSR or local UN organizations?

I would appreciate your valuable advice.

Regards,

Rajinder Mehra

Posted in FCRA, TAX, LEGAL | 4 Comments

FCRA Notice asking to file Annual Returns already filed.

Dear Sir,

We have received a notice from FCRA department asking to file Annual Returns for some previous years.
However, we have been regular in filing the returns within due date and all these returns are also appearing on the FCRA Portal, still this notice is stating that this is the last chance to submit it.
What does it meant for?

May I request you to throw some light on it?

Regards
Prabhat Kumar

Posted in FCRA, TAX, LEGAL | 1 Comment

How to show depreciation in FCRA Annual Return

Dear Sir,
Greetings!

We are in the process of filing FCRA Annual Return and facing a challenge
to update the forms related to list of Movable and Immovable Assets.

In the pop up window ( screenshot given below ), we have only 4 fields to enter – opening balance, assets bought during the year, assets disposed during the year and closing balance. We do not have any field to update for the depreciation value in the portal. Kindly advise where to mention the depreciation value so that the closing balance get matched with the current value of the assets ( As on 31st March 2023)

Rgds

Vimala D

Posted in FCRA, TAX, LEGAL | 3 Comments