Socio Research & Reform Foundation

Cancellation of S.12 A registration

As tax authorities are more and more resorting to cancellation of charitable status of Trusts, a Punjab High Court decision would come as a relief.

As per the decision, Income Tax authorities must record findings in writing that a Charitable Trust is either not undertaking its activities in accordance with its objects or the activities stated are not genuine, before issuing an order for its cancellation of S. 12A registration.

This is a pre-condition before cancellation of the registration, since the Trust originally is registered under S. 12A after due consideration of its activities.

[Case CIT, Ludhiana vs Ved Niketan Dham, Public Chaitable Trust, (2013)]  

Denial of S.80(G) Relief
In another case, Delhi High Court rejected an appeal by tax authorities for denying S.80G relief to a charitable trust.

The tax authorities argued before High Court that the charitable trust did not maintain regular accounts as required under S. 80G (5) (iv). However the Court rejected appeal by the tax authorities on the ground that Director IT (Exemptions) order only talked of minimal level of activities undertaken by the Trust and did not elaborate on non-maintenance of accounts. Hence the Tribunal Order setting the same aside was valid.
[Case Director Income Tax vs Neel Gagan Charitable Trust, (2013)]  

From the above two decisions it is clear that order issued by the Tax authorities must be read very carefully. It is essential that order complies with all requirements of the legislation  to be legally compliant.

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

Dear Friends,
Greetings from Hyderabad!

I am writing this mail to seek clarification on the issue of advancing FC funds to the staff of the organization. These advances could be in the form of salary advance, travel advance, program advance or any other advance required for the smooth functioning of the project.

1.       Will this amount to mixing of NFC and FC funds?
2.       If yes, what is the recourse?

Looking forward to hear from you on the issue.

Thanks and regards,

Soma Sastry

Following query received from Mr. Sunil Kumar Suryavanshi on the topic “Clarification for preparing FC-6”. Kindly provide your responses.

Dear All

We have registered under FCRA and regularly filed FCRA return. There is one confusion, we have purchased some assets for implementation projects like computers, laptop and other office equipments.

Kindly suggest the what purpose need to be indicated for expenditure in FC-6, since there is no specific row for fixed assets.

With Regards
—————————————
Sunil Kumar Suryavanshi
Accounts Department
SAMARTHAN CENTRE FOR DEVELOPMENT SUPPORT
36, Green Avenue, Chuna Bhatti, Kolar Road,
Bhopal M.P. 462 016

Following query received from Mr. K. Swamidas, on changes in FCRA Bank account.

Sir Good Morning

I,  K. Swamidas, I have FCRA ( my society name: Live For Christ Ministries). My FCRA bank a/c changed. My FCRA bank old number 5 digit numbers, presently changed 11 digit numbers. Sir how to tell and write my problem to ministry of home affairs, FCRA, Delhi. Please tell me.

thank you.

K. Swamidas,
Live For Christ Ministries,
Andhrapradesh.

We have received following query from Mr. Priyamvada Singh. Kindly give your responses.

• We have our trust registered in Bangalore Karnataka under the Trust Act since Dec. 2003 and having FCRA certification (permanent) since 2009. Our FCRA bank account is in Bangalore with HDFC bank; we are having our programme operations in several states of India.
• We want to know whether the Trust can shift Trust’s FCRA bank account to the other city (or Delhi) to manage its FCRA grants and operations from a better suited place? Kindly note that we have existing FCRA grants being revived /managed thru this bank account.
• If such shifting of FCRA bank a/c is permitted from one city to another under the FCRA Act, then what are the processes and formalities one need to under go for such shifting of the FCRA bank account? Kindly list all the steps and the requirements to be in compliance with the FCRA act obligations.
• How much time this process takes?

Thanks and Regards

Priyamvada Singh, Ph.D
Development Consultant,

We have received following query from NASEOH on the topic “FCRA Annaul Returns”. Kindly give your responses.

Dear Sir,

We had filed our Annual Returns under FCRA with the Ministry of Home Affairs, Govt.of India, for the financial year 2011-12, before the due date i.e. 31st December 2012 offline.

On the website of Ministry of Home Affairs, we are listed under “Returns Non Filed NGOs” for 2011-12. Kindly clarify whether online filing of Returns in form FC-6 was mandatory for the year 2011-12 even though we had filed the Returns in hard copies.

With regards,

NASEOH
(National Society For Equal
Opportunities For the Handicapped)

Dear Team,

How many years we have to keep the financial record s.

Regards,
Manish Justin
Accounts Officer
Adventist Development and Relief Agency India (ADRA India)
45 Kusum Marg, Block H, DLF Phase I
Gurgaon, 
Haryana – 122002, India