Renewal of 12AA and 80G

Greetings !

Our NGO, a section 8 co, has 12AA certificate. Didn’t have 80G as we never applied for. Hence no question of rejection. Now we are applying for revalidation of 12AA, I couple of queries:

1) Shall we apply for12AA and 80G together or
2) Shall we first wait for approval of 12AA and then apply for 80G, Please guide.

Regards,

for Human Hope Foundation

Posted in FCRA, TAX, LEGAL | 9 Comments

What if original 12A certificate lost?

Unavailability of Original 12A certificate:

Amended Rules requires uploading of certified copy of 12A registration certificate. However, there are multiple institutions which were granted registration almost 45 years back and either the certificate has got badly mutilated or lost. But, in Assessment orders U/s 143(3) since beginning factum of registration is mentioned. How such institutions will upload the certificate or there will be any other remedy for the same?

Regds.

CA Ravi Prakash Sah

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Can non formal education be the part of CSR activities?

Children Toy Foundation, seeking views and guidance from educationists and experts on CSR policy of Government to express their views and guidance on their our work relating to CSR programmes can be undertaken by cos-public or private.

In a way ours is a non formal educational project which emphases on Right of the child to play and recreation -uno’s article 31.

We want to share following information with you

social welfare system is a network of programs created to assist a country’s citizens at various stages of their lives. The system usually arises from the efforts of a government or organizations to provide social welfare. It’s an ongoing process meant to care for the specific needs of society.

In Children Toy Foundation C=Creative, T=Time and F=Fun. At Foundation children have creative time & fun.

Our aim is to educate children beyond reading and writing, so as to help them acquire real skills and develop positive attitudes in their life to instil a sense of pride in them and further boost their confidence. For this we use the potential force of toys and games to mould the character and temperament of the young ones and hone their Latent talents.

Games give training in life skills such as decision making, time management, negotiation, critical thinking and leadership

HOW WE LINK OUR ACTIVITIES TO EDUCATION

Khelvigyan is edutainment-education and entertainment.

Einstein said” True sign of education is not knowledge but imagination”

Late FRM President Shri Abdul Kalam said” My message especially to young people is to have courage to think differently, courage to invent, to travel the unexplored path, courage to discover  the impossible and to conquer the problems.

Above messages are relevant to our work and play with mind games develop above virtues in children who will be our future.

For age group 3 to 6-6.5 we use all educative, developmental games like –Things that go together, what is missing, colour and shapes, animals their homes, and what they eat, story jigsaw puzzles etc

For age groups 6-6.5+ all the brain games are used to develop creative thinking, strategic thinking enhancing intelligence. Learning to tackle different situations on the game board will be quite useful to think of all aspects of different situations of his life later on.

We have helped and guided to set up 350 toy/game libraries pan India.Through our mobile and static khelvigyan projects directly 9000+ children benefit in municipal/jilla parishad schools,villages and many more through existing network of toy/game libraries.

Our question is how in a big way Companies/Government/donors can support  our programmes so that we can reach out to tribal areas,villages,orphanages and other places where children miss basic play with mind and educational games?

Children in orphanages we wanted to serve but one co  denied to support that providing them these facility even if we look after the progress will not fall under CSR activites?


Devendra Desai
Children Toy Foundation

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Consequences for non FCRA Registration

We have applied for a grant from Australian Government for the building and trial of a new solution in the Healthcare sector.

We have been told that if we do not have FCRA clearance (which we do not have presently), we may need to secure a partner who has the clearance or is exempted from FCRA.

  1. Is such partnership allowed under the prevalent FCRA rules?
  2. If yes, under what conditions?

With regards,

Subbu Hegde

Posted in FCRA, TAX, LEGAL | 1 Comment

Things to be remember during filing of Form CSR-1

Thank you all for actively participating in the webinar on latest Income Tax [S.10(23), S.12A, S.80G renewal] and Form CSR 1. Sorry for certain technical glitches and loss of internet during the presentation. Hope it did not affect your learning / resolution of issues.

One of the issues raised during CSR-1 presentation was by a participant, that they are finding it difficult to upload documents due to size of the attachments. This is a genuine problem, most company secretaries submitting documents on MCA site will tell you the same. You need to reduce the size of the attachments to less than 6 MB, smaller the better. Following are a few tips for minimising the size of attachments.

  • Scan documents in gray scale rather than in colour, convert each attachment to a PDF and then again compress (you can use IlovePDF.com, or similar websites) to make it smaller in size.
  • Please ensure only minimum documents need to be attached. For example in case of Trust Deed, attach document which has name and registration no. & date.

MCA has a helpline no. 0120-4832500 & email id: Appl.Helpdesk@mca.gov.in You can contact for any problems.


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

Posted in FCRA, TAX, LEGAL | 1 Comment

Implementation of Accounting Software with audit trail postponed ‎

Ministry of Corporate Affairs which had earlier mandated that effective 1-4-2021 all companies (including S.8 companies) must use an accounting software, where any changes in an accounting entry made must be identified and auditor must be able to track the same. Instruction given by the Ministry of Corporate Affairs required that all Accounting Software must  have a feature of recording audit trail (edit log) facility, and auditor needs to report on the same.

However realizing the difficulties that companies may face, as presently such accounting software are not readily available, MCA has now postponed the applicability of software with such Audit features to 1st April 2022 instead of 1st April 2021.


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

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HOW TO FILL FORM ‘CSR-1’‎

All those NGOs wanting to access CSR funds, would now need to register themselves at Companies Act web portal using eForm CSR 1. The Form is available on the MCA Portal http://www.mca.gov.in/MinistryV2/companyformsdownload.html and is also available on this blog. You may download it from here CSR 1.

The Form is quite self-explanatory. Detailed instructions for filling the Form can also be downloaded from here. Instructions are quite detailed.

The Form has to be certified by a professional (Chartered Accountant/ Cost Accountant or Company Secretary, however whoever signs must be in whole time practice). His digital signatures would need to be attached to the certificate issued by the professional.

The Form has to be digitally signed by anyone of the persons referred to in the Form.

  • Section 8 Co.: Any authorised Director
  • Trust: Any authorised Trustee or CEO
  • Society: Any one of Chairperson/CEO/Secretary

UPLOADING THE FORM CSR-1

For uploading the Form, all should register on MCA portal http://www.mca.gov.in/mcafoportal/login.do by creating a User Login Id & Password. Once done the Form will need to be uploaded on this portal.

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

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KEY CHANGES IN TAX RULES & NEW FORMS

As many of you are aware that Income Tax Dept in March 2020 Budget had made it mandatory for all NGOs to renew their 12A, 80G and other certificates, however due to Covid many of these changes were not implemented. Now the Dept has brought out necessary Forms & clarity on how these are to be implemented.

RENEWALS / FRESH REGISTRATION

  1. Income Tax Dept. has now come out with different FORMS, that it requires charitable entities to file for various registrations, certificates etc.
    • Entities already registered under S.10(23C), S.80G, S.12A, but need to renew their registration: Use Form 10A for application.
    • Entities not registered so far under S.10(23C), S.80G, S.12A, though have applied for registration using old Forms. If the application is pending as at 1-4-2021, will be treated as eligible for Provisional and will be issued provisional registration for 3 years, within one month of application/1-4-2021, whichever is later.
    • In future all new entities will need to file new Form (Form 10AB). Also entities with provisional certificates would need to apply six months before expiry of their certificate.
    • For getting relief under S.35  (Form 3CF)
  2. Applications for renewal have to be filed within 3 months of 1-4-2021, i.e.  by 30th June 2021. Approving authority has to issue the Order within next 3 months. In case approved, all certificates will be valid for 5 years, except Provisional certificate as explained above.

Certificate / Statement by NGO for S.80G Donations

  1. All charitable entities now need to furnish a Statement of donation in the Form 10BD, electronically for donations under S.80G /S.35. This statement is to be prepared for all those donors who are eligible to claim this tax relief. The Statement would need to be filed before 31st May following the year-end by the NGO.
  2. NGO would need to issue certificate (Form 10BE) to donor for the financial year. This has to be issued by 31st May 2021.

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

Posted in FCRA, TAX, LEGAL | 6 Comments

Clarification – Opening of FCRA A/c in SBI Delhi

Hi, ‎

We have received query from SBI Delhi which is given as follows:‎

Annexure II need to be filled by all the signatories and ‎designated members (post holder)in personal capacity. (only ‎sign of the customer is required without the stamp). Kyc of the ‎same need to be obtained. (DESIGNATED MEMBERS TO BE ‎DECIDED AS PER THE LIST OF MEMBERS)‎

I’d like to know who are designated members?‎

Also our board resolution talks about a quorum of 6 ‎members . Are those 6 members considered members?‎

Looking Forward to your reply.‎

Regards,‎

Sandeep

Posted in FCRA, TAX, LEGAL | 4 Comments

Can a foreign loan be received by an NGO without FCRA?‎

Dear Sir/Madam

A charitable organisation running educational institution is not yet registered under 12A of ‎income tax act and under FCRA. It is registered under Society act in 2020 and started ‎constructing building and for this one of the member who is Non Resident Indian transferred ‎funds from outside India more than 2 cr in the account of society for construction of building ‎of the school. Society treated it as unsecured loan from the member which will be refunded ‎when the school will be in operation in due course.‎

Is there any implication of this transaction under FEMA or any other law? Please guide.‎

CA Arvinder Pal Singh

Posted in FCRA, TAX, LEGAL | 3 Comments