It is a happy news for all in the NPO Community that MHA has extended FCRA registration validity by six months to 31st March 2023.
This is applicable to all those who applied before the due date i.e. before expiring of 5 year original validity period. (click here for FCRA notification)
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Socio Research & Reform Foundation (NPO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008.
Whether Interest earned on endowment fund from FCRA account can be transferred to other account i.e .INR account(non fcra account) for utilizing the same as written in the contract/agreement. However, in the FCRA return we can show the income earned from endowment fund (investments)during the year and expenditure as income transferred to INR account (90% of interest- for the purpose mentioned in the contract) and 10% balance as reinvested. Otherwise we are never able to spend the income earned from an FCRA account.
Can you share your views
Ramakrishnan Natarajan
Many organizations who have received adverse order from FCRA and who wish to challenge the same, have little choice except filing a writ petition in the High Court. Going to High Court is both expensive and lengthy, and may not be the first choice of an entity.
FCRA has provision of Section 32, which allows any person registered under the Act to file for revision of any order issued by the FCRA Dept within one year of the Order having been communicated to that person. However most do not know how to file a revision application, as no detailed procedure had been prescribed by the FCRA Dept. Rule 20 stated that application can be filed on a plain paper. However considering FCRA Dept has stopped taking physical documents, many were at a loss on how to proceed in the matter. Now vide an Order dt. 12 August 2022, the Dept has stated that w.e.f. 1st September 2022 an application under Section 32 for revision of a order issued by FCRA Dept shall be made in electronic form through FCRA website.
To further explain the matter it has come out with FAQ on the issue, it specifically forbids to send Revision application through post, but to be posted online at FCRA website.
Once you go to FCRA website select from main options, ‘Services Under FCRA’ and the sub-heading ‘Revision Application against Section 32, FCRA 2010’. Link at the FCRA website is https://fcraonline.nic.in/FCR.aspx?Resp_Id=44
For FCRA Order and FAQs please click here
Looking forward to contribution of Dialogue members on the same.
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Socio Research & Reform Foundation (NPO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008.
Sir,
Clarification required regarding Form 10 AC, 12 A Certificate for taking up projects under CSR through Implementing partner NGO.
Are these certificates Same or are they different
Thanks & Regards
CSR officer
Mugma Area
Eastern Coalfields Limited
Dear Members,
Some NGO treat ” Grant utilised ” as Grant Receipt/Income in both – Financial statement and in ITR.
They do not show Grant Received as Grant receipt/ income.
Is it the correct way as per income tax act ?
Thanks & Regards
Amrut Mistry
Compounding of offences along with penalties
| S. No. | Offence | Penalty | Comments, if any |
| 1. | Accepting Hospitality without Permission | Rs 10,000/- | Introduced in 2018, no change in 2022 |
| 2. | Transfer of FC to a person who does not have FCRA / Prior Permission | Rs 1 lakh or 30% of FC trfd, whichever is higher. | Please note after amendment in 2020, now there is no scope of transfer of funds to another partner, whether having FCRA or not. However if someone still transfers funds, compounding option is still available after 1-7-2022 but only once. Repeat transfers have been taken out of scope of compounding and also compounding rate increased to 30%. |
| 3. | Violating 20%limit on Admin Exps. (S. 8) | Rs 1 lakh or 5% of excess amount spent on Admin., whichever is higher. | Amendment made to give effect to 20% amendment made in the Act, during 2020. |
| 4. | Accepting FC without registration or Prior Permission (S. 11) | Rs 1 lakh or 10% of amount so accepted whichever is higher. | No change. |
| 5a. | Accepting FC in any account other than designated account. | Rs 1 lakh or 5% of amount so accepted whichever is higher. | No change. |
| 5b. | Non-reporting of FC by banks and concerned entity. | Rs 1 lakh or 3% of amount so rec’d or deposited whichever is higher. | No change. |
| 5c. | Non-FCRA funds deposited in designated / utilization accounts. | Rs 1 lakh or 2% of amount so deposited whichever is higher. | No change. |
| 6. | Non-intimation of FC in the manner as prescribed under S.18 | Rs 1 lakh or 5% of amount so rec’d during non-submission period, whichever is higher. | No change. |
| 7. | Non-maintenance of account and records as per S.19 of the Act. | Rs 1 lakh or 5% of FC during non-maintenance period, whichever is higher. | No change. |
| 8. | Non-intimation of FC within the prescribed time limit | 5% of such FC rec’d in a FY | New |
| 9. | Failure to intimate about opening of bank account/s within prescribed limit. | Rs 10,000 per utilization account within prescribed time-limit. | New |
| 10. | Failure to intimate of changes covered under Rule 17A within prescribed time limit. | Rs 10,000 for each violation within prescribed time-limit. | New |
| 11. | Failure to put on website audited FCRA financial statements within 9 months. | Rs 10,000 for each violation | New |
Notes:
1- The amount of penalty shall not be more than the value of the foreign contribution received.
2- Changes mentioned above effective from 1-7-2022.
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Socio Research & Reform Foundation (NPO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008.
All the above rules have been amended effective 1-7-2022.
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Socio Research & Reform Foundation (NPO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008.
We are happy to inform you all that Ministry of Home Affairs re-extended the validity of registration certificates of such entity whose validity was extended till 30 June 2022 vide Public Notice dated 24 March 2022 and whose renewal application is pending will stand extended till 30 September 2022 or till the date of disposal of their renewal application, whichever is earlier.
The validity of FCRA entities whose validity period is expiring during 01 July 2022 to 30 September 2022 and have applied/apply for renewal before expiry of 5 years validity period will stand up to 30 September 2022 or the date of disposal of renewal application, whichever is earlier.
The new date for all the organizations whose validity of registration falls between above period will be 30 September 2022.(click here for FCRA Notification)
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Socio Research & Reform Foundation (NPO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008.
Dear Members,
We have received FC fund in SBI FCRA designated accounts.
We transferred the fund to FCRA Utilisation account (other bank).
Can we be allowed to make FD from FC utilisation Bank accounts in different banks for earning higher interest income?
Thanks
Amar
Dear SRRF Team,
I am writing to inquire if any excess funds donated to an FCRA account can be transferred back to the donor?
I am a foreign citizen who had partnered with an FCRA approved Indian non-profit to implement a project in India. I am just an individual not associated with any organization and had donated money from my personal bank account to fund this project. With the project now close to finishing, the organization has unspent funds in their FCRA account that I would like to request back. Can the remaining money be simply transferred back into my personal bank account? I was going through your forum and found conflicting information. Any guidance would be appreciated.
Thank you.
Regards,
Anuja Jani
