Implications if NGO not registered under 12A

Dear Friends

  1. Is it legally valid to provide a Grant-in-Aid to a Registered Federation of Self Help Groups for which 12A is Applied For and awaited.
  2. Funds are domestic in nature and raised by the Donor Organisation.
  3. Does the Donor organisation, another registered society, attract any Direct or Vicarious liability?
  4. Would the Donor organisation be violating any law,  if providing such a Grant and lose any of its registrations (Society registration, 12 A, 80G and such others).
  5. What Statutory/Tax liability would the Recipient organisation attract if it were to receive such a grant towards Capital Equipment Purchase and Start-up Capital for Income Generation Activity (Value Addition/Collective Livelihoods) among its constituent members.
  6. Is it correct to state that such Tax Liability would be attracted only if the Nett Profit (Income less Expenditure) is over Rs.2.50 lakhs in the corresponding Financial Year.

A quick revert would be excellent.



Posted in FCRA, TAX, LEGAL | 2 Comments

Migration of FCRA Bank Account with PFMS Compliant Bank by 21st January 2018‎

FCRA Department vide its circular dated 21/12/2017 has made it mandated all ‎individuals / organizations who receive contribution under the FCRA, 2010 to ‎migrating their designated FCRA Bank Account with the PFMS (Public Financial ‎Management System) compliant bank, as per list given below, by 21st January 2018. ‎(click for circular)

List of PFMS compliant bank given below: ‎
‎1.‎ Abu Dhabi Commercial Bank ‎
‎2.‎ Allahabad Bank, ‎
‎3.‎ Allahabad UP Gramin Bank ‎
‎4.‎ Andhra Bank ‎
‎5.‎ Axis Bank ‎
‎6.‎ Bank of Baroda ‎
‎7.‎ Bank of Maharashtra ‎
‎8.‎ Bombay Mercantile Co-operative Bank Ltd. ‎
‎9.‎ Canara Bank ‎
‎10.‎ Catholic Syrian Bank Ltd. ‎
‎11.‎ Central Bank of India ‎
‎12.‎ City Union Bank ‎
‎13.‎ Corporation Bank ‎
‎14.‎ Cosmos Co-Operative Bank ‎
‎15.‎ DCB Bank Ltd. ‎
‎16.‎ Dena Bank ‎
‎17.‎ HDFC Bank ‎
‎18.‎ ICICI Bank ‎
‎19.‎ IDBI Bank ‎
‎20.‎ IndusInd bank linited ‎
‎21.‎ Jammu and Kashmir Bank Ltd. ‎
‎22.‎ Karur Vysya bank ‎
‎23.‎ Manipur state Co-op Bank ‎
‎24.‎ Oriental Bank of commerce ‎
‎25.‎ Punjab National Bank ‎
‎26.‎ South Indian Bank ‎
‎27.‎ State Bank of india ‎
‎28.‎ Syndicate Bank ‎
‎29.‎ Tamilnad Mercantile Bank Ltd. ‎
‎30.‎ UCO Bank ‎
‎31.‎ Vijaya Bank ‎
‎32.‎ Yes Bank ‎

All FCRA-holders / prior-permission holders must now keep their FCRA bank accounts ‎with one of these. They have been given time till 21st Jan 2018 to migrate their ‎designated FCRA Bank Account with any of the above. They should thereafter file ‎form FC-6 with details of the new bank account. ‎
Socio Research & Reform Foundation (NGO)‎
‎512 A, Deepshikha, 8 Rajendra Place, ‎
New Delhi – 110008‎

Posted in FCRA, TAX, LEGAL | 39 Comments

Receipt of foreign fund by a NGO

Is it ok for a non FCRA NGO to receive upto USD 10,000 per annum? Do they need a separate bank account for this?

Please let me know.

Many thanks,

Stanley, ODAF

Posted in FCRA, TAX, LEGAL | 7 Comments

Change of Trust Name

Would like to know what will be the procedure to change the name of an existing registered charitable Trust.
Is it possible to change the name or do we have to register a new Trust?


Mukti K Bosco
Founder & Secretary General
Ashoka Fellow, India
Healing Fields Foundation

Posted in FCRA, TAX, LEGAL | 7 Comments

Compulsory registration for All FCRA entities at NITI Aayog ‎

FCRA department has came out with a circular on 04th October 2017 to obtain “UNIQUE ID” for all NGOs / organisations registered with FCRA Department or wishing to apply Prior Permission / Registration  by registering to NITI Aayog portal “NGO-DARPAN”. This ID must be quoted for all filings/ service requests made on FCRA portal. The requirement applies to all FCRA registered NGOs as well who have prior-permission or are applying for registration or prior-permission. Please visit for more details and registration.

This ID will become must to access FCRA online services. Therefore all FCRA registered entities must apply for the same at the earliest. Although currently no time limit given, however knowing FCRA department’s working practices, it could become applicable anytime.

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

Posted in FCRA, TAX, LEGAL | 5 Comments

Is the cash payments limit of Rs.10,000 applicable from April 2017

Dear SRRF Members,

As per finance Act 2017 Limit for payment of expenses by cash is reduced from

Rs. 20,000 to 10,000/-. When from will this 10,000 limit apply? Is it from 1st April 2017?


Vidya Sagar Devabhaktuni
President, SKG Sangha
“Mandara” 3rd Main,
Muneshwara Nagar
Antharagange Road
KOLAR – 563 101

Posted in FCRA, TAX, LEGAL | 2 Comments

Payment of salaries to staff working out side India for organization

How to pay the salaries to staff who are working in foreign for our organization? What are taxes ‎applicable to them? Kindly guide us.‎

General Secretary ‎

Posted in FCRA, TAX, LEGAL | 5 Comments

Updation FCRA information on website

We were happy to come across your site giving helpful clarifications to various queries. The service you are thus providing is really appreciable. Thank you very much.
In a clarification dated Feb 6, 2016, there was a mention that for NGOs not having their own websites, the FCRA department would soon be finalising a link. Could you please confirm if there is any progress in this regard.
Thanks once again.
Raju Kurian
MG Charitable Society
Kochi – 683503
Posted in FCRA, TAX, LEGAL | 2 Comments

How do we settle advances of staff in FCRA?

How do we settle advances of staff in FCRA?

We have a vehicle revolving fund from a FC donor, where an advance is given for vehicle to staff and they repay in installments.

When we deposited in the FCRA receipt bank account the bank refuses to credit the same even after explaining the situation.

Thomas Mathews

Posted in FCRA, TAX, LEGAL | 7 Comments

Payment to a foreigner in foreign currency towards consultancy

Dear Members

I would like to know the possibility of making a payment to a Foregin
National (after entering into a written agreement) in Foregin currency
to his foreign bank account (the account is in UK) and he will be here
in india for a short period. During the period, he will explore his
expertise of a particular job. The amount is approx 4500 usd.

My question in this context, Is it permissible under FCRA?
If, it is not permissible under FCRA, can I make payment from Local Fund?

Kindly forgive me writing directly to you as I couldn’t find a link to
post questions on your website or blog.

Mathew Jose

Posted in FCRA, TAX, LEGAL | 6 Comments