Requirements for filing applications for re-validation of S.12AA / 80G /S.10(23C) which was to be applied between 1st June – 31 August has now been extended to 1st October 2020 to 31st December 2020.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Dear Sir,
It was proposed in the budget about re registrations of NGO’s under 12AA & renewals of 80G. Is there any guideline released by Income tax Dept in this reg
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Thanks & Regards
Abhijeet
Recently FCRA Dept has sent letters to all NGOs registered with it, seeking support of non-profit community in fight against COVID-19 (click here to download). Some of you have wondered what should be the response of the CO community in this regard. First of all let us be clear, that the letter is straight forward seeking support, it does not make it mandatory on NPOs to undertake initiatives on COVID-19.
We are also clear that India is facing an unprecedented situation, where huge number of persons, particularly vulnerable, have been thrown out of their livelihood means. Many of these persons face huge uncertainties regarding shelter & their next meal. Further medical personnel, who at present are the frontline warriors in this fight against the pandemic, are facing huge shortage of Personal Protective Equipment (PPE). I am sure there are a number of other areas, as listed in the FCRA letter, where there is an urgent need for support & resources, both financial, material and of personnel.
CSOs have always been in the frontline when it comes to supporting needy & vulnerable. I am sure many are already doing their best in the present circumstances. It is suggested that VANI has taken the lead to collate all such initiatives. It is suggested that whatever actions that you may take, please do put it out in public domain, so as to make Public at large aware of the contributions of the Sector. You could also reach out to VANI at their Google page or simply send it on their email info@vaniindia.org.
Hope this clarifies the context of the FCRA letter that many of you have received.
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Socio Research & Reform
Foundation (NGO)
512 A,
Deepshikha, 8 Rajendra Place, New Delhi – 110008
SRRF understands the anguish of all who have commented upon the importance of keeping CSR funds flowing to voluntary sector. Aurobindo society has taken the initiative to write to the Prime Minister on this aspect. Please see the letter on following link (Click to download Representation Letter) that they plan to send to tomorrow itself. If you largely agree with the contents of the letter, please either send a mail to SRRF at (socio-research@sma.net.in) or just send your name designation, and organisation’s name endorsing the letter. Target is to give a list of 500 NGOs name endorsing the letter. We appeal to all of you who represent their organisation or can request their organisation to put their name on it, we would forward the same to Aurobindo Society, to add your organisation’s name.
Since time is short, letter is being sent tomorrow morning through a Minister, we request you to please endorse it in large numbers. As the letter says it is an existential crisis for the Sector, and we must not hesitate at this moment.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
As the last date for submitting response in regards to the proposed changes in “CSR Rules” is approaching fast (28th March 2020), It is requested please do post your comment at the earliest.
SRRF has posted comment on MCA portal. Please visit the following link to get copy of the same for your reference.
http://blog.srr-foundation.org/wp-content/uploads/2020/03/SRRF-MCA-Response-Mar20.pdf
Comments have to be submitted for each rule, so having a pre-prepared document ready at hand will facilitate posting the comments.
SRRF appeals to everyone associated with the Sector to post comments, since more number of comments would force the Govt to reconsider this rule which will impact resources of the Voluntary Sector in a major adversarial way.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Ministry of Corporate Affairs has clarified vide it’s General Circular No. 10/2020, dated 23.02.2020; that spending of CSR Funds by companies for various activities related to COVID-19 under Schedule VII of companies Act 2013 is an eligible CSR activity. (Click here for circular)
Funds may be spent for various activities relating to
Socio Research & Reform Foundation (NGO)
512 A,
Deepshikha, 8 Rajendra Place, New Delhi – 110008
A detailed note has been prepared on proposed changes in CSR Rules, highliting all the changes you may go through the same. You may read it here.
Considering Trusts and Societies are no longer allowed to receive CSR Funds, it is strongly recomended that all shoule post strong objection in comments to Ministry of Corporate Affairs. Link is again given here http://feedapp.mca.gov.in/csr/
We look forward to hearing from you on any queries/clarifications required.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Changes in CSR effectively rule out ‘Societies’ & ‘Trusts’ from accessing CSR funds
Another blow to the Non-Profit Sector by the Govt. Ministry of Corporate Affairs has brought out draft rules for changes in CSR rules. The proposed rules now specify that only following entities can implement CSR Projects.
This effectively rules out Societies or Trusts from accessing CSR funds. Considering Societies/ Trusts form 90% of NGO sector organisations, this will impact most NGOs.
However all is not lost, these are still DRAFT rules, and govt has invited comments from public. We are giving a ready link for you to connect to the webpage, where you can give your comments.
In view of the severe adverse impact that such a change would have on NGOs finances, we request all to submit comments asking Govt to reconsider removal of ‘societies & trusts’ from accessing CSR funds. In this regard, we can request that old rule which required at least three years successful track record for all NGOs, irrespective of legal format be continued.
Soon we will bring a comprehensive note on proposed changes in CSR Rules on this forum itself.
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Socio
Research & Reform Foundation (NGO)
512 A,
Deepshikha, 8 Rajendra Place, New Delhi – 110008
En masse Inspections by Govt
Further to our last post on this subject (http://blog.srr-foundation.org/?p=3860), it is now clear that FCRA Dept has issued notices en masse to a large number of NPOs, with large amount of funds under FCRA. These are not just international NPOs, who are registered in India, but also include totally Indian NPOs, who receive large FCRA funds. In this post we examine the legality of notice that has been served to these NPOs.
Notice has been issued under S.23 of FCRA 2010 to undertake inspections. S.23 obligates the Govt to ‘record in writing any ground to suspect that any provision of this Act has been or is being contravened’. The words record in writing is important, and the Dept must not only record these reasons in writing but also disclose the same when asked for.
Some have argued that the notice issued does provide reasons as it state that the Govt ‘has reasons to believe after a preliminary scrutiny of the Annual Returns that some provisions of the FCRA Act have been violated’. Exactly same language has been used in all notices. However this is too general while reasons to be recorded need to be specific.
In fact S.20 of FCRA Act provides for an audit exactly on the grounds mentioned in the notice. One may wonder then why has FCRA issued the notice under S.23, where one could challenge the Notice, and not under S.20. It may be noted that S.23 authorises the authority appointed to seize accounts and records and produce before the court. This could initiate a series of actions which would not remain within the control of the NPO. Further it may be noted that S.23 requires that the person to undertake inspection must be a gazetted officer holding Group A post. Though the section goes on to authorize the Dept to authorize any other officer or organisation to undertake the inspection, one needs to carefully examine the legal ramifications of the same.
In conclusion, it is time for NPOs to weigh carefully consequences of not challenging the notice and submitting themselves for inspection under the belief it to be a routine inspection.
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Socio Research
& Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Notices under S.23 of FCRA Act. 2010
It has come to our knowledge that currently several International NGOs are receiving notices from FCRA Department for various reasons including inspection under S.23 of FCRA Act 2010.
This seems to be first time when routine notices are going to several International NGOs in one go. Seems latest development in relationship between Government and International NGOs.
Socio Research & Reform
Foundation (NGO)
512 A,
Deepshikha, 8 Rajendra Place, New Delhi – 110008
