As per FCRA 2010, when an organization receives FCRA funds, the details of the amount and the donor are required to upload into the website of the concerned organization. I would like to know the limit prescribed: for example is it 10 lakh above or any foreign funds?
Shekar
IFA
I thank all who have responded to my query.
Regards,
Shekar
I think we must not treat disclosure of information on NGO’s OWN website as a quarterly return. We will set a bad precedent. This is nothing but disclosure of funds received from the donor. New Rule 13(b) very clearly states that ‘a person receiving Foreign Contribution in a quarter of the Financial Year shall place details of the Foreign Contribution received on its official website (i.e. NGO’s website) or on the website specified by the Central Govt.’
There is no official return, but just disclosure of information. Choice is of the NGO on which website it places this information. My preference is always that the information be placed on NGO’s website, since placing it on FCRA website unnecessarily binds you for future. All that the rule requires is information to be disclosed of amounts rec’d, alongwith date and details of the donor. No where it states ‘nil’ has to be disclosed. However disclosing nil may give comfort level to the organisation.
Please note I have used the word disclose and not submit. Because if we start submitting quarterly information on the FCRA website, without having such requirement, sooner or later this will become a mandatory requirement. But would like to hear from others.
Dear Subhashji,
I do agree that this is not a quarterly return but sharing of information with the department on the grants received during each quarter. The challenge here is that many of the grassroot NGOs either do not have a website or cannot afford to have one. Such NGOs have no choice but to upload the information on the FCRA website. Also, in the case of FCRA website,2 there is no provision to disclose the interest earned on the FC funds which is also treated as FC income for all practical purposes.
Thanks and regards,
B V Soma Sastry
What is the harm is reporting about the receipt in FCRA website? In fact, they have opened a page (like the annual return page), where the details of organisations which had filed quarterly return have been mentioned. The list includes NIL returns also. The details required are only the amount received (in INR), details of donor and purpose for which received. (Even the date of receipt is not asked for). If we regularly file this for every quarter, it is easy to cross check while filing annual return. Of course, there is no provision as of now to indicate the interest accrued in FC bank accounts. I think we can include the bank name in the ‘Add Account’ and choose the same while indicate that receipt.
My concern for suggesting not to treat quarterly disclosure as a quarterly return to FCRA Dept is based on precedent. Prior to 2010 FCRA Dept never asked for disclosure of interest in FCRA return, however since most persons disclosed this as part of FC funds, FCRA 2010 was drafted to treat interest as FC. If the expansion of FC definition was left only to interest it would been OK, FCRA Dept now even treats any ‘other income’ derived from the FC or interest thereon as FC. Thus if on a revolving fund Ram or Shyam pays back interest, this becomes FC or if old furniture is sold as scrap to a kabadi, it becomes FC. This was simply because a number of NGOs or their advisors started treating all income as FCRA income.
In view of such past experience, I feel we should treat any requirements of FCRA Dept on its face value and not become overzealous and start extending the requirements. These may boomerang.
Dear Sekhar,
There is no limit in so far as the quarterly reporting is concerned. All the FC funds received during the quarter have to be reported within 15 days after the quarter ending. The date of receipt, name of the donor, amount & contact details have to be uploaded. Also note that now there is a provision to upload the information on FCRA website as well.
Thanks & regards,
B V SOMA SASTRY
Now the NGOs will be uploading their information for the last quarter of 2015-16. Should this information be uploaded on cumulative basis or separately for each quarter alone?
The return has to be filed within 15 days of the completion of the quarter. You cannot file now for the last quarter of 2015. This has to be filed at the end of every quarter, apart from the annual audited return we sent.
Any amount received during the particular quarter has to be reported. Even nil report has to be sent