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
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
Dear Sir,
We are in a dilemma in interpretation of two terms under the amended FCRR 2011. A hypothetical case is presented here:
1. A person XYZ is an employee of organisation ABC which is registered Trust/Society. S/he is invited by a Foreign organisation PQR which declares itself as ‘…a scientific, Political, and cultural organisation founded in xxx. It is an international network of scholars, health workers, and activists…”
2. Her/his travel, accomodation and other expenses are being met with by another foreign organization EFG. This organisation EFG declares itself as ‘ … one of the six major political foundations in the YYY tasked primarily with conducting political education both at home and abroad.”
3 The organization ABC has FCRA renewal application under process.
4. The organization ABC received substantial grant from State Govt. during past 10 years.
My dilemma is reflected in the following questions:
a) whether XYZ is a public servant as per FCRR 2011/FCRA 2010
b) whether XYZ comes under a ‘foreign hospitality’ as her travel, accommodation etc was paid by a political organisation for a conference organised by a political organisation
c) if it is what procedure should be followed, an NOC is essential from the Chief Functionary
d) if violated, what corrective measures need to be taken, is declaring in FC2 is adequate
e) what is the interpretation as the organizer and the host which are foreign sources have political education in their objectives
Dhruv
Secretary
VACHAN
CBDT has clarified that while filling Form 10B & 10BB, details are required to be given of those persons who have contributed substantially. Present language in the Form defines ‘persons who have made a substantial contribution’ as any person whose total contribution upto the end of the relevant previous year exceeds fifty thousand rupees (as referred to under S.13(3)(b) of the Income Tax Act. Considering the language in the Act is such which would mean providing details of all persons who have contributed Rs 50,000 or more from inception of the NPO. Compiling this information, would not be an easy task, hence many NPOs and their advisors approached CBDT, stating difficulties that they are facing in compiling this information.
CBDT after due examination and consideration, has clarified that for the purpose of Form 10B & Form 10BB, persons who have contributed substantially during the Financial Year only needs to be disclosed.
Further CBDT has clarified that as far as ‘relative’ for such persons is concerned it may be provided to the extent information is available. Similarly details of concerns in whom such person referred to have substantial interest may be provided to the extent available.
This provides some relief both to the NPOs and their auditors. However bigger question is this definition has been there on the statute for long, why not change the definition in the statute, if it is found difficult to comply. (click here for circular)
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
Last Date for applying for Re-registration of 12A & 80G
First of all anyone who havestill not applied for re-registration under S.12A & S.80G must apply by 30th September 2023. If you have not done so, please apply within the deadline.
Provisional to be treated as Registration / Approval
Of course, in most cases people have not only applied but received registration both under S.12A & S.80G for 5 years. However, the Dept. while issuing re-registration ordersin Form 10AC included the words ‘Provisional’ in the order. This caused a lot of confusion, as many persons mistook it that they need to reapply for registration. That is not the case.
CBDT has issued a clarification in this regard vide Circular No. 11 of 2022 dt 3-6-2022. The clarification acknowledges the error it states
(ii) where due to technical glitches, Form No. 10AC has been issued during FY 2021-2022 with the heading “Order for provisional registration” or “Order for provisionalapproval” instead of “Order for registration” or “Order for approval”, then all suchForm No. 10AC shall be considered as an “Order for registration or approval”
So, in case your Form 10AC has words Provisional, but if it is for 5 years, need not worry. Get the above circular from the link above for any future reference.
However, in case any organisation is yet to apply for re-registration, please do immediately 30th September’23 is the last date.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
MHA has amended the Foreign Contribution Regulation Rules, 2011 through a notification issued on 22nd September 2023. Through this notification MHA has revised the FCRA Annual Return (Form-FC4). Currently details of purchase of fresh assets purchased are required to be provided para 3b.
Now the new paras 3ba & 3bb in the Form of Tables have been added.
Table under 3ba requires that movable assets procured (like: computers, furniture, office equipment, vehicles, etc) are now to be disclosed giving following details:
From above it does appear that one need not give details of individual assets, but only category-wise details of assets that have been capitalized during the year.
Table under 3bb requires that immovable assets acquired as at year end be disclosed under this Table.
In both cases, details of assets as at year end has to be provided, that means in case of immovable property each property has to be mentioned, which for movable assets category-wise details of assets brought-forward as well as acquired and disposed during the year have to be provided.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
A Relief, even if a temporary one, to all those who are waiting for their FCRA renewal.
FCRA authorities have extended again extended the validity of existing FCRA registration certificates upto 31st March 2024.
This is applicable to all those who have applied for FCRA renewal before expiry of 5 year period from the date of previous FCRA registration. In case renewal application is refused then the validity of the certificate shall be deemed to have expired on the date of refusal of application of renewal. In such a situation organisation would not be eligible to either receive or utilize FCRA funds after such date.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
Dear Sir/Madam,
I am Noel Sushant Gole from Belagavi Karnataka. I would like to thank you for your website and your blog and they are very helpful. I would need a few queries to be answered by you if you do not mind.
If a Educational institution created partly out of FCRA Donations and partly put of donations from CSR funds of companies, then the income generated out of the said Educational Institution is to be treated as Foreign Source in entirely or is it to be taken proportionately as foreign source Other income?
Do the trustees need to file return under Lokpal as of 2023, The last post I saw in your website was of a 2016 post.
The school general running account needs to be reported as utilization account or not?
If new school is opened out of the profits of the original school then does the new school also fall within FCRA and the new school income is to be treated as other income in FCRA
Regards,
Noel Sushant Gole
Belagavi, Karnataka.
Dear Members,
Last date for filing of Form 10BD approaching fast, tomorrow 30th June 2023 is the last date.
We hope most of organisation have filed Form 10BD, if not yet filed, file your Form 10BD before the last date.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
Form 10BD(Annual return for declaring S.80G receipts): As many of you would know that for FY 2022-23, Form 10BD for declaring donations received under S.80G is required to be submitted to the authorities by 31st May 2023. There is some good news, timeline has now been extended to 30th June 2023.
Form 10A/ 10AB (Application for provisional /renewal of registration under S.12A/80G): Earlier the last date for filing these applications were 30-09-2022 / 25-11-2022, as the case maybe. We are happy to report that these have now been extended to 30-09-2023. This is a great news for NGOs who have not applied earlier and were fearing orders under S.115TD (accretion of income). Such NGOs must utilize this last opportunity and immediately apply for renewal / provisional registration before the due date.
Form 9A / 10B (Furnishing option for Deemed application / Accumulation) As many of you would know that the govt has now advanced due date for filing of these applications by two months (i.e. 31st August 2023), compared to earlier requirement of filing the same by the due date of filing the income tax return (31st October). While the govt has not relaxed this date, however it has stated that in case these Forms are filed before the date of filing the return (i.e. 31st October 2023), there will be no loss for claiming application / accumulation in the NGO’s Income Tax return.
(click here for circular)
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
