Socio Research & Reform Foundation

AY 2023-24
In case your NPO has still not filed Audit Report in Form 10B/10BB for AY 2023-24 (i.e. FY 2022-23), which was required to be filed by 31-3-2024, can breathe easy and file the same by 10^th November 2024. CBDT has come out with a notification extending the date. You can access the notification by clicking here, It seems that this is applicable to all those, who have not filed the Audit Report or filed in the wrong format, and are required to file the same in correct format.

Choose Correct Form
A number of NPOs made mistake in choosing the correct Form. Please re-check, and if incorrect Form has been filed, you can still file the correct Form.

Form 10B to be filed if anyone of the following conditions is satisfied:

• NPO’s Total income during the PY (without giving effect to S.10(23C), S.11 or S.12) exceeds Rs 5 crores.
• If NPO has received any foreign contribution during the PY.
• If the NPO has applied any part of the income outside India during the PY.

For all other cases latest Form No.10BB should be used.

For more details, please refer to Rule 16CC / Rule 17B of IT Rules.

AY 2024-25
It may be noted that for AY 2024-25 (i.e. FY 2023-24), the date for filing these documents was 30^th September 2024. Hope the same has been complied with.

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

As per amendments made last year, NPOs are required to submit Form 9A (for application of funds during next year) and Form 10 (for accumulation of funds for application in future) sixty (60) days prior to the date of filing the return.

Last year, after several representations were made to the Finance Ministry, regarding difficulties in following these timelines, the Ministry had come out with a Circular 6/2023 dt 24-5-2023, which stated that ‘the accumulation / deemed application shall not be denied to a Trust as long as the statement of accumulation / deemed application is furnished on or before the due date of furnishing the return as provided in sub-section (1) of section 139 of the Act.’

It is presumed that this circular will be applicable this year too.

However, all those NPOs who wish to play safe, please ensure that these Forms are filed before 31 August. But we sincerely hope that the above circular was not meant only for last Assessment Year, but is applicable to the provision for all times to come, until it is specifically amended.

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

We are happy to inform you that FCRA department has extended the validity of FCRA certificates till 30-Sep-2024. This is applicable to all those NGOs whose FCRA had been earlier extended till 30-Jun-24 vide notification dated 28-Mar-2024 and their FCRA renewal application was pending with the FCRA Dept.

In case renewal application is refused, then the validity of the certificate shall be deemed to have expired on the date of refusal of application of renewal. In such a situation organization would not be eligible to either receive or utilize FCRA funds after such date.

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

Dear Team,

We are a Society, registered under Societies Registration Act, 1860 as a not-for-profit organisation.

Can we get registration under ‘Trademark’ for a specific logo ?

Regards

Prabhat Kumar

Validity of FCRA registration has been extended till 30-Jun-2024. Thus all those NGOs whose FCRA had been earlier extended till 31-Mar-24 because their renewal application was pending with the FCRA Dept.

Also in case an NGO’s FCRA expires by 30^th June 2024 and they have applied for FCRA renewal before expiry of 5 year period from the date of previous FCRA registration, then their FCRA will also be extended to 30^th June 2024.

In case renewal application is refused then the validity of the certificate shall be deemed to have expired on the date of refusal of application of renewal. In such a situation organization would not be eligible to either receive or utilize FCRA funds after such date.
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Socio Research & Reform Foundation (NGO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

FCRA Helpdesk is now actively supporting to resolve FCRA related queries that NPOs face under following categories:

• Annual return FC 4 or Penalty related issues
• Awaited status of a current or a pending application
• FC3A Registration or FC3B Prior permission of FC2 Foreign Hospitality and related clarification issues
• FC3C Renewal or FC6A 6B 6C 6D 6E Change of details and related clarification issues
• Login issues or forgot user id or email id or password
• Others

Basically system allows you to generate a Enquiry Ticket. For this you need to follow following steps:

1. Register on https://helpdesk.fcraonline.gov.in, by providing your e-mail or mobile number (please note this registration is different from normal user id that you use for accessing FCRA Online Portal, particularly for filing various FC returns. 
2. Login using OTP.
3. After logging in on the website, update your profile by entering some mandatory fields like (Name, Mobile number or email id, whichever is not available on your profile). You will need to verify once again by entering second OTP.
4. After this you can enter your complaint in the allotted field.
5. After successful registration of your enquiry, a unique Ticket No. is generated, which you can follow to have the query resolved.

In case you face any difficulties, write a mail at “support-fcra@gov.in” or through telephone number 011-23077501 and 011-23077505.

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

We are a FCRA registered non-religious Society. We have received certain non-restricted foreign grants, which we want to utilise for acquiring immovable property for the purpose of Society activity. However, some of its portion will be let out and will generate rental income.

My query is whether the rent received will be treated in the nature of Commercial receipts or FCRA receipts in the Society’s financials.

Kindly enlighten.

Thanking You Deepak Tayal

Criteria for recognition an entity as Social Enterprise

A NPO or FPE can be classified as a Social Enterprise. To be classified as one, following criteria has to be fulfilled.

• Primacy of Social Intent needs to be established through engaging in certain social causes. These could be any of the activities covered under SDGs or even protection of national heritage, art and culture, promotion of rural/nationally recognised/para-Olympic/Olympic Sports, supporting non-profit ecosystems, and several other socio related activities. 
• Entity should be focussed on serving under-served or less privileged population or backward regions, with minimum 2/3^rd of its average revenues of last 3 years coming from serving such populations or 2/3^rd of average expenditures of last 3 years focussed on target population.
• Corporate Foundations, political religious organisations, professional or trade associations, infrastructure or housing companies (exception low-housing activities) will not be eligible to be recognised as social enterprise.

Registration of NPO / Social Enterprise at SSE

Registration Requirements

A NPO can register itself on SSE as per S.292(F) of ICDR Regulations. To do the same it needs to fulfil following requirements.

• A NPO must have been registered for at least 3 years. Its registration as NPO (Society, Trust, S.8, etc.) must be valid for next 12 months at the time of seeking registration with SSE. PAN should confirm the legal status of the NPO.
• If entity owned by Govt, indicate the same, or state if it is a private entity.
• 12A/12AA/12AB registration, valid for at least 12 months.
• Should have a valid 80G registration to be able to give IT deduction to investors.
• NPO should have a minimum spending of around Rs 50 lakh during last FY and receipts at least around Rs 10 lakh.
• NPO should have at least 2/3^rd of its spending on social projects, to be classified as a social enterprise.

Benefits of registration on SSE as a Social Enterprise

• Improved market access:  By registering on SSE as a Social Enterprise, a NPO gets access to a common and structured meeting ground between Social Enterprises and investors/donors with inbuilt regulation for providing sanctity and accountability of finances.
• Synergy between investors and investee in social aims:In view of flexibility of investments and capital that would be available on an SSE, the canvas of choice would be much wider allowing investors and investees with similar missions and visions to connect seamlessly
• Performance based philanthropy: Performance of the enterprises listed on an SSE would be monitored thus it will instil a culture of performance driven philanthropy.
• Minimal registration cost: SSE saves cost for both issuer and investor/donor by charging minimal fees for registration and listing.
• Additional avenue for Social Enterprises: Central and State governments till date have the biggest onus of achieving sustainable development goals. SSE will provide an alternate avenue for raising funds thereby encouraging new and existing social enterprises.

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

(Some of you may be aware of Social Stock Exchange (SSE) being introduced in India. Through this Series, we will cover major issues relating to SSE. In the first post, we give International Background of SSE and its Legal Framework in India.)

Finance Minister in her Budget speech in 2019 introduced the concept of Social Stock Exchange (SSE) in India, as a separate platform to enable non-profit sector to raise funds for itself.

International Scenario
Brazil was the first country to launch an SSE in the year 2003, followed by South Africa in 2006, Portugal – 2009, Canada, Singapore & UK – 2013 and Jamaica – 2019. However only SSE’s based in Canada, Singapore & Jamaica are active, indicating difficulties in sustaining SSEs.

Most of the international platforms have limited transactions, with limited opportunities, and mainly focussed on FPEs, rather than NPOs[1]. In contrast Indian SSE is working towards trading for equities issued by FPE and provides opportunities for NPOs to open up avenues for direct listing. It is also developing set of procedures to enable investors to identify those entities which have measurable social impact.

Legal Framework
We all are aware that SEBI provides an overarching regulatory mechanism for regulating securities market and protecting investors. SEBI was established through SEBI Act 0f 1992. In 2022, SEBI amended its various regulations to introduce overall a framework for Social Stock Exchange[2].

Under the proposed framework, SEBI offers following services under SSE:

1. Recognition of a NPO as well as a For Profit Entity (FPE) to be recognised as a Social Enterprise
2. Allows listing of a NPO without raising of funds
3. Allows raising of funds by a NPO

(to be continued)

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

Dear Sir/Madam,

Can Indian Registered NGOs having FCRA registration, establish its offices outside India for Resource Mobilisation.

Murali G