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Dear Sir/Madam,

I am writing here to get some clarity on FCRA funds.

One society is having 2 FCRA bank accounts one utilization account in PNB(This was the old receipt and utilization account) which is currently the deemed utilization account. After opening the FCRA SBI New Delhi Account, the society has not received any FCRA donations. The SBI account does not have any balance in it. Today the society received a email stating that the due to no transactions in the account it will be marked inoperative.

Can we transfer some funds from the PNB account to the SBI account which will be utilized at a later date for the societies activities only.

Thanks in advance,
Noel Gole

MHA has come out with a clarification through a Public Notice dt 21-1-2025, that once a FCRA registration is suspended or cancelled, they cannot use FCRA funds lying either in Designated Bank account or Utilization bank Accounts. While in case of suspension / cancellation, FCRA authorities intimate SBI of the same, however no intimation goes to bankers who are maintaining Utilisation Accounts. Therefore, such bankers are not aware of the of suspension / cancellation of FCRA registration. At times, NPOs continue to use funds lying in these Utilisation bank accounts, even after FCRA has been suspended or cancelled. FCRA Dept has now clarified that such use is violative of FCRA provisions, and concerned NPOs could face penal action for the same.

The Dept has also clarified that any NPO, which fails to apply for renewal before expiry of registration, their FCRA registration falls under the category of Deem to be Ceased. Such NPOs cannot use FCRA funds lying in designated / utilization bank accounts after the registration has deemed to cease. Such NPOs who use fund after this date, are violating FCRA provisions, and could face penal actions.

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

FCRA Form FC4 has been amended vide FCRA Amendment Rules 2024. These amendments are summarised below.

• Unspent Admin Expenses: If an entity has not spent allowable 20% of the FCRA funds received in a year, unspent part can be carried forward to next year. Thus say, an Association has received Rs 1 crore as FC receipts during FY 2024-25 and therefore at the maximum is allowed to spend Rs 20 lakh under Admin Heads. If it spends, say Rs 15 lakh only during FY 2024-25, new rules enable it to carry forward Rs 5 lakh to next year (FY 2025-26).
• Details of Chartered Accountant certifying FC4: Now details of chartered accountant who provides FC4 certificate are to be given in FC4. Details include Name, address, Member Registration No., Email address, Date of Issue of certificate, In case any violations pointed out then these need to be specified in the FC4.
• Chartered Accountant Certificate format amended: Now CA certificate needs to state that there are no violations, and in case there are violations, then these violations need to be specified.
• TDS refund rec’d in non-FCRA Bank A/c can be transferred to FCRA Bank A/c: FCRA authorities have vide Public Notice dt. 31/12/2024 have allowed to transfer any TDS refund received in non-FCRA account to be deposited in FCRA Bank a/c. In case the refund covers both FCRA deposits as well as non-FCRA deposits, than appropriate proportion of the same can be transferred to FCRA bank account from non-FCRA Bank account. FC4 has been suitably amended to disclose such refunds separately.

SRRF Dialogue Comment: Above changes reflect two major developments.

1. By clarifying on TDS issue being deposited in non-FCRA Bank a/c, FCRA Dept for first time has shown some responsiveness to issues being raised by Associations. Hope there will be more such responsiveness by the Dept, on part of Associations, they should write more regularly to the Dept, wherever they face problems.
2. On the line of Form 10B, FCRA Dept is also making Chartered Accountants specify that there are no violations, and if violations are there, these need to be specified. Thus the Dept forcing Chartered Accountants to be more accountable.

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

Regarding refund of TDS pertaining to foreign contribution received in non-FCRA bank account can be transferred to FCRA bank account…(click here for notification)

Administrative expenses can be carried forward to the next year…(click here for notification)

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

Validity of FCRA registration has been extended till 31-Mar-2025 vide a Public Notice issued by the FCRA (Director) on 27^th December 2025. Thus all those NGOs whose FCRA had been earlier extended till 31-Dec-24 because their renewal application was pending with the FCRA Dept.

Also in case an NGO’s FCRA expires between 1^st Jan 2025 and 31^st March 2025 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.

Documents requirements made more stringent at the time of Renewal/Application

As per a press report all those applying for FCRA or renewing their FCRA would need to submit key documents like Memorandum of Association/Trust Deed, etc. Further now activity report has to be submitted for each-year and not a generic report, alongwith Accounts, including Receipt & Payment Account for each year.

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

Namaste Sir,

Greetings of the day!

We have been going through the blogs of Socio Research & Reform Foundation regarding FCRA. 

We are Anatta Sangha Trust registered as a charitable public Trust under Indian Trusts Act 1882.

We want to invite foreign volunteers on an E3 Employment Visa to India (for honorary work with an NGO). So that they can work with us voluntarily in our projects for long term.

Kindly guide us whether FCRA registration is mandatory for our Trust to send them E3 visa invites along with our various registration documents. As of now, we don’t have FCRA registration.

We look forward to hearing from you.

Thanking You,

Warm Regards,

Sangha Das

Anatta Sangha Trust

Dear Sir/Madam,

I got your contact information from your website and have a quick question.

• Can a NRI be on the executive committee of a non-profit organization which is applying for FCRA renewal? This NRI still holds a valid Indian passport, Aadhar card etc.

Thank you so much in advance for your advice.

Best regards,

Seshu

Hope this email finds you well and in good health !

I want to understand the following:

We have 12A registered entity that does not plan to apply for upcoming renewal in 2025-26 and continue to file ITR as AOP. 

What are the implications for its accumulated unrestricted funds and building property. Will the IT department charge tax or penalize in any way?

Please Help

Thanks and Regards

Amrut Mistry
IBTADA

Dear Sir,

Recently whilst doing financial review of a foundation I came across the following:

Organisations legal documents such as 12 AA Registration, Society registration document, PAN, and all other documents were in the name of XYZ foundation. Organisation is filing IT and FC return in the name of XYZ foundation

However in the FC renewal registration document the following is mentioned :

The chief Functionary
ABC Hospital funded and managed by XYZ foundation . FC bank account is opened in the name of ABC Hospital and the account number mentioned in the FC bank account is same to what is mentioned in the FC renewal registration document.. Organisation is filing FC returns in the name of : ABC Hospital funded and managed by XYZ foundation

Would like to know
1) Can we go ahead and do partnership with the organisation
2) if answer to the above question is yes- then funds to be released in the name of ABC hospital as bank account is opened in that name whereas entity is registered in the name of XYZ foundation

Please suggest way forward

Thanks
Ratish

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

Para Ref	Field Name	Field Type	Notes:
	Darpan ID :	Auto Populated	This information is auto-populated as and when an entity enters the online platform using its user id & password.
1. (a)	Name & Address       :	Auto Populated
1. (b)	FCRA Registration/Prior Permission:	Auto Populated	This information is auto-populated as and when an entity enters the online platform using its user id & password.
2	Details of Foreign Contribution (FC)
2 (i)
(a)	B/F FC at the beginning of the year:	To be filled	While no auto checks on validation of this infor, make sure this information is in agreement with closing balance of last FC4, although there is no automatic check on the accuracy of the same.
(b)	Income during the year (i) Interest	To be filled	Please ensure this interest is aligned with Receipt & Payment A/c.
	(ii) Other Receipts from Projects/Activities	To be filled	All other income, including sale of assets, etc. Pl ensure whatever income that is disclosed here is deposited in the FCRA Bank A/cs.
(c)	FC rec’d during the FY
	(i) Directly from foreign source	To be filled	Source-wise Total FC amount rec’d during the year to be filled here. Ensure total under this Para and Total FC rec’d purpose-wise under Para 2(ii)(b) of this Form match.
	(ii) from a local source	To be filled
(d)	Total Foreign Contribution (a+b+c)	Auto-populated based on above data	Pl ensure this figure is in alignment with total b/f + receipts in Receipt & Payment A/c.
2(ii)
(a)	Donor-wise detail of FC rec’d	Individual donor-wise details to be filled	1. Under this column, individual donor-wise details of FC have to be given. Note the donor details will need to be selected from a drop-drawn menu. Pl note in case your donor is not included in this menu, then one will need to add the donor details (Name/Address /Purpose/Project Name/Amount, etc.). 2. Note, in case you add any donor with Indian address it will treat it as a Local donor and any FC rec’d from such donor would not be  included in the Purpose-wise total FC rec’d under para 2(ii)(b) below. This will mean that total FC rec’d as per para 2(ii)(b) and as per para 2(i)(c) above will not match. 3. Pl ensure mention purpose as mentioned in your FCRA registration (example, social/educational/religious etc.). Purpose would need to be mentioned under each FC rec’d under para 2(ii)(a)
(b)	Cumulative purpose-wise FC rec’d	Data auto-populated based on details filled under 2(ii)(a)
3	Details of Utilisation of FC
(a)	Project-wise details of Utilisation of FC	Fill-up Utilisation amount Project-wise	1. Pl ensure that total of project-wise Utilisation matches with toal expenditure on programs [reported under para 3(a)(i)] + admin [reported under para 3a(ii)] + purchase of assets [reported under para 3(b)] 2. Pl ensure total of Utilisation is aligned with total utilisation under Receipt & Payment.
(i)	Utilisation as per aims/objectives of Assoc.	Fill-up total programmatic Utilisation	Basically this figure denotes total programmatic expenditure, but does not include any fixed assets procured from FC funds. In case program expenditure separately shown under Receipt & Payment, then it may be ensured that the disclosure at both places is aligned.
(ii)	Administrative Exps. As provided under Rule 5	Fill-up total Admin expenses	1. This represents Admin Exps, as per Rule 5 and should not exceed 20% of FC rec’d. Again this expenditure should be included under para 3(a), i.e. project-wise expenditure. Therefore, Assoc should have one project which covers any Admin exps. Not covered under other projects. 2. Ensure Admin Exps should align with R& P if separately disclosed there.
(iii)	Total (i)+(ii)	This is auto-populated	Expenditure represents total programmatic & admin costs.
(b)	Details of Fixed Assets purchased during the year	To be filled in a Table format	1. These assets should be included under Project-wise expenditure disclosed under Para 3(a) above.   2. Under the column ‘Nature of Project / Activity’ one has to select from drop down menu options are between movable & immovable assets. Select appropriately. 3. Under Details of Fresh Assets fill up appropriate category of asset as per Fixed Asset schedule.   4. Under ‘Objective of acquring fresh asset’ select from drop down menu – purpose out of social / education etc. as per your FCRA registration. 5. Under cost of fresh assets column, pl fill up cost of assets acquired during the year. 6. Ensure assets disclosed under this column are in alignment with R&P.
(ba)	Details of Movable Assets created out of FC	To be filled in a Table format	1. In case this data is matched with FA schedule and if there is a difference between figures indicated under (b) above and (ba), then give reason for same through a Note. 2. Description of Assets to be provided as per category mentioned under FA schedule. 3. Give details as per Gross Assets, as the Table does not include figure for depreciation. 4. For immovable properties, address of the property as well as plot size, etc needs to be mentioned.
(bb)	Details of Immovable Assets created out of FC	To be filled in a Table format
(c)	Details of funds transferred to other person / association.	To be filled in a Table format	1. Normally one does not expect any transfer under this column, this is to identify if any transfers made during the year to other associations, etc. who were prohibited after amendment under S.7 effective Sept’2020
(d)	Total Utilisation (a)+(b)+(c)	This is auto-populated	Pl align with R&P – total payments covering programmatic, admin & fixed assets procured.
4	Details of Unutilised FC
(i)	Total FC invested in FDs		Pl align with R&P – total payments covering programmatic, admin & fixed assets procured.
a,b,c	FD details	To be filled in a Table format	Ensure all details align with your R&P and Balance Sheet
d	Closing bal of FDs	This is auto-populated
4(ii)	Unutilised FC
	(a) Cash in hand	To be filled in a Table format	Ensure aligns with R&P and Balance Sheet
	(b) Designated Bank Bal
	(c) Utilisation Bank A/c Bal
	(d) Total Unutilised (a)+(b)+(c )	This is auto-populated
5	Details of foreigners as Key functionary / associated / working	To be filled in	1.    In case you have any foreigners in Board or working in your organisation. You are required to disclose this information. 2.    Although this may mean a query from FCRA Dept.
6	Details of Land & Building remaining Unutilised for 2 yrs.	To be filled in	If such properties are there, one would need to disclose the details of such properties, as well as reason for non-utilisation.
7	Details of Designated, Another FCRA A/c & Utilisation A/cs to be provided	Details of designated & Another FCRA A/c to be filled,  Utilisation Bank A/cs are auto populated based on information posted on portal
8	Declaration on 15 different clauses	Need to choose each clause by selecting Yes/No – wherever yes is select, it would require to give further details.

Declaration needs to be signed digitally (by pasting digital signature) by Chief Functionary.

Seal of the Organisation also needs to be uploaded.

Following documents further required to be uploaded
i.    Chartered Accountant Certificate (Max 1 MB)
ii.   Bank Statements of all the accounts duly certified by a Bank Officer (Max 10MB)
iii. Audited FCRA Financial Statements (incl. Bal Sheet, I&E & R&P) (Max 50MB)
iv. Separate signed declaration by Chief Functionary (Max 1 MB)

For instructions on uploading of these documents, signatures, etc. pl go to instructions on FCRA website.

https://fcraonline.nic.in/Home/PDF_Doc/FCRA-Scanning-Instructions.pdf

To give more clarity to Civil society sector, regarding taxability of unspent grant, a recent decision by Courts has held that unspent grant cannot be treated as income. In a recent decision in JM Financial Foundation vs CIT[1]Mumbai Income Tax Tribunal has relied on the case of DIT vs Society for Development Alternatives.

CIT (Exemptions) added unspent grants of JM Financial Foundation received during the year as Income. Tribunal after considering the arguments of CIT (E) and assessee, decided that the income of the Trust was to be spent on Ashoka University as per the directions of the donor and hence cannot be stated to be income of the year. It relied on the case of DIT vs Society for Development Alternatives where it was held that the respondent assessee had received grants for specific purposes / projects from the government, NGOs, foreign institutions, etc. These grants were to be spent as per the terms and conditions of the project grant. The amount which remained unspent at the year-end, got spilled over to the next year and was treated as unspent grant.

The Tribunal noted that the grants are not free grants, but the donor require several reporting from the Trust for utilisiung the grant. These grants are can be further subjected to audit by the donor and if remains unspent at the end of the project has to be refunded back.

Thus, these are not free grants which the assessee could use according to its free will, but depends upon the donor requirements. case was on not utilised, remained unutilised and could not be treated as income of the Trust. Thus the matter was decided in the favour of assessee. Relying on the above principles mentioned in Development Alternative case, the Tribunal decided the matter in favour of the assessee.

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[1]https://itatonline.org/digest/verdicts/jm-financial-ltd-v-dy-cit-itat-mumbai/

I have a question, our organization Center for Communication and Change India is registered as Trust (NGO) and we do not have FCRA so far. Is it mandatory for non-FCRA NGOs also to registered on the DARPAN portal of NITI Aayog and get a valid unique ID with updated details to receive funds from CSR or local UN organizations?

I would appreciate your valuable advice.

Regards,

Rajinder Mehra

Dear Sir,

We have received a notice from FCRA department asking to file Annual Returns for some previous years.
However, we have been regular in filing the returns within due date and all these returns are also appearing on the FCRA Portal, still this notice is stating that this is the last chance to submit it.
What does it meant for?

May I request you to throw some light on it?

Regards
Prabhat Kumar

Dear Sir,
Greetings!

We are in the process of filing FCRA Annual Return and facing a challenge
to update the forms related to list of Movable and Immovable Assets.

In the pop up window ( screenshot given below ), we have only 4 fields to enter – opening balance, assets bought during the year, assets disposed during the year and closing balance. We do not have any field to update for the depreciation value in the portal. Kindly advise where to mention the depreciation value so that the closing balance get matched with the current value of the assets ( As on 31st March 2023)

Dear Sir,

We are in a dilemma in interpretation of two terms under the amended FCRR 2011. A hypothetical case is presented here:

1. A person XYZ is an employee of organisation ABC which is registered Trust/Society. S/he is invited by a Foreign organisation PQR which declares itself as ‘…a scientific, Political, and cultural organisation founded in xxx. It is an international network of scholars, health workers, and activists…”

2. Her/his travel, accomodation and other expenses are being met with by another foreign organization EFG. This organisation EFG declares itself as ‘ … one of the six major political foundations in the YYY tasked primarily with conducting political education both at home and abroad.”

3 The organization ABC has FCRA renewal application under process.

4. The organization ABC received substantial grant from State Govt. during past 10 years.

My dilemma is reflected in the following questions:

a) whether XYZ is a public servant as per FCRR 2011/FCRA 2010

b) whether XYZ comes under a ‘foreign hospitality’ as her travel, accommodation etc was paid by a political organisation for a conference organised by a political organisation

c) if it is what procedure should be followed, an NOC is essential from the Chief Functionary

d) if violated, what corrective measures need to be taken, is declaring in FC2 is adequate 

e) what is the interpretation as the organizer and the host which are foreign sources have political education in their objectives

Dhruv
Secretary
VACHAN