Socio Research & Reform Foundation

Dear All,

Greetings from Hyderabad!

Can the own funds of the NGO be converted into Corpus Fund based on the decision of the BoT/GB?

Thanks and regards,

—
B V Soma Sastry

Dear All,

Greetings from Hyderabad!

This is with reference to the 85% utilization as per the provisions of the IT Act. My query is as under:

There are certain projects for which funds are not received in the FY as the funds of the previous years are still with the NGO. Do we have to consider the expenditure for calculation 85%. The receipt was already considered in the previous year and so that has been accounted for as part of the accumulation.

The second aspect is the interest earned on the NGOs own funds and the expenditure incurred from the said receipts. Should we treat the interest as receipt and the corresponding expenditure for working out 85% utilization.

Kindly respond.

Thanks and regards,

B V Soma Sastry

Dear Sir

I wanted to know if there is any notification /guideline (other than income tax requirements) regarding full utilisation of grants/ donations received by an NGO. This assumes importance in view of the CSR provisions of Companies Act 2013.

Many thanks and regards

Joy Jain

Dear Friends,
Wish you all Happy Tamil New Year Day.

Is 80-G mandatory to get CSR funds by a Voluntary Organisation?

V.B.Chandrasekaran,
Chatti Mahatma Gandhi Aashramam,
Chatti Post, Chinthur Mandal, Khammam District,
Andhra Pradesh, Pin Code: 507129

Respected sir/friends

Please gave your suggestion on Interest received from FCR Account. Actually as per the directions of the funding agency we transferred the amount from FCR Account to General Account (spl account only for those funding agency) for the operational  purpose. On quarterly basis. Now we got some interest from this (general bank a/c).  we feel this is also treated a FCR Account or Not?

Please give your suggestions on this issue.

SV Reddy
Finance Officer
HELP, 2nd lane, Sujatha nagar,
Lawyer pet Ext, ONGOLE – 523 002. A.P

I have now joined another NGO called “Pratham Books” in Bangalore. They are into developing, publishing & distributing children’s books in various languages and promoting reading habit among children.

I have a query in this. We receive grants/donations from various Donors to develop and distribute books. When Donors are Foreign based, we receive grant in FCRA account. But since, development and printing done in India, books are accounted and stocked in our Local Books, from where we distribute it. Can we transfer Foreign money to our Local account for this distribution? Can opening a Utilization Account will help us?

Looking forward for your response.

Regards
Pragya

Please note that there has been some important changes in online filing of FCRA annual return (FC-6).

As per FCRA department, now there is no need to submit hard copy of FC-6 to the ministry, you have to upload scan copy of the all supporting documents to the ministry website at the time of filing of online FC-6. The new instructions for online filing of annual form FC-6 state that final submission can be made after uploading the scan copy of the following documents:

– Chartered Accountant Certificate &
– Declaration Certificate of Chief Functionary of the FCRA registered association.

The Annual Return submitted online will be treated as final version and there is no need to submit paper/hard copy of the Return to the Ministry of Home Affairs.

Thanks to Mr. B. V. Soma Sastry for bringing this to the attention.

However it may be mentioned that while the Dept. has stated that there is no need to file hardcopy, please note that as per Rule 17 (1) requires filing of financial statements and Rule 17 (6 ) requires submission of bank statements. Further Online instructions 12 still requires hardcopy to be filed.

Hence as a prudent accountants, we should continue to file hardcopy of returns as we have been doing in past in addition to online filing of documents required.

__________________________________
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in;
website: http://www.srr-foundation.org