Socio Research & Reform Foundation

Dear Members,

Some NGO treat ” Grant utilised ” as Grant Receipt/Income in both – Financial statement and in ITR.

They do not show Grant Received as  Grant receipt/ income.

Is it the correct way as per income tax act ?

Thanks & Regards

Amrut Mistry

Compounding of offences along with penalties

Notes:
1- The amount of penalty shall not be more than the value of the foreign contribution received.
2- Changes mentioned above effective from 1-7-2022.

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

• Qtly disclosure of FC rec’d no longer required
  Rule 13 (b) which required that FC rec’d in a quarter needs to be disclosed within 15 days has now been removed from FCRA rules. This means there is no need for publishing FC received on quarterly basis, either on organisation’s website or on FCRA website.

• Limit exempting reporting of FC from relative increased to Rs 10 lakh
  Present exemption of reporting to FCRA Dept (through FC-1) of an FC received from a relative has been increased from Rs 1 lakh to Rs 10 lakh in a financial year. Time limit for reporting the same has been extended from 30 days to three months.

• Increase in Time Limit of reporting changes
  Earlier all changes in bank accounts, trustees, address, etc. which were required to be reported to FC Dept within 15 days of the change now has been extended to 45 days.

• Revision u/section 32 can be made only through a prescribed document
  There are very few remedies available to a person aggrieved by an order of FCRA Dept. Revision under Section 32 is one of the only remedy available for a person aggrieved from a Order of FCRA Dept. Under this section, a person can make an application for revision of the Order within one year of such an order.
  
  Earlier a Revision could be made on a plain paper, however now the Dept has stated that it should be submitted in electronic format to be specified by the FCRA Dept.

All the above rules have been amended effective 1-7-2022.

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

We are happy to inform you all that Ministry of Home Affairs re-extended the ‎validity of registration certificates of such entity whose validity was extended till 30 June 2022 vide Public Notice dated 24 March 2022 and whose renewal application is pending will stand extended till 30 September 2022 or till the date of disposal of their renewal application, whichever is earlier.

The validity of FCRA entities whose validity period is expiring during 01 July 2022 to 30 September 2022 and have applied/apply for renewal before expiry of 5 years validity period will stand up to 30 September 2022 or the date of disposal of renewal application, whichever is earlier.

The new date for all the organizations whose validity of registration falls between ‎above period will be 30 September 2022.(click here for FCRA Notification)‎

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

Dear Members,

We have received FC fund in SBI FCRA designated accounts.

We transferred the fund to FCRA Utilisation account (other bank).

Can we be allowed to make FD from FC utilisation Bank accounts in different banks for earning higher interest income?

Thanks

Amar

Dear SRRF Team,

I am writing to inquire if any excess funds donated to an FCRA account can be transferred back to the donor?

I am a foreign citizen who had partnered with an FCRA approved Indian non-profit to implement a project in India. I am just an individual not associated with any organization and had donated money from my personal bank account to fund this project. With the project now close to finishing, the organization has unspent funds in their FCRA account that I would like to request back. Can the remaining money be simply transferred back into my personal bank account? I was going through your forum and found conflicting information. Any guidance would be appreciated. 

Thank you. 

Regards,
Anuja Jani 

Dear Members,

I like to know whether the building and assets made by foreign donation collected by an organisation holding FCRA can be given to another organisation on lease basis. Whether lease or rent is permissible by the Ministry of Home affairs.I request to let me know the issue soon please.

Regards

Samir Kr. Halder

Sir,

I have a query that our NGO BRWAS is Registered Under Societies Act 1961, WB (Not FCRA Registered)

A NRI servicing in Singapore. He wants to transfer money for development of School in India .
Can he transfer from his Singapore Bank account?

Gopal Ch Mondal

Thanks for providing information on 80G donations which is really helpful. I have following further queries:

1. Do we need to report all the donations and grants i.e. FCRA and Local or only Local?
2. If FCRA also then what do we need to provide in the unique identification number specially foreign corporate/companies registered outside India?
3. If any donor is an Indian and he/she doesn’t provide his/her PAN or Aaahaar as they don’t want to claim any 80G benefit then how to deal with it or we don’t need to file the same in the statement of return?

Regards

Chander Shekhar

Till FY 2020-21, all donors who gave donations to NGOs, could claim tax benefit under section 80G on the basis of self declaration and attachment of a receipt issued by the NGOs receiving donations. The receipts normally have details of the donor and IT Order reference under which the NGOs had received registration under S.80G. This was open to misuse. Hence effective FY 2021-22, the Tax Dept requires that the NGO should upload details of all donations on IT website in a prescribed format (Form BD). Then NGOs would download the certificates of donations (Form BE) for each donor from IT website itself. In this blog, requirements as well as the deadlines are summarized.

Form 10BE:  This is the format of certificate now prescribed under new Rule 18AB, which every NGO, who receives donation under Section 80G(5)(ix) and Section 35(1A)(ii),  must issue to every donor after downloading from the IT website.

The donation certificate should identify the NGO through its PAN No. and also give the Order No. and the date under which the NGO has been granted approval for S.80G or S.35 registration. Please note this number should be the same as recently issued by the Dept for approval of S.80G registration. This facilitates the identification of the NGO who is issuing this certificate. The certificate apart from giving the name, address of the donor, amount and type of donation, would also disclose any of the following details

• PAN No. or Adhar No.
• In case donor does not possess any of the above details, then s/he can give any of the following ID (Passport No. / Election Id / Driving License No./ Ration Card No.) or any other other Id as disclosed by the donor at the time of giving donation.
• No S.80G deduction is allowed, if donation is in cash and above Rs 2000/-.

The certificates are required to be given to each donor by 31^st May 2022.

Form 10BD: This is a return thatan NGO has to file once a year. For FY 2021-22, the NGO would have already received the donations, it should have already collected all necessary information as mentioned above. This should be now filled in Form BD before the last date. It may be noted that a person can revise this Form, if details filled are subsequently found to be incorrect or require revision for any reason. For FY 2021-22, last date for filing the return is 31^st May 2022 (being 60 days after year-end). The purpose of this return is to understand total donations rec’d by an NGO, it also brings transparency and better control in claims made by donors.

It may be noted, that in case an NGO is not being able to comply with the above requirements, any tax deduction that a person may receive otherwise, may not be available.

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