Filing of IT Return if Income below minimum

Kindly provide your expert opinion

I could not reach through your web site as the same is not get opened

There is an N G O registered under 12 A

During the last financial year it has earned 2.4 lakhs as interest from its fixed deposits and
Savings Bank account

The F D and S B account is from the corpus donations and other accruals of prior years

There is no income other than the bank interest of 2.4 lakhs

No expenditure is there other than office maintenance – which is 3 thousand

Thus there us an income of 2.4 lakhs from interest and expenses of 3 thousand leaving a surplus of 2.37 lakhs.

The utilization is clearly very low

As income/ surplus is below taxable limit (2.50 lakhs), the N GO can claim T D S made by bank

No intimation of cary forward of unutilized fund is filed with the I T O any complications are there

an advise on the matter will be highly appreciated


H Iyer

Posted in FCRA, TAX, LEGAL | 2 Comments

FCRA registered organizations can now be verified from FCRA website

This is to bring to notice of all SRRF Dialogue members and particularly the funding agencies which provide funds to other NGOs that the FCRA Dept has now started a facility, whereby such agencies can directly verify the validity of their FCRA registration from the FCRA website itself.

The new facility called Validity Verification of FCRA Certificate provides complete detail of the FCRA registered entity, its name, address, fcra when registered, validity period, if Renewal application filed, the date of such filing, etc. Please see the screen shot below.



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

Posted in FCRA, TAX, LEGAL | 7 Comments

FCRA Renewal Certificate

Dear Sir,

We had applied for FCRA renewal within the stipulated date and from the fcra online website, came to know that the renewal has been granted and approved.

Is there any process to get the FCRA Renewal certificate to give a copy to donors and banks who are asking for the same.

There has been no notification on when one would obtain the same and hence would appreciate if any information has been shared.

I believe a lot of NGO’s are in the same category.



Posted in FCRA, TAX, LEGAL | 15 Comments


Respected Sir/Madam.

Our NGO Chaitantya rural development social service society,Kurnool. our NGO Functioning since 1995 at Kurnool District . We are working nearly 12 Mandals . OUR Society fcra account Opened in Indian overseas bank . FCRA Account opened in 2009 Deposited 1000/- FCRA Sanctioned 2009. But Bank Manger closed our society bank account in sufficient balance purpose . no foreign projects sanctioned. But present otf projects sanctioned bank account not functiong the amount go back . please give solution another bank account how can add fcra

Kalluru Raja

Posted in FCRA, TAX, LEGAL | 4 Comments

Workshop Report – Compliance with Lokpal and Lokayukta Act by NGOs – July 7, 2016

Workshop on Facilitating Compliance with Lokpal and Lokayukta Act 2013 organized by Socio Research & Reform Foundation (NGO)-SRRF

SRRF’s Centre for Responsible CSO Boards (CSObGOV) organized  a half day session Facilitating Compliance with Lokpal Act by NGOs at India International Centre (Annexe) on Thursday 7th July 2016 form 2:00 PM to 5:PM

The workshop discussed the latest provisions in the Lokpal & Lokayukta Act 2013. It particularly looked at the applicability of the Act to NGOs, explaining the provisions, going through the format of Returns prescribed (field by field) and consequences of non-compliance. The aim of the workshop was to facilitate NGOs comply with the legislation and bring clarity on this issue to the Sector.

There were 70 (+) participants at the workshop from CSOs (NGOs), and individuals involved and working in this sector.

After a welcome by the President of SRRF, Mr Vijay Sardana, which set the context for the consultation in the light of the need for CSOs to be accountable and transparent, since they performed such an important development role in the country. Mr Sardana highlighted the fact that the Act could be a way to strengthen Boards with strong and good governance and leadership. His note was then added to by CA Subhash Mittal, by highlighting the fact that the Act and its ramifications needed to be looked at in the context of a difficult environment for NGOs and the need for greater accountability and transparency, and ways and means to bring a positive focus on the good development work that CSOs (NGOs) do.

First Technical Session by Mr Mittal covered – major provisions of the Act; applicability to NGOs; annual return filing; consequences of not filing; and current status of implications.

Mr Deepak Bansal then went into the details of the preparation of the annual returns and took the audience through this part, section by section.

The entire proceedings were interspersed with lively questions and repartees.

Some of the key concerns that were voiced were as follows:

  • This Act seeks to cover individuals who either work in CSOs (NGOs) or are Board and Executive Committee members- the obligation to report was not of the organization but of the individual.
  • As of now the returns have to be filed in with the competent authority mentioned in the Act by 31st July 2016; most people felt this was unrealistic
  • Board members were resigning, as would HNIs (High Net-worth Individuals) who have joined these Boards to contribute to development of society through resources and their expertise. They are not remunerated for these efforts in the NGOs that they support
  • Putting this information on websites of MHA violates the confidentiality of this information for the individual concerned
  • Many aspects of the Act are linked to interpretation for example to what extent staff is covered and which staff. Are all Board members covered or only those who hold the office of a Secretary, Treasurer or Chairperson.
  • NGOs should take up the issues with the right and competent authority in the MHA – appreciating the ambit and focus of the Act but asking for clarifications as well as why it should apply only to CSOs (NGOs) who only deal with limited resources as opposed to the Corporate sector and its office bearers
  • The implementation has been postponed many times when the Act earlier applied only to Public servants who were Government employees
  • A final recommendation was to join up Groups on this issue and develop a concrete action plan to take to the right authority in the Government with recommendations for changes ASAP – include the comments from this workshop- in a preliminary letter to this authority followed by a meeting.

The session closed with a vote of thanks by Ms. Alka Pathak, Member, Core Team, SRRF’s Centre for Responsible CSO Boards and some high tea for the participants.

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


Posted in Accountability | 1 Comment

Clarification on Lokpal Act

Dear Members,

Now that NGOs are under the purview of Lokpal Act, many clarifications are required:

  1. What ‘executive’ mean as per the Act? Would it mean ALL staff?
  2. Would all trustees become ‘executives’ or only those who are remunerated by AT?
  3. Do the ‘executives’ have to fill in the returns every year till they are with the Trust or only during the year when the Trust received more than “One Crore only” from the Central Government or “Ten Lakhs” from foreign source?
  4. What is the grant from Central Government? Only if directly received or through a State Health Society, NGO partner? WOuld it be applicable to all those partners who received parts of this One Crore/ten Lakhs also through the Trust?
  5. What are the Return forms? If not available, when they would be?
  6. What is included in the term Wealth, does it mean immovable and movable property, investments, ornaments, cash and bank? How to value the wealth? Value at the time of purchase? Or current value? Wealth of only the ‘executives’ or ‘the family’ or ‘the spouse’?

Kindly advice.

Thanks and regards

Dhruv Mankad

Posted in Accountability | 11 Comments

Impact of changes in Definition of CSR Companies

Dear Members,

In terms of the recent amendment to FCRA under the Finance Act, 2016, Indian companies with more than 50% foreign shareholding will no more be considered a foreign source under the FCRA provided that the the nominal value of share capital in such companies is within the limits specified for foreign investment under the Foreign Exchange Management Act, 1999. Therefore, an Indian company with more than 50% foreign shareholding will be able to make contributions/grants/donations to other organizations without the requirement of FCRA approval. Will it impact anyhow on the companies having 100% foreign shareholding private limited companies.


N K Sinha

Posted in CSR | 3 Comments

Huge relief to FCRA Pentities for late filing of returns

FCRA Dept has come out with a notification No. 1521 dt 16 June 2016 slashing compounding Fees for late filing of the return.

As per the new notification, following are the new slabs for the penalties.

S. No. Offence Penalty amount
1. Non-furnishing of Annual Return for 3 months after 31st December 2% of FC rec’d during the year or Rs 10,000 whichever is less
2. Non-furnishing of Annual Return after 3 months but upto 6 months after 31st December 3% of FC rec’d during the year or Rs 50,000 whichever is less
3. Non-furnishing of Annual Return after 6 months but upto one year after 31st December 4% of FC rec’d during the year or Rs 2 lakh whichever is less
4. Non-furnishing of Annual Return after 1 year but upto 2 years after 31st December 5% of FC rec’d during the year or Rs 5 lakh whichever is less
5. Non-furnishing of Annual Return after 2 year but upto 3 years after 31st December 10% of FC rec’d during the year or Rs 10 lakh whichever is less

It may be noted that the major reduction in penalties is due to replacing of phrase ‘whichever is more’ to ‘whichever is less’. This will be a major relief as earlier penalty procedures were amounting to lakhs and lakhs of penalties, even forcing organizations to abandon their organisatons.

The notification also states that in all those cases, where penalties have already been imposed using the old rates, nothing can be done. Once again an arbitrary decision, not based on legal principles.

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

Posted in FCRA, TAX, LEGAL | 5 Comments

Foreign Trip for government officials and MPs by a FC registered organisation

We are a foundation established 30 years back and working on health sector on Policy advocacy and knowledge dissemination with women’s right framework being the ultimate motive.

As part of Policy advocacy, the foundation interacts with Government officials, select Members of Parliament (champions) and Industry leaders to advocate Family Planning issues and policies at the various meetings that they attend. To make this happen, constant meetings are done with various Government officials in Health Ministry both at Centre as well as State Government level to highlight various methods of Family Planning and also how the existing delivery mechanisms like ANM, ASHA etc. can be best used to increase reach. The Champions normally help the programme in bringing Government’s and people’s attention on Family planning issues at various levels whether it be at consultative committee meetings, forums, media interaction or public meetings. To this extent they are briefed about methods of Family Planning, indicators on FP, expenses committed by State and Central Government on FP and how this can be advocated to people at large.

Industry leaders also help in the same cause by speaking about Family Planning issues in various forums that they participate like various Chambers, public debates, discussions and conferences on Women’s right to delaying marriage, child delivery, spacing between children etc.

The foundation intends, as part of Policy Advocacy and other programmes, to organize a field visit to a foreign country where family planning methods like delayed marriage, spacing, availability of basket of contraceptives have been implemented in a successful manner. The visit would include meetings with development organizations, policy makers, field implementers etc.

The foundation would bear the cost of travel, stay, food and also pay per diem charges of the Government officials, Champions and also for its own staff. Intimation would be given in writing to Government department and MPs with a request to seek requisite approvals from the respective authorities.

As per Section 3(1) of Foreign Contribution (Regulation) Act 2010, Government servants, member of any legislature inter alia are prohibited from accepting foreign contribution. But it does not clarify if an FC registered organization can spend “foreign contribution” on such persons.

The activity of the foundation is planned under the donor agreement and the cost would be borne out of FCRA grant(foreign contribution).

The following queries emerge:-

  • Is it right to spend FCRA money on exposure tours?
  • Can the foundation pay the per diem charges to the government officials and MPs? If so can we give them Dollars?
  • Should the foundation seek copies of internal approvals of the Government for this tour to support our expenses?
  • Are there any other precautions that the foundation needs to take so that no provision of FCRA is contravened?

Raam Kumar

Posted in FCRA, TAX, LEGAL | Tagged , , | 6 Comments

Lokpal Compliance by NGOs

Procedure to be followed by office bearers of NGOs to comply with latest amendments under The Lokpal & Lokayuktas Act 2013

The Lokpal & Lokayuktas Act 2013 was one of the last legislation enacted by UPA Government  before demitting office in 2014, under pressure from the anti-corruption movement spearheaded by Shri Anna Hazare at the time.

The Act is to provide a constitutional body for probing corruption in the Government  including Prime Minister, Minister, legislature and other public servants. S. 14 (g) & (h) identified in what situations officials of NGOs can be covered.

S.14 (g) covered all bodies including NGOs which receive support from the Government for a specified amount. It covered any person who has been a director, manager, secretary or other officer of every society or association of persons or trust, by whatever name called, wholly or partly financed by the Government and the annual income of which exceeds such amounts as the Central Government may by notification, specify. This the Central Government has now by notification[1] has notified to be Rs 1 crores.

While Director, manager, secretary or other officer of every society or association of persons or trust has not been defined, it is clear that it covers persons who are in a position to take day to day decisions, meaning office bearers and key full-time officials of an NGO, such as CEO/ED, etc. are likely to be covered by the Act.

Similarly S. 14 (h) classifies officials of a Voluntary Organisation receiving more than Rs 10 lakh through FCRA in a year as public servants.

For the purposes of monitoring public servants, S. 44 of the Act requires filing of annual return of assets and liabilities (base being 31st March) by 31st July of that year. Assets and liabilities are to include those of spouse and dependent children. The exact provisions are given in the accompanying Box.


The Government has now come out with a notification[2] appointing the competent authority for the purposes of compliance to S.44[3] by public servants as classified under S.14(g), (organizations receiving support from the government). As per this the Minister Incharge of the Ministry which provides funds to NGOs would be the competent authority. In case of multi-ministries providing the grant, the competent authority would be the Minister Incharge of the ministry providing the largest grant. Notification further clarifies that the competent authority may change from year to year according to the grant amount and the ministry providing the grant. It also states that a copy of annual return filed with the ‘competent authority’ may be filed with other ministries who have given the grant, ostensibly for information only, since the other ministries are not the compliance authority. Return will need to be filed till the grant provided has not been fully exhausted.

Similarly to enable compliance by public servants as classified under S.14 (h), the Central Government  by notification[4] on 20th June 2016 has notified Minister Incharge of Ministry of Home Affairs as the competent body (organizations receiving more than Rs 10 lakh grants under FCRA). The notification also states that the returns will continue to be filed till such time that the donation amount so received is not fully exhausted.

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

[1] SO 2155 dt 20-6-2016
[2] SO 2154 dt 20-6-2016
[3] Although the notification does not per se mentions S.44, however the purpose of the competent authority to comply with as stated in the notification makes it very clear that it is covering S.44 of this Act.
[4] SO 2156 dt 20-6-2016

Posted in Accountability | 8 Comments