Can a Donor take over assets purchased from grant funds

Posted on March 1, 2014 by SRRF

Dear Sir,

We are a principal recipient of foreign funds and we have given sub grants to some organization.Out of the subgrant money , the subgrantee have purchased several assets which includes Furniture and equipment.

As part of the contract , it is mentioned that Assets can be taken over by principal recipient after the end of contract period .

My question is that can we (principal recipient) take over the assets bought by sub grantee out of these funds? ( the invoice of the assets is in the name of sub grantee).

Regards,

Jiwan

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Posted in FCRA, TAX, LEGAL | 5 Comments

Is separate PAN required for LIC Gratuity Scheme?

Posted on February 26, 2014 by SRRF

Greetings from Satvik : Promoting Ecological Farming. 
 
We are NGO working in Kachchh district. Recently we have opted Employee Group Gratuity Scheme of LIC. We were advised to seek approval under Part C of the Fourth Schedule of the Income Tax Act from office of the Income Tax Commissioner.
 
Office of the Income Tax Commissioner has asked us to obtain separate PAN Card (than the NGO) for EGG and file annual return as ITR – 7.
 
Since long we are in NGO field. We have observed that this is not in practice. Please suggest does it mandatory and explain your view.
 
Warm regards,
 
Nikita Gor
—
For,
Satvik : Promoting Ecological Farming
A-59, Changleshwar Society
Mundra Relocation Site
Bhuj – Kutch (Gujarat) 370001

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9th ASER Report – Lessons to be learnt ……..(3)

Posted on February 25, 2014 by SRRF

It is good to see a lot of interest in this series on ASER Report, as evidenced by a number of responses to earlier two posts. In today’s post certain pertinent issues are highlighted on lessons to be learnt from the report.

  • Decline in the learning standards has become a consistent trend and there is a need to go deeper in the reasons for the same to take corrective actions. Obviously teachers are not able to get their students to learn, one needs to go into the reasons.

–  Are they overburdened by the heavy syllabus required under RTE, thus focus has shifted from learning to completion of syllabus ?

–   Has Continuous Comprehensive Evaluation (CCE) format under RTE, where no child can be detailed till VIII, is affecting the learning by the children ?

  • Another important aspect one learns from this Survey is that enrolment in private schools is rising. All India : 29% (2006: 18.7%). Manipur & Kerala have more than 2/3rd in private schools. Is learning level in private schools better. Data in the report seems to suggest so, in 2010, 33.2% children in class III studying in Govt schools could subtract, compared to 47.8% in private schools. However in 2013 the gap has widened with only 18.9% in Govt school compared to 44.6% in private school. Question one could raise is spending on Infrastructure helping learning?

_____________________________ 
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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9th ASER Report highlights……..(2)

Posted on February 17, 2014 by SRRF

Bad news of falling standards of education – Statewise status:

Class III-V

– Students who can read text of Class I

All India 55%

TOP 5

BOTTOM 5

Mizoram

80.2%

Madhya Pradesh

38.1%

Meghalaya

80.0%

Jharkhand

45.4%

Manipur

78.7%

Assam

46.4%

Himachal Pradesh

78.5%

Uttar Pradesh

47.8%

Kerala

77.8%

Bihar

47.9%

– Students who can subtract

All India 39.7%

TOP 5

BOTTOM 5

Mizoram

77.8%

Madhya Pradesh

22.3%

Sikkim

72.3%

Chattisgarh

27.7%

Manipur

67.2%

Maharashtra

31.7%

Punjab

66.6%

Gujarat

32.3%

Himachal Pradesh

65.3%

J&K

34.9%

Class VI-VIII

– Students who can read text of Class II

All India 65.7%

TOP 5

BOTTOM 5

Kerala

87.9%

Puducherry

49.8%

Himachal Pradesh

86.4%

Madhya Pradesh

51.2%

Manipur

83.1%

Assam

52.6%

Mizoram

82.5%

Tripura

55.3%

Punjab

82.0%

Tamilnadu

56.9%

– Students who can divide

All India 38.9%

TOP 5

BOTTOM 5

Mizoram

72.3%

Assam

19.0%

Sikkim

63.3%

Madhya Pradesh

25.2%

Manipur

62.6%

Gujarat

26.8%

Punjab

61.7%

Chattisgarh

26.9%

Himachal Pradesh

59.1%

Tamilnadu

28.2%

_____________________________
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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9th ASER Report highlights

Posted on February 14, 2014 by SRRF

Recently 9th Annual Survey Education Report report conducted by Pratham has been released. It has several important and interesting findings. SRRF Dialogue would undertake a series of releases on the important findings of the report.

First the good news:

  • Over 96% children have been enrolled in schools in the age group of 6-14. This result is consistent for last several year reports, indicating a major achievement under RTE of getting the Children to schools.
  • Infrastructure in schools has improved significantly over the years.

– 87% provide mid-day meal
– 76.3% schools have office-cum-store
– 73% have drinking water
– 62% offer a playground
– 62% have a useable toilet (from 47% in 2010)
– 53% provide girl students a separate useable and unlocked toilet (from 33% in 2010)
– 56% are protected by a boundary wall

  • On the quality aspect, while there are plenty of bad news, again first the good news. Pupil Teacher Ratio (30:1) has improved from 38.9% schools meeting this norm in 2010 to 45% in 2013.

Bad news is that there is decline in almost all learning standards from reading to simple arithmetic.

  • Only 47% children of V standard could read books of II standard. This has consistently declined from 53% in 2009. In Govt schools only 41% could read (a decline from over 50% in 2009).
  • Only 19% students of class III could subtract (from 36.5% in 2009). In private schools this test could be done by almost 50% student though there too some decline has taken place but it less steep. (from 44.6% in 2009).
  • In govt schools only 21% could divide (from 36% in 2009). While combined private and Govt schools around 26% could divide (from 38% in 2009).
Tomorrow how states have performed on these important parameters.

_____________________________ 
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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FCRA Prior Permission – Need a Clarification

Posted on February 7, 2014 by SRRF

We have an National Outreach Programme Core team project to fund the Core team @ Rs 31 lakhs pa initially.  We asked the donor in May 2013 for a 5 year MOU but sent him a one year budget of Rs 31 lakhs for period July 13 – June 2014  The donor agreed to 1 year and Rs 25 lakhs and we have a 1 year MOU with him for the Rs 25 lakhs and the signed MOU came back only in January 2014.

We are now applying for the FCRA Prior Permission. 

Qn 1. If we apply for Rs 25 lakhs or even Rs 31 lakhs one year project, attaching the MOU and letter of commitment from the Donor, then we can’t apply again for another 6 months till September even if we find another donor. Is that correct?

Qn 2. If we put in the project for 2 years,( till we get our permanent FCRA registration,  then we can add more donors to the same project before 6 months.  Is that correct? Please clarify

Many thanks

Arvind Kumar

Posted in FCRA, TAX, LEGAL | 4 Comments

Liberal interpretation of investment by Trust

Posted on January 30, 2014 by SRRF

As many of us would be aware that a Trust’s income as per S. 11 is exempt if it obtains S. 12A exemption certificate. However this does not cover capital gain and Trust is subject to taxation on the same. Of course a Trust like anybody else can take benefit of the exemptions available under the Act.

In a recent case, a Trust had a capital gain on sale of an immovable property. To mitigate the same it invested in REC Bonds (Relief under S. 54EC). However the investment in the bonds was in the name of the Trustees and not the Trust. ITO as well as Commissioner disallowed this investment and charged tax on the full capital gain amount. However Ahmedabad Tribunal decided in the favour of the Trust, stating that more liberal meaning has to be taken as long as funds had been transferred from the bank account of the Trust, even if investment was in the name of the Trustees.

This decision could be useful for such trusts / societies who make such mistakes for one reason or other.

However one needs to be careful while liberally using this judgment, since the tax authorities could use S. 13 (2) for disallowing such exemption.

_____________________________ 
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

Posted in FCRA, TAX, LEGAL | 1 Comment

Neo Natal Infant Mortality Rate major contributor to IMR

Posted on January 27, 2014 by SRRF

India’s Infant Mortality Rate (no. of children dying within one year of birth) has come down significantly to 44 per 1000 (compared to 63 in 2001). Major contributor, almost 70%, to IMR is neonatal mortality rate (NMR), i.e. children dying within 28 days of birth.

NMR stood at 37 for a long period during 2004-07, but in 2011 it has come down to 31 per 1000 live births. While Kerala has the lowest NMR of 7, while MP has the highest of 41, followed by UP, Orissa and Rajasthan. India’s dip in NMR of 6 percent stands out as the average Global rate of decline is only 1.6% in the last decade. However this decline is national average could not have been achieved unless the states mentioned above had not improved dramatically, since these constitute the largest number of children born.

The improvement is being attributed because of certain new initiatives undertaken under NRHM, which include setting up of special new-born care-units and new born-stabilisation units alongwith training of around 96000 persons in essential newborn care.

But as the figures indicate there is still long distance to be covered by most states to reach what Kerala achieved long time ago.

_____________________________ 
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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Time-bound service

Posted on January 25, 2014 by SRRF

CBDT has issued instructions to all Chief Commissioners and Director Generals of Income Tax that wherever applications are made for no TDS deduction or TDS deduction at a lower rate under S. 197, these must be disposed off within 30 days of receipt of such applications. This is in accordance with the Commitment made to citizens as per Citizen’s Charter.

It may be worthwhile to note some of the other relevant services covered in the Income Tax Citizen Charter and time-commitments.

Decision on application for grant of exemption or continuance thereof to institutions (University, School, Hospital etc.) under section 10(23C) of the I.T. Act 12 months
Decision on application for approval to a fund under section 10(23AAA) of the I.T. Act 3 months
Decision on application for registration of charitable or religious trust or institution 4 months
Decision on application for approval of hospitals in respect of medical treatment of prescribed diseases 3 months
Decision on application for grant of approval to institution or fund under section 80G(5)(vi) of the I.T. Act 4 months
Decision on application for no deduction of tax or deduction of tax at lower rate 1 month
Redressal of grievance 2 months
Decision on application for transfer of case from one charge to another 2 months

Several NGOs who may have filed such applications thus could follow-up with the concerned authorities regarding early resolution of their applications.

_____________________________ 
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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CENSUS Results for Delhi

Posted on January 22, 2014 by SRRF

As per Census 2011 Delhi’s population is 16.8 million (2001: 13.85 million). Male: 53.53%, Female 46.47%, children (0-6) 12%.

Total number of households 3.44 million (Urban 97.5% Rural : 2.5%).

It is the most densely populated city, with 11320 persons living per sq km (2001: 9340). North East district is the most dense district in the country (if not the world !) with 37,360 persons per sq km (2001: 29,468) with an increase of around 27% in the density over 10 year period. In stark contrast New Delhi population density is only 4057 per sq km.

Such high density obviously puts huge challenges for the administration, particularly when one considers the national average population density which is 382. Increase in population density has put Delhi’s Housing under strain, as an economic survey of Delhi shows that more than 50% of the households accommodate more than 5 persons in a household.

While per capita income of Delhi at Rs 2.01 lakh per annum is almost three times the national average of Rs 68,747/-.

However despite a perception that large number of women work in capital, census finds that only 10.6% of total women population is working, compared to 53% of male population. Connaught Place has the highest female working population (25.3%) and lowest in Seelampur (only 5.2%).

Other major indicators for Delhi are as follows:

National Av. Delhi………
2011 2011 2001
Sex Ratio
Literacy rates
Male Literacy
Female Literacy		 960
72.9%
80.9%
64.6%		 868*
86.2%
90.9%
80.7%		 821
81.7%
87.3%
74.7%
*Though quite dismal when compared to national average, however this is first time that it has reached this level since 1901, when it was recorded at 862.

_____________________________ 
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008

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