Huge relief to FCRA Pentities for late filing of returns

Posted on June 27, 2016 by SRRF

FCRA Dept has come out with a notification No. 1521 dt 16 June 2016 slashing compounding Fees for late filing of the return.

As per the new notification, following are the new slabs for the penalties.

S. No. Offence Penalty amount
1. Non-furnishing of Annual Return for 3 months after 31st December 2% of FC rec’d during the year or Rs 10,000 whichever is less
2. Non-furnishing of Annual Return after 3 months but upto 6 months after 31st December 3% of FC rec’d during the year or Rs 50,000 whichever is less
3. Non-furnishing of Annual Return after 6 months but upto one year after 31st December 4% of FC rec’d during the year or Rs 2 lakh whichever is less
4. Non-furnishing of Annual Return after 1 year but upto 2 years after 31st December 5% of FC rec’d during the year or Rs 5 lakh whichever is less
5. Non-furnishing of Annual Return after 2 year but upto 3 years after 31st December 10% of FC rec’d during the year or Rs 10 lakh whichever is less

It may be noted that the major reduction in penalties is due to replacing of phrase ‘whichever is more’ to ‘whichever is less’. This will be a major relief as earlier penalty procedures were amounting to lakhs and lakhs of penalties, even forcing organizations to abandon their organisatons.

The notification also states that in all those cases, where penalties have already been imposed using the old rates, nothing can be done. Once again an arbitrary decision, not based on legal principles.

____________________________________
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

This entry was posted in FCRA, TAX, LEGAL. Bookmark the permalink.

5 Responses to Huge relief to FCRA Pentities for late filing of returns

  1. Anil K Singh says:
    June 28, 2016 at 6:29 am

    My question related with this amendment are whether similar penalties are imposed by Ministry of Company Affairs on registered company if they are not filling their returns on stipulated time. Data of companies shows that more than 80 percentage of companies are not filling their annual returns and our Government is not doing any thing to them, then why such heavy penalties are imposed on NGOs?

    • Subhash Mittal says:
      July 2, 2016 at 8:13 am

      Anil Singh ji, welcome to SRRF Dialogue. Your criticism of Govt intentions is well understood. You are as good a person to answer that question as any other.

      warm rgds

  2. Paresh says:
    June 27, 2016 at 4:59 pm

    Hi

    Thanks for the update. can you please post link for the original notification.

Comments are closed.