Interest on loans – is it commercial activity?

Posted on December 13, 2012 by SRRF

Dear Friends,

Greetings from CWS!

I have the following query:

1. We are providing drip irrigation kits to farmers wherein there is a subsidy component of 50% from the Agriculture Department, Govt of AP, contribution from farmers and CWS contribution from the project. The project is funded by EU

2. The farmers are finding it difficult to raise Rs. 20000/- as their contribution which is delaying the process.

3. CWS plans to give loans (interest free) to farmers so that their contribution can be raised and the farmers will return in money in equal instalments over a period of time. These loans are given out of local account.
My specific query is:

1. As an NGO, can we give such loans?

2. Will charging interest amount to commercial activity? Although we are not charging interest, I am trying to clear my doubt
I would request response from you end on this.
Thanks and regards,

__________________
B V Soma Sastry
Director – Finance and Admin
Centre for World Solidarity

Posted in FCRA, TAX, LEGAL | 3 Comments

Learnings for Lokpal / Lokayukta Institution

Posted on December 4, 2012 by SRRF

As talks of Lokpal Bill during the current Parliament Session resurface, it is time to look at a study undertaken by researchers at Azimji Premji University’s Law & Governance Initiative, on working of the Karnataka Lokayukta, for important learning about working of the Lokpal / Lokayukta institution. Some of the pertinent findings are:

  • While demand has been that Lokpal be endowed with powers to suo moto initiate criminal investigation, however evidence points that between 1995-2011 Karnataka’s Lokayukta only carried out only 357 suo moto raids as compared to 2159 cases where it took action based on public complaints. Thus major source of taking action was based on public complaints and not suo moto action.

  • Most of the cases filed against various officials are belonging to lower cadre. Only 0.8% cases relate to IAS, IPS, IFS and KAS cadres. This indicates that there is a need of separate wings for ensuring proper allocation of manpower and resources with special skills for dealing with different levels of corruption. Combining all the powers in one institution may become inefficient way of handling the resources.

  • Huge perception has been built that delays in receiving sanction for prosecution from the concerned department is a major hindrance in taking action, however in Karnataka in 95% of the cases investigated, sanctions were rec’d for prosecution.

  • However real problem is long delays in trial and low conviction rates. Most cases under trial are more than 5 years old. Further only in 16 cases convictions have taken place, which is around 20% of the completed cases. In other words 80% cases have not been convicted. This does not compare favourably with criminal convictions in India in anti-corruption cases, which is between 34-40%.

Thus during current debate on Lokpal, while a lot of energies are being spent on coverage of persons and what powers the Lokpal will have, no thought is being spared on how to get a better conviction rate.

Posted in Accountability | Comments Off on Learnings for Lokpal / Lokayukta Institution

More than 20% increment in High Networth Individuals in India

Posted on December 3, 2012 by SRRF

As per an Asia-Pacific Report released by Merril Lynch, despite the economic slowdown there has been steady increase in High Net Worth Individuals in Asia-Pacific markets.  In India the numbers have risen almost by 21%.

A High Net Worth has been defined as one whose investible assets (excluding primary residence, collectables, consumer durables, etc) of more than $ 1 Million. Most of these individuals have been investing in equities, luxury items, etc. with very little in philanthropy.

Perhaps this is the challenge for us in the Development sector to tap not only such HNIs but also several other high income individuals who may not have such large wealth, but could still contribute regularly to the philanthropic causes. As Bain report 2012, which conducted a survey of 400 HNIs, it indicated that most young (under 30) individuals would like to give back to the society and often are not aware of how to go about the same. Thus the ground is fertile to tap such young persons, challenge is with the Sector how it manages the same.

Posted in General | Comments Off on More than 20% increment in High Networth Individuals in India

Bureaucracy becoming more representative

Posted on November 30, 2012 by SRRF

As per a govt publication, representation of SCs/STs has gone up remarkably in various levels of civil service measured over a period of 43 years.

SCs

Group A

Group B

Group C

Group D
1st Jan 1965

1.64%

2.82%

8.88%

17.75%
1st Jan 2008

12.50%

14.90%

15.70%

19.60%
STs

Group A

Group B

Group C

Group D
1st Jan 1965

0.27%

0.34%

1.14%

3.39%
1st Jan 2008

4.90%

5.70%

7.00%

6.90%

As can be seen there appears to be a significant increment of representation of SCs as well as STs compared to 1964 levels. The increase is most significant in the higher level of civil service, but even in there has been increase, though in percentage terms it understandably it is lower. In case of STs the reservation has also made significant progress. Thus the Govt can claim that reservation policy is having impact of making the bureaucracy more representative.

The publication does not measure impact of OBCs, for whom reservation were introduced in 1993.

–          Based on a report in Indian Express

 
Posted in Social Issues | 1 Comment

Decline in Infant Mortality Rate

Posted on November 28, 2012 by SRRF

There has been a continuing declining trend in IMR since 2009. As per the latest data released by the Govt. IMR has declined by further three point to 44 per thousand in 2011 compared to 47 per 1000 in 2010. There was a reduction in IMR during 2010 also, from 50 to 47.

According to the ministry, the latest bulletin of the Sample Registration System (SRS) released by the Registrar General of India shows that the IMR for rural areas has dropped by three points from 51 to 48 deaths per 1,000 live births while the urban rate now stands at 29 from the previous 31.

As per state-wise data available for 2010, six states with highest IMR are:

Madhya Pradesh

62
UP

61
Assam

58
Meghalaya

55
Chattisgarh

51
Bihar

48

According to the estimates available with health and family welfare ministry, 17 lakh children under 5 die annually, out of which 13 lakhs are infants. Major reason for the deaths continue to be malnutrition. Other reasons being diarrhoea, pneumonia and measles.

Posted in Child Rights | Comments Off on Decline in Infant Mortality Rate

Large number of NGOs not filing FCRA Annual Return

Posted on November 28, 2012 by SRRF

Large number of NGOs are not filing Annual Return as per data released by FCRA Department. 18507 (FY 2009-10 : 16855) FCRA registeredNPOs have not filed their annual return for the financial year 2010-2011. Highest number of NPOs belong to Andhra Pradesh (2661) followed by Tamil Nadu (2317). State-wise list of NPOs given below:

S.No.

Name of the State UT

Number of NGOs who have not filed FCRA Annual Returns

2009-10

2010-11

1

 Andhra Pradesh

2464

2661

2

 Tamil Nadu

2132

2317

3

 Maharashtra

1691

1771

4

 Uttar Pradesh

1432

1743

5

 West BengaI

1299

1382

6

 Karnataka

1240

1337

7

 Kerala

1076

1135

8

 Orissa

951

1056

9

 Bihar

801

950

10

 Delhi

768

828

11

 Gujarat

659

678

12

 Manipur

475

502

13

 Madhya Pradesh

361

388

14

 Rajasthan

325

346

15

 Jharkhand

166

217

16

 Assam

157

187

17

 Haryana

114

128

18

 Uttarakhand

76

115

19

 Nagaland

108

107

20

 Punjab

94

103

21

 Himachal Pradesh

76

94

22

 Chhattisgarh

64

77

23

 Goa

66

75

24

 Jammu & Kashmir

65

63

25

 Meghalaya

53

60

26

 Arunachal Pradesh

40

45

27

 Pondicherry

23

37

28

 Mizoram

18

27

29

 Chandigarh

23

26

30

 Tripura

17

26

31

 Sikkim

12

13

32

 Andaman & Nicobar Islands

7

8

33

 Dadra & Nagar Haveli

1

4

34

 Daman and Diu

1

1

 

 Total

16855

18507
Posted in FCRA, TAX, LEGAL | 3 Comments

ISSUES RELATED TO TDS REFUND

Posted on November 26, 2012 by SRRF

Dear Sir/Madam

Due to non-availibility of PAN in the records of the bank, the bank made TDS @ 20%. In Form16A, PAN of deductee says ‘PANNOTAVAILABLE’ stating the Q-TDS Return has been filed without giving the credit to the PAN holder. Since the deductee already has a PAN, kindly let me know the procedure for claiming the TDS refund through filing of Return as the credit won’t be indicated in Form 26AS.

Regards
Anutam

Posted in FCRA, TAX, LEGAL | 3 Comments

Restrictions on Political Activities for NGOs

Posted on November 24, 2012 by SRRF

Dear Members,

Under which section of the IT Act, Indian Trust Act and FCRA 2010, a registered Public charitable Trust is prohibited to influence/fund the political activity ?

Looking forward to receiving your opinion.

Regards,

Shekar

Posted in FCRA, TAX, LEGAL | Comments Off on Restrictions on Political Activities for NGOs

Is FCRA required for foreign individual Donors?

Posted on November 22, 2012 by SRRF

Hi,

We are a very small org working using sports to combat gutkha addiction among slum youth.

A lot of school and college mates settled out of India would like to donate sums like U.S. $ 100 or U.K. L 100.

Is FCRA neccessary for amounts as low as this too ?

Jamshed Chinoy
Saamarthya Foundation

Posted in FCRA, TAX, LEGAL | 4 Comments

Filing of FCRA (FC-6) Retrun

Posted on November 20, 2012 by SRRF

Dear Sir/Madam

Kindly let us know if FC-6 pertaining to FY 2011-12 is to be submitted manually & online both or only manual filing is sufficient.

Regards
Anutam

Posted in FCRA, TAX, LEGAL | 9 Comments