Socio Research & Reform Foundation

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

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.

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

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 1^st April 2022 instead of 1^st April 2021.

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

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 30^th 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

3. 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 31^st May following the year-end by the NGO.
4. NGO would need to issue certificate (Form 10BE) to donor for the financial year. This has to be issued by 31^st May 2021.

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

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

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

A NGO has FCRA,   running a Training Center (Build out of FC amount), any organisation wants to organise training at this place out of the FC project activities. Need guidance how to book this income in books of account at training center and how to book the expenditure at training organiser NGO. Please guide for further process. 

Thanks 

Kamlendra

Dear Sir/Mam. 

We have NGO. We have been working in rural area since the last 3 decades with foreign donation. I assume that I we will not be able to spend whole amount  deposited in BOI Branch till 31st March 2021. We have to open news FC account in SBI Delhi. I like to know what I have to do with money remaining unspent after 31st March 2021.Is it compulsory to spend all money from the old account within 31st March, 2021?

Please let me know soon.

Regards.

Samir Kr. Halder