Admin Expenses under CSR

Dear Sir,

We have a query from a Corporate partner on whether they can pay a registered charity organisation, its 10 per cent administration fees to run the projects, because the recent CSR bill caps administration expenses to 5 per cent.

As we understand the current CSR rule. Provision of administrative expenses of 5 per cent in the recent CSR rule is been made to enable corporates to build their internal capacity  and / or consult with for profit organisation for CSR strategy / implementation plans etc. Once the corporate donate its 95 per cent CSR funds to a registered charity organisation, the registered charity organisation can charge 10 per cent admin fee from / within the 95 per cent donation received from the corporate to run the project. This does not violate the 5 per cent administration expenses clause of CSR rule.

Please do share your views on the same.

Thanks and regards,


Posted in CSR | 1 Comment

Is section 50C applicable while calculating net consideration u/s 11(1A)?

As per section 50C of income tax act, if the consideration receivable on transfer of land and building is lower than the stamp duty value than such stamp duty value is to be considered as consideration for calculation of capital gain.

As per section 11(1A) of the act, if any capital asset is sold by the society than capital gain is taxable in the hands of socity provided that the net consideration on transfer of such asset is not invested in procurement of another asset.

Now the question is to take stamp duty value for calculation of capital gain in case of society or not?

Rahul Gupta

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Ten FC Donors Under Prior Permission

For quite some time, Indian banks have been asked by RBI to refer some international remittances to FCRA Wing. The RBI has now issued a general circular on this. Remittances from following donors are subject to prior-approval from Ministry of Home Affairs:

  1. Danish International Development Agency (DANIDA)
  2. Danish Institute of Human Rights (DIHR)
  3. Catholic Organization for [Relief] and Development Aid (CORDAID)
  4. Dan Church Aid (DCA)
  5. Mercy Corps, USA
  6. Inter Church Peace Council _ Pax Christi (IKV- PC) , Netherlands
  7. HIVOS, Netherlands
  8. ICCO Stretegische Samenwerking (ICCO), Netherlands
  9. Green Peace International
  10. Climate Work Foundation (CWF), US

If you are receiving funds from one of these donors, be prepared for long delays in credit of the funds to your accounts.

Ref: RBI/2014-15/408 DCBR.BPD (PCB/RCB) Cir.No.13/14.01.062/2014-15 dated January 15, 2015; Available at

Source: AccountAid

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Is Income tax Paid treated as application of Income?

As per section 11 of the income tax act, an organization is required to apply 85% of total receipts during the year. However it couldn’t be applied during time limits mentioned in the relevant section of the act and accordingly tax was paid on such underutilized amount.

Now my query is whether such income tax paid shall be treated as application of income during the year in which it was paid?
Posted in FCRA, TAX, LEGAL | 3 Comments

Do any organization is required to file returns if it has received FCRA funds by Prior permission/ prior approval?

Do any organization is required to file returns if it has received FCRA funds by Prior permission/ prior approval?


Posted in FCRA, TAX, LEGAL | 3 Comments

Relief to NGOs – a decision by Chennai Income Tax Tribunal

Recently Chennal Income Tax Tribunal has given a judgement reversing the Income Tax Dept.’s order of cancelling an NGO’s (SAE India) section 12A registration because it has crossed the threshold limit of income (currently Rs 25 lakhs) under S. 2(15).

As many of you would know that under S.2(15) of Income Tax, an NGO whose objects falls under ‘the public utility clause’ income is currently limited to Rs 25 lakhs. Several Inocme Tax officers interpret this as that S.12A should be cancelled once this limit is crossed. This as per the judgement is a wrong interpretation.

The Honourable ITAT observed that assessee’s objects and activities (to serve as a forum where Engineers, Scientists, Technologists and Innovators in mobility engineering field can exchange ideas and learn from each other experience) are genuine and registration cannot be cancelled merely because receipts are exceeding the threshold limit.

It further opined that the IT Officer in case the limit u/s 2(15) exceeds the threshold amount than s/he has a right to levy tax in respect of these receipts but not to cancel the 12A Registration, which can be done only if the activities are not for general public utility.

We have provided the details of the above case, it may be possible that a number. of NGOs may be facing similar situation they can rely on this case to get the necessary benefit.

Citation :SAE India v/s DIT(E) (ITAT Chennai), I.T.A. No.386/Mds/2012, 17th October, 2014 

Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail:; website:

Posted in FCRA, TAX, LEGAL | Tagged , | 8 Comments

Smart City Means

Dear Friends,
Wish you all Happy Sankranthi / Pongal!

Smart Cities should satisfy certain basics without which other smart elements established at whatever cost would not be sustainable. The Central Smart City -project plan should detail the strategies to achieve the basics and other smart elements.

Some CSOs are reported to be working on the subject issue and awaiting the 100 smart city-project plan to be released by the U D M shortly.

It should be recognized that every City, smart or otherwise, forms part of a watershed / River basin. No activity within the Cities should affect the ecology of the downstream areas. Proper resource and effluent / waste management is a must for environmental and ecological health within and downstream side of Cities.

The basics:
The interests of slum dwellers, migrant workers, safety of women and children, affordable good quality drinking water, affordable and effective health care and education for all, nutritional security through efficient PDS  to support urban poor, quality-up gradation of Government and Municipal Schools, opening many more Central Schools and Polytechnique colleges…..

Most importantly gender justice and child rights are well taken care of.

In a smart city, all the traditional Tanks are rejuvenated, pollution of every kind is zeroed and at least 20% of the smart City is under green cover.

Other important elements:
Segregation of domestic waste right at home into different colored bins (bio-waste, recyclables such as paper/card board/packaging, rigid and flexible plastics and non-recyclables for safe disposal) world class waste collection system and transportation of the same directly to the recycling units. Special system for hazardous waste (Chemicals / medicines, CFLs, glass, electrical and electronic items, mobiles and related accessories, old air conditioners, refrigerators, water / Air coolers, etc.) collection and transportation to recycling units should be given priority – Reduce use of resources, Recycle and Reuse.

Domestic energy and water efficiency:
Interest free loans on attractive repayment terms for replacing the old inefficient electrical and gas based appliances.

Well trained teams for enhancing domestic energy efficiency to visit every home  for suggesting appropriate measures (Mummy ho ya daddy ho….Ad is in the right direction – catch children and the youth !) Educate school children and college youth on resource and waste management as part of compulsory general education.

Low flow rate – tap heads in kitchens, wash rooms and domestic gardens and garages for drastically reducing water wastage.

Recharging groundwater in cities, roof rain water harvesting  and efficient storm water drainage system should be prioritized.


Most of the above mentioned measures form the joint responsibilities of the Citizens / Corporates / Municipalities / State and Central Governments.

Transportation, power and building (individual / businesses / Industries / establishments  etc,) sectors and e- governance that make a City smart need to be addressed separately.

Civil society need to address the subject issue on a priority basis before our Governments finalise things.


Posted in General | Tagged , | 2 Comments

NGOs found receiving Foreign Contribution without FCRA permission banned

MHA has blocked funding of 4 more organisations in India after Greenpeace. These are Avaaz, Bank Information Centre, and Sierra Club. These organisations neither had prior permission nor registration. Infact some of these NGOs even received funds in the personal accounts of their employees.

MHA has now asked RBI to stop all their fundings.

All of us are aware that no NGO should receive funds without necessary permission from FCRA. Such organisations only bring bad name to the NGO sector and bringing in disrepute the name of a large number of NGOs who go through the rigours of complying with difficult FCRA norms.

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

Posted in FCRA, TAX, LEGAL | 1 Comment

Is Society Registration renewal required?

Dear Sir

Our organisation was registered under 1860 act Fasli 1350 dated 9-4-1992 and Renewal was completed in 2001 Year in Hyderabad.Now All documents were sent to Districts from last 4 years onwards.Now we submitted for Renewal with All supporting documents to District registrar. They are not responding and Some times They are telling like Long time societies not possible to it correct if it is correct what is is the alternate possessor

Shramika Vikasa Kendram
Telangana-State, India

Posted in FCRA, TAX, LEGAL | 11 Comments

FCRA Renewal

Dear Friends,

I would like to know if the renewal application for FCRA has to be made online or manual. Also, there is a deadline of April 30, 2015 prescribed for filing the renewal application but is there a stating date as well. If no such date is there, kindly let me know by when the NGOs can start applying for renewal.

Thanks and regards,

B V Soma Sastry

Posted in FCRA, TAX, LEGAL | 3 Comments