Socio Research & Reform Foundation

Dear Sir,

We have a registration under the FCRA Act. We want to close an existing one utilisation bank account. Is it necessary to take any prior permission from the FCRA Department of the MHA? Or is it necessary to intimate the FCRA department about the closure of the utilisation bank account? If yes. In the FCRA website there is no form for the closing of utilisation bank accounts?What is the form to be filled? 
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Thanks & Regards,

B Satheeshkumar

Dear Sir/Madam

One of our client running charitable society having FCRA registration want to appoint collecting agent in foreign country for receipt of foreign donation.Agent will collect the amount in his account in foreign country and deposit the amount in Indian FCRA account of society giving list to the society with name and passport no of donee. Society will issue receipts to the respective donees.Is this legally possible and is there any RBI/FEMA violation by doing so?

CA Arvinder Pal Singh

IMPORTANT JUDGEMENT PRONOUNCED TODAY in HC of Delhi in W.P.(C) ‎‎6031/2021 & CM APPL. 19077/2021, CM APPL. ‎19078/2021 on 01.07.2021‎

As per Section 12 of the FCR (Amendment) Act, 2020 amended Section 17 of the ‎FCRA and, by virtue of said amendment, foreign contribution can be received only in a branch of the State Bank of India (SBI) ‎located at New Delhi, to be specified by notification by the Central Government.‎

In tandem with this amendment, para 7(a) of the FC-4 Form(which has to be ‎submitted online), too, accepts the entry only if the account is in the SBI, New Delhi Main Branch, 11, Sansad Marg, New Delhi -11001 ‎which was, vide notification no. 3479(E), dated 7th October, 2020, prescribed as ‎the bank in which the FCR account is to be opened.‎

The petitioners submit that this has resulted in a peculiar situation in which, ‎though 31st March, 2020 would be the relevant date for filing of the return for the year 2019-2020, the requirement of the account ‎under the FCRA/FCR Rules being in the SBI, New Delhi was introduced only in ‎September, 2020 and the bank was notified only on ‎7th October, 2020. Prior thereto, the petition asserts that there was no ‎requirement of the FCR account being in SBI.‎

The petitioners’ accounts wherein foreign contributions were received were not in ‎the SBI, previously. As a result, the petitioners submit that it has become impossible for them to submit
the return under FC-4 Form for the year 2019-2020.‎

JUDGEMENT ::‎
The citizen cannot be penalised for a discrepancy in the form prescribed by the ‎respondent which has resulted in the form being unable to be submitted even in ‎the case of a law abiding citizen.‎

In view thereof, till the next date of hearing, the respondent is restrained from ‎taking any coercive action against the petitioner for failure to file the requisite return under the FC-4 Form before 30th June, 2021.‎

In case the respondent comes up with a solution to the impasse, it is at liberty to ‎move the court by way of an appropriate application so that a quietus can be can be ‎achieved to the dispute.‎

Oliver Rayi

One of our NGO has received new bank account details of SBI New Delhi after 01-07-2021 so they could not file form no. FC-4 upto 30-06-2021. Now at the time of filing the form FC-4 system asks for a penalty of Rs. 1,00,000/-or 5 % of Foreign Contributions received whichever is higher. It may be noted that it was mandatory to mention new bank details in FC-4.

Kindly advise in this regard.

Regards

Thanks

Please clarify whether Overseas citizen of India (OCI) can be the president of an NGO registered under FCRA.

Regards

A.P. Singh

Dear Members

Greetings from the IRDWSI!

Query regarding Sale of land and buildings bought from FCRA funds.

We would like to have any information regarding sale of assets bought from FC Funds before 2020 Amendment and to be sold after the amendment of FCRA 2020

Please guide us what are implications from FCRA and IT in the changed and amended act. Looking for your advise in this regard,

Thanks and regards,

Stanley

Respected all

Our organisation is working in Rajasthan on various issues of the area and development issues. We have a training center here in the city built with FC fund. As we hear from here and there that as per the new provision of the FCRA, we can’t  receive  charge/ reimbursement  from outside organisations who want to organise their program here in the training center , These organisations want to organise training from their FC grants. Need guidance from respected members on the actual facts on this issue. How can we receive the charge of training organised : 

1. If we ourselves organise a training as our program  with  FC Grants of our own organisation.
2. If we ourselves organise a training as our program  with  Local Grants of our own organisation. 
3. If an outside organisation organises a training  with FC-l Grants as their program.
4. If an outside organisation organises with Local Grants as their activities.  

Please suggest us the best possible practice, 

Thanks with regards 

Kamlendra Singh 

Ministry of Finance has decided to extend following major dates, where NGOs have direct stake:

 Note: This is not a complete list for complete list (click here)

This will bring a huge relief to entities who were not able to file their Form 10A & 10AB due to web-portal issues, will heave a great sigh of relief.

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

Dear Sir,

I am Finance Manager at an NGO.  

We maintain Books of Account for All Donor Project wise separate for each donor.

Now we had an Community event  (Six Monthly /Yealry). We had booked Event Expense in one head ” Community Event Expenses Sep-20″. This Expense include Travel Expenses , Food and Snacks, Flower bouquet, Supplies etc. All with each and every bill attached with proper Excel Sheet details. Now Auditor raised query that we should book Expenses “Nature wise” Like for- Food Expenses , Travel Expenses, Transport Expenses, Supplies expense all this in different Head Under Community Event Expenses. We told them we could not do so as their are many recurring program expenses at different project’s and diffreenet Funder.

Please Advice is their any specific requirement to provide the Expenditure Nature wise also to CA/Auditor laid by ICAI.

Thanks

Amar

This is just a reminder to those who have not yet filed their FCRA Annual Return (FC-4) for the Financial Year 2019-20.

“Please note last date for filing FC-4 is 30^th June 2021”

Applications for Annual Return have to be filed online, considering huge rush gathering, DON’T WAIT FOR THE LAST DATE. As often on last date one may face heavy traffic, and may not be able to access the website so easily.

Some important points to be taken care of before filing of FC-4 FY 2019-20 were as follows:

1. You can file this return, only if your organisation has been able to open FCRA Designated bank a/c in SBI, Main Branch, Parliament street, New Delhi- 110001.
2. Organisation must have Darpan unique ID before filing FC-4
3. FC4:
   1. Donor-wise details of FC rec’d
   2. You would need to give project-wise details including opening balance, receipts, utilisation and closing balance. Please ensure total of these details matches with other figures in the return.
   3. Total exp. on objects of your Association and Administrative Exps.
   4. Total purchase of Fresh Assets (during the year)
   5. FC transferred to other Associations during FY 2019-20
   6. In the Final Form Total Utilisation is auto-populated (e). This includes     (b) Total utilisation including Admin Expenses + (c) Total purchase of Fresh Assets + (d) FC Transferred to Other Association. Pl ensure e=b+c+d.
4. Documents required for filing FC- 4:
   1. Duly sign CA Certificate.
   2. Declaration to be sign by the Chief Functionary.
   3. Audited FCRA Financial Statements for the FY 2019-20. Pl ensure figures match with total figures declared in FC4.
   4. FCRA bank a/c statements duly certified by the banking officer.
   5. You may add any other document considered necessary by you.

Wishing you all the best in filing your Annual Return correctly and in a timely manner.

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