More information about 80G and S.35 AC

Dear Sir,
I have some doubts about the 80 G receipts and the IT 35 Ac and 35 i, i & ii.

What is the limit of the receipts under the 80 G.
What is the relevance of the Indian IT exemptions for the foreign donors.
Please share your comments.

Mohankumar

CADRE- India
(Center for Action Development Research and Education in India)
Kurumathoor, Kuzhithurai, PO, Kanyakumari, Dist. Tamil Nadu. India. PIN. 629163

Posted in FCRA, TAX, LEGAL | 2 Comments

NGOs and their overseas operations

Diwali greetings to SRRF colleagues!

Writing with a request for some guidance:

As part of one of our research studies, we are looking at Indian CSOs engagement with development cooperation. We have interviewed CSO voices some of who mentioned difficulties in terms of CSOs getting involved overseas to engage with development cooperation (in partnership with other agencies). In this regard, two specific queries were:

  • Does the FCRA limit or prevent Indian CSOs from establishing subsidiary offices overseas? If so, in what way? Are the limitations strictly in terms of income tax liabilities?
  • What does the Income Tax Act/ Direct Taxes Code state with regard to the above issue?

Would be most grateful if someone could throw some light on this?

Best wishes,
Pooja


Pooja Parvati
Research Manager, Oxfam India

Posted in FCRA, TAX, LEGAL | 1 Comment

Cash payments of more than Rs 20,000 prohibited by FCRA Department

FCRA Dept has come out with a Circular dated 21st October 2014, as per which that NGOs utilizing funds out of their FC Designated accounts and FCRA Utilisation Accounts must utilize these funds through account payee cheques or through demand drafts. Any payments made in cash could result in scrutiny.

Thus please bring it to notice of all NGOs (share on facebook by clicking send link) that you are associated with to shun cash payments to the extent possible, but certainly no payments above Rs 20,000 should be made in cash.

You can access the circular from the following link:                                                   http://www.srr-foundation.org/circulars/fcra_notification_21-10-14.jpg

__________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Telefax: 91-11-25722044, 25821088, 25817157
e-mail: socio-research@sma.net.in; website: http://www.srr-foundation.org

Posted in FCRA, TAX, LEGAL | 1 Comment

New Ideas required for improved learning at Schools

While everyone acknowledges the success of enrollment achieved (as high as 96% in some states), however most of us are also aware of the decline in learning standards in India, which ASER survey identified (earlier covered by SRRF visit http://blog.srr-foundation.org/?p=1646 ). There have been a few experiments undertaken by NGOs in Gujarat, which could provide indicators on how the problem could be tackled. These have been covered in an article published recently in Indian Express.

First the context, ASER survey identified that in rural Ahemdabad 41% in classes I & II are unable to read letters or words, and 35% cannot recognize numbers 1-9. The ASER Report also identifies that children in private school were much better off. For example, it found that while in Govt schools only 13% of Class III could subtract, in private schools it was 34%. Some have argued that comparing govt schools with private is not fair, since private schools being more expensive, normally would attract students from more educated and privileged background.

Hence a comparison for 2009-2010 was made between non-formal free schools run by an NGO called Gyanshala in slums of Ahemdabad and schools run by Ahemdabad Municipal Corporation (AMC). In similar tests for language and mathematics Gyanshala students scored 80 out of 100 while AMC students scored only around 60. However for non-standard questions (for which students were not tutored) difference was huge (70-80% for Gyanshala students and 20-30% for AMC students).

Gyanshala’s instruments for reaching these results include hiring of 12th pass students and train them intensively for 30 days annually. Further they are regularly supervised and supported by a dedicated team and curriculum regularly updated. This keeps teachers motivated and students also eager to learn.

Perhaps there is a lesson in this for education authorities on how to find innovative solutions. Perhaps CSR professionals need to identify how their programmes could help in filling these gaps in government school programmes, rather than running their own schools for a larger impact.

  • Based on an Indian Express article dt. 20 Sep 2014Schooled Against Innovation

___________________________________________

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

Posted in Education | Comments Off on New Ideas required for improved learning at Schools

STATUS OF S.25 COMPANIES UNDER NEW COMPANIES ACT 2013

Dear Sir:

I have a two-fold query regarding Sec 25 Companies under the Companies Act of 1956 (now presented as Sec 8 Companies under the Companies Act 2013):

1. Do existing Sec 25 Companies have to re-register under Sec 8, or are they subsumed under the new law, and treated as Sec 8 Companies by extension? I ask, because the existing licenses clearly note that the company is registered under Sec 25 of the Companies Act). Do Sec 25 Companies now automatically stand converted to Sec 8 Companies – and if yes, what is the documentary evidence of this that the Company needs to produce or quote?

2. How does the changed wording regarding remuneration to members impact Sec 25 companies?

Compare Clause 6 of the Sec 25 license which says:”Noting in Clauses (3), (4) and (5) shall prevent the payment by the company in good faith, with the previous approval of the Central Government, of reasonable and proper remuneration to any of its members in return for any services (not being services of a kind which are required to be rendered by a member), actually rendered to the company;” and Clause 5 of the new Sec 8 license, which reads: “that nothing in clauses (3) and (4) shall prevent the payment by the company in good faith of prudent remuneration to any of its members in return for services (not being services of a kind which are required to be rendered by a member), actually rendered to the company.”

I especially note the crucial dropping of “with the previous approval of the Central Government” and the substitution of “reasonable and proper remuneration” by “prudent remuneration”.
Any comments would be deeply appreciated!

(5) that nothing in clauses (3) and (4) shall prevent the payment by the company in good faith of prudent remuneration to any of its members in return for any services (not being services of a kind which are required to be rendered by a member), actually rendered to the company;

Warm regards,
Ramakrishnan

N.Ramakrishnan
Ideosync Media Combine
H.No.1381, Sector 37
Faridabad – 121 003
Haryana – India

Posted in FCRA, TAX, LEGAL | Tagged | 3 Comments

Is grant received from UNWOMEN exempted under FCRA?

Dear All,

lease let me know if grant received from UNWOMEN is exempted under the FCRA law.

Thanks!

Satya

Posted in FCRA, TAX, LEGAL | 5 Comments

Help line for filing of FCRA online return

मान्यवर ,

सानुरोध पूरक कहना है की दलित विकास अभियान समिति , बिहार मे वंचित वर्गो के बीच सेवारत है | Socio Research & Reform Foundation हमे किस तरह की सहयोग प्रदान कर सकती है ,प्लीज हमे मार्गदर्शित किया जाय ,

साथ ही आपकी वेब देखकर मुझे येसा महसूश हुया की अब हमारी परेसानी दूर हो जागी, हमारी मुख्य परेशानी एफ सी आर ऑनलाइन रिटर्न भरना है जो नहीं हो प रहा है , मई चाहूँगा की आप हमे मदद करे |

धन्यवाद|

धर्मेंद्र कुमार

निदेशक

दलित विकास अभियान समिति

Posted in FCRA, TAX, LEGAL | 3 Comments

FCRA Dept is sending notice to almost 10,000 organisations for failing to file FCRA returns

FCRA Dept is in the process of sending notices to as many as 10,000 organisations all over India who have not filed their annual returns during any financial year during FY 2009-10, 2010-11 & 2011-12. It is asking organisations who have filed returns for these years to write to the Dept with evidences that returns have been filed.

Good thing is that learning from its past experience the Dept has not enmass cancelled all these registrations, but is in the process of sending individual notices.

It is sending notices to organisations individually. But the catch is that it is sending the notice at the address last available with it. It is possible that addresses at Dept. may not have correct addresses or even end up sending it to wrong addresses, however Dept is likely to assume that the organisation does not exist and may go ahead with cancelling the registration.

Hence we suggest that all NGOs please check, in case name of your organisation exists on this list and if so, please immediately write to the Dept. with all evidences that you may have regarding filing of your returns for the three years mentioned above.

__________________________________
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

Posted in FCRA, TAX, LEGAL | Tagged | 3 Comments

Can we deposit refunds from travel agent in to FCRA A/c?

Dear Sir,

I had the opportunity to attend one of your seminars recently Ahmedabad. I am writing this mail seeking clarification on one of the matters concerning FCRA.

We recently made a booking through a travel agent for an FCRA project from our FCRA bank account. Due to some reason, we have had to cancel the booking. We are unlikely to transact again with the same travel agent in future and so cannot adjust the refund against future booking. In this context if the agent offers us a cheque of refund amount, should we deposit it in the FC bank a/c or non- FC a/c? What are the implications in either case?

Looking forward to your expert advice. Thanking you in advance.

Regards,
Richard Mascarenhas
Sense International India
Working with deafblind people
Administrative Block, Andhjan Mandal Campus
Vastrapur, Ahmedabad – 380 015. Gujarat, India.

Posted in FCRA, TAX, LEGAL | 3 Comments

Applicability of Service Tax

Dear Sir,

My organization is working in Orissa on disaster management. We availed services from one agency (local based) and their total bill throughout the financial year crossed Rs. 14 lakhs . Agency is not claiming the service tax. Please let me know , if agency does not claim service tax if their total bill amount exceeds Rs. 10 lakhs in a financial year then whether reverse liability will come on us ? Since we are registered NGO of orissa and we do not want to violate any rules. Whether paying service tax liability will come on us at any point of time ?

Sincerely

Rajiv Kohli
rajivkohli2002@yahoo.in

Posted in FCRA, TAX, LEGAL | Tagged | 2 Comments