HEAVY PENALTIES FOR LATE FILING OF FCRA RETURN

The Ministry of Home Affairs has issued a notification (Notification No: 939, 29/04/2013) to the organisations registered under the Foreign Contribution Regulation Act to submit their FCRA Returns on time.

Accordingly any delay in filing of Annual Return will attract penalty ranging from two to five per cent of the total foreign contribution received any NGO during the year.

The following table describes the penalties on non filing of FCRA return and officer competent for compounding:

S. No. Offences Amount of Penalty Officer competent of compounding
1. Non-furnishing of FCRA return upto 90 days after 31st December every year Penalty of 2% of the amount received during the Financial year or Rs.10,000/-, whichever is higher. The Director or Deputy Secretary in charge of the Foreign Contribution (Regulation) Act Wing of Foreigners Division in the MHA.
2. Non-furnishing of return after 91 days upto 180 days after 31st December every year Penalty of 3% of the amount received during the Financial year or Rs.20,000/-, whichever is higher. The Director or Deputy Secretary in charge of the Foreign Contribution (Regulation) Act Wing of Foreigners Division in the MHA.
3. Non-furnishing of return after 180 days after 31st December every year Penalty of 5% of the amount received during the Financial year or Rs.50,000/-, whichever is higher, with Rs. 500/- per day of delay after 180 days. The Director or Deputy Secretary in charge of the Foreign Contribution (Regulation) Act Wing of Foreigners Division in the MHA.

We also thank Account Aid for bringing the above information to our notice.

_______________________________
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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9 Responses to HEAVY PENALTIES FOR LATE FILING OF FCRA RETURN

  1. A very important piece of information.
    Many thanks.
    Thussu

  2. Ashok Shamala says:

    Dear Friends
    Greetings from Ashoka NGO!

    I would like to know about Fc-6. Returns latest information regarding Late filling of FC-6 Returns. Why they are heavy penalties amount .

    Thanks You Friends

    With Peace

    Ashoka NGO

  3. Uday Chaturvedi says:

    Dear Friends,

    Blessed are those NGOs who do not receive foreign funds even under prior permission – nothing to do under FCRA and not much with MOHA!

    As the time given for filing FC-6 return is full nine months, there is no justification for any NGO/CSO to delay the process.

    Some NGOs inadvertently invite taxing troubles by using terminology meant for”For Profits” in their financial statements and / or by violating norms concerning unspent balances. Beware and be aware of the political hounds behind IT who may turn blatantly benign/a blind-eye over Corporate fraud but turn a prude and not spare NGOs/CSOs even for purely technical mistakes.

    If Donors are pinched for our delays and any other omission or commission, we get aborted.

    Udayashankar

  4. Rajneesh Kulshreshtha says:

    Good morning.

    If we are not registered in FCRA but have been granted prior permission and this
    year we have not received any FCRA fund(fund from outside country) whether we
    require to file FCRA return this year.

    Thanks

    Rajneesh Kulshreshtha

  5. B V Soma Sastry says:

    Dear Friends,

    Greetings from Hyderabad!

    This is the latest that has come form the MoHA on the filing of FC-6 returns. I feel that the ministry is justified in passing such an order as statistics prove that almost 40% of the FCRA registered organizations do not file the returns on time or do not file at all. There could be several reasons behind not filing but as law abiding citizens / organizations, we are expected to submit the returns as prescribed by the MoHA. As per the FCRA, even nil returns have to be filed if no FC money is received. This is definitely better than cancelling the registration.

    Let us hope that the now the fear of penalty will atleast drive people to follow the law.

    Thanks and regards,
    _____________________________________
    B V Soma Sastry
    Director – Finance and Admin
    Centre for World Solidarity
    12-13-438, Street No. 1, Tarnaka
    Secunderabad 500 017
    Andhra Pradesh

  6. Nimitta Bhatt says:

    Dear friends,
    we usually file the fc return prior to June every year. This communication of yours says 30 days after december..!! have they changed the year from financial year to calendar year? please tell us..

    Nimitta Bhatt

    • Subhash Mittal says:

      –> Nimitta: FCRA annual returns are to be filed as earlier (i.e. before 31st December). An NGO gets about 9 months to file the return, in case you are doing earlier, please continue to do it. There is no change in the situation. Only change is that now department has decided to impose penalties for delayed filing.

      –> Rajneesh: Annual Return in Form FC6 has to be filed whether for prior permission or Registration. Only difference is that in case of Prior Permission Return is still filed manually and not on-line.

      Please make sure that you must file your returns regularly, even if nil, otherwise apart from penalties, you could face problem when going for registration / renewal.

      Hope above clarifies.

      rgds

      subhash

    • B V Soma Sastry says:

      Dear Namitta,

      Greetings!

      Please note that FC-6 has to filed within nine months after the completion of the FY i.e. for the FY ended 31.03.2013, the FC-6 has to be filed on or before 31.12.2013. Therefore the penalties will be applicable to organizations not filing FC-6 from 01.01.2014.

      Hope I have been able to clear you doubt.

      Thanks and regards,
      ___________________________________
      B V Soma Sastry
      Director – Finance and Admin
      Centre for World Solidarity
      12-13-438, Street No. 1, Tarnaka
      Secunderabad 500 017
      Andhra Pradesh