How to become All India Level Society from Single State Society?

Dear Esteemed Members
Greetings from New Delhi!

You are requested to guide me in the following matter:

Facts of Case

1. Existing Charitable Society registered in New Delhi under Societies Registration Act 1860.
2. 12A & 80G Registration obtained under Income Tax Act 1961.
3. Registered as Single State Society.
4. FCRA Registration obtained.


To change the status from Single State Charitable Society to Multi-State Charitable Society.

Kindly help me with the following details:
1. Procedural formalities to be undertaken.
2. About the relevant forms, affidavit formats, etc.
3. Provisions to be kept in mind of Societies Registration Act 1860 & other applicable laws & rules in this regard.

Thanks in advance

Warm Regards
R. Anutam

Posted in FCRA, TAX, LEGAL | 4 Comments

Requirement for filing return under Lokpal postponed (indefinitely ?)

Dept of Personnel & Training, nodal Dept for Lokpal has come out with an Office Memorandum dt 1 Dec 2016 stating that ‘there is no requirement for filing of declarations of assets and liabilities by public servants now’. Following conclusions can be drawn out of this OM.

  • Immediate sword hanging over many persons requiring filing of annual asset & liability return to the Dept has been removed.
  • Deadline has not been postponed to a specified future date, but it appears indefinitely, though it is linked till the time Govt finalizes fresh set of rules for filing of such Returns.
  • Remember S. 44 which specified what all needed to be disclosed and to whom. Towards the end of July’2016, GoI passed an amendment bill removing earlier S.44 and replacing the same with a new section, which basically authorized Govt to decide the form and manner of disclosure of his assets & liabilities. It also amended S.59(2)(k) which authorized Govt to make rules in this regard from the retrospective date when the Act became applicable.
  • In other words GoI decided that instead of stating the manner of compliance with the annual return in the Act itself, it took the entire power of same in its hands. However there is a twist in the tale, the Govt had already come out with Rules for framing the ‘manner’ of submission (i.e. Forms) and minimum amount that needed to disclosed vide a Notification which was notified in the Gazette on 14th July 2014.
  • Question is now has the above-mentioned notification become null and void with amendments made in the Lokpal Act through Amendment Act on 29th July 2016. Dept’s 1st Dec 2016 memorandum thinks so, as it states that there is ‘no requirement for filing of declarations of assets and liabilities by public servants now’, mainly on the ground that earlier relevant provisions have been replaced by new ones.
  • However there is second school of thought, which states that the amended section did not nullify the rules that had already been notified earlier. See the language of amended section: ‘In and from the date of commencement of this Act, every public servant shall make a declaration of his assets and liabilities in such form and manner as may be prescribed (emphasis ours). Even the clarification issued by the Govt is through a Departmental Office Memorandum and not through a Notification.
  • So what should a common man who may fall in the definition of Public Servant do. Govt’s intention is very clear that it wants to amend the earlier rules as prescribed in the earlier set of Rules. There is hardly any opposition to this move, since most from civil society seem to be looking for some relief for persons who may fall within the definition of public servant as far as for NGOs are concerned.
  • In view of the above amendment, there is no immediate need of filing the asset / liability return and wait till the fresh rules are notified, which could be sometime away.                   (click here for circular)

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

[Disclaimer: It may be stated that the above suggestions have been given for general awareness of SRRF Dialogue members and do not form any contractual relationship between the SRRF or opinion giver or the person/s receiving these information or anyone taking action based on the same. It should not be relied upon as a substitute for detailed advice or a basis for formulating business decisions.
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Posted in FCRA, TAX, LEGAL | Tagged , | 1 Comment

Cash Deposits by NGOs under demonetisation

Present Income Tax Act 1961 has provided for tax treatment of anonymous donations as per Sec. 115BBC. Here the term is anonymous donations and this is different from cash donations. In case an NGO has received Cash donations, our suggestions are as follows:

  1. Please obtain PAN / ID card proof from donors / members of the NGO so that no one can refuse/ refute such cash payment and also get the cash receipts counter signed by payers.
  2. Secondly, in the present scenario, there is some confusion regarding tax treatment of cash deposits, even if these are proper, identified and accounted for. Govt. is thinking of making every tax payer to declare all cash deposits in 500/ 1000 denominations notes after 8th November 2016 till 30th December 2016 and taxing such deposits taxable. To what extent such intention is implemented and how is a big question.

Therefore, please wait for some clarity. The relevant section is 115BBC (anonymous donations- flat rate-30%)
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail:; website:

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Final chance for renewal of FCRA Registration

Giving a final chance, the Government has decided to ask more than 11000 NGOs who’s FCRA was not renewed since their applications were not filed online by 30th June to submit fresh application for the renewal of FCRA Registration.

The FCRA department is sending emails and in case mobile number is available, SMS to all these NGOs to provide the necessary documents along with complete application to home ministry to get their registration, granted under the Foreign Contribution Registration Act (FCRA), renewed.

A total of 11,319 NGOs lost their foreign funding licence as they failed to renew their registration within stipulated deadline of June 30 this year.

After the Centre’s decision to cancel registration of these NGOs, the number of outfits permitted to receive foreign funding has come down to around 19,000. Till two years ago, the country had around 42,500 FCRA-registered NGOs.

However details how NGOs should approach the Government are still awaited.
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail:; website:

Posted in FCRA, TAX, LEGAL | 9 Comments

Tax calculation in case of public trusts without 12A registration?

Dear Team

We have few general queries

1.How is taxable income & the amount of tax payable calculated in case of public trusts without 12A registration ?

2.If a public Trust without 12A has Total donation received Rs. 4 lacs .

i) What is the taxable income and amount of tax payable if expenditure is Rs. 3 lacs and balance is 1 lac ?

ii) What is the taxable income and amount of tax payable if expenditure is Rs. 4 lacs and balance is nil .


Posted in FCRA, TAX, LEGAL | 4 Comments

Demonetization & NGOs

Dear Sir,

We need to have your advice about whether, we, as an NGO, Could be allowed for a limited period, under the recent De-Monetizing move of the existing currency of Rs.500 and Rs.1000 by the Govt. of India.

We, as an NGO, in the Chattisgarh state, keep receiving the membership fee, etc. from various districts of the state, as per the declaration mentioned in our bye-laws. Now, as, the membership fee amount had already been collected by our volunteers in different districts of the Chhattisgarh State which consists of considerably huge numbers of Rs.500 and Rs.1000 currency, which has recently been de-monetized by the Govt. of India.

Anyway, we, as an NGO with the network in all the districts of the Chhattisgarh-state, along with all our board members, designatories, volunteers and beneficiaries, welcome and support the move.

Now, The problem with us, as an NGO, is related to the information & knowledge, about the legality of making deposit into the bank. Please let us know, whether, we could deposit the money, received as the membership fee from our female-beneficiary-members, mentioning the receipt numbers with date of receipt; and also could we seek formal-permission by our Banker or RBI, regarding the issue, mentioning the limit of the total deposits, to be made during the permitted-period, like December 30th 2016.

Seeking your authentic advice in this matter, urgently…….


With Regards,
Tapash Chatterjee
Secretary & CEO
Near Shiv Mandir, Hardware Line,
Supela, BHILAI–490023,
Chhattisgarh, India

Posted in FCRA, TAX, LEGAL | 9 Comments

Advance payment to staff from FCRA Account

Dear Members,

I wish to know if any advance can be paid to staff for his/her foreign visit on an invitation by foreign donor for meeting/workshop under FCRA or not?


Jagdeep Kakkar

Posted in FCRA, TAX, LEGAL | 2 Comments

Can an INGO branch office employ foreigners?

Dear Members,

I am a member of SRRF group.

“Can a branch office in India of an INGO can hire Foreigners on their roles”

Thanks for your support and will wait for your revert.

Best Regards,


Amit Gulati

Posted in FCRA, TAX, LEGAL | 1 Comment

International organizations which shall not be treated as foreign source

FCRA Department has further enhanced list of International Donors (foreign source) which are exempted from FCRA vide its ORDER NO. SO 3210(E) [F.NO.II/21022/23(07)/2015-FC-III], Dated 17-10-2016.

These organizations are as follow:

  1. South Asian Association for Regional Cooperation Disaster Management Centre (SDMC);
  2. Global Fund for Disaster Risk Reduction (GFDRR);
  3. Asian Disaster Reduction Centre (ADRC); and
  4. Asian Disaster Preparedness Centre (ADPC).

This now means that there now 113 foreign source organization which are exempted from FCRA.
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail:; website:

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Can grant be made to foreigners?

Dear Members,

I am writing on behalf of India Foundation for the Arts, a grant making organization using FCRA and Indian funds. I would like to know whether we can make grants as per the legal provisions in India.

  1. “Can foreign nationals be a principal researcher/grantee in case of a grant made to a non profit organization registered in India”?
  2. Can grant be made to PIO and OCO card holders?

Looking forward to your valuable opinion.



Posted in FCRA, TAX, LEGAL | 4 Comments