Update – FCRA department has issued show cause notice

Recently, FCRA has issued show cause notice to 5992 NGOs asking for reasons why their FCRA registration may not cancel.

Earlier in this May, FCRA has issued list of organizations, who have not filled FC returns online for previous year or years. And give them opportunities to update the same as early as possible. Also after that, 5992 organizations have not updated their FC returns and thus final show cause notice issued to them.

Download Notice from here.

Download List of 5992 NGOs from here.

It is also mentioned that, these organization have to give their reply in email to fcrarenewal-mha@gov.in within 15 days.

 

 

Late Filling of old FCRA Return

Have you not filled your organization’s FCRA return or you have filled it in paper format since it is compulsory to file annual return online.

You can file late Return of FCRA by paying penalties.

Penalty for Late filling of FCRA return

As per notification S.O 2133(E) dated 16/06/2016, penalty for late filling of fcra return is as under in the simple manner. (For original notification click here)

Up to 3 from 31/12

2% of FC Amount Received or Rs. 10,000 whichever is less

3 Months to 6 Months from 31/12

3% of FC Amount Received or Rs. 50,000 whichever is less

6 Months to 12 Months from 31/12

4% of FC Amount Received or Rs. 2,00,000 whichever is less

12 Months to 24 Months from 31/12

5% of FC Amount Received or Rs. 5,00,000 whichever is less

24 Months to 36 Months from 31/12

10% of FC Amount Received or Rs. 10,00,000 whichever is less

Procedure for Filling Late FCRA Return

For late filling of FCRA return, you need to write an email to dirfcra-mha@gov.in from registered address of organization. You will most probably get the link to file late return of fcra and need to pay the above penalty.

Second Chance for FCRA Renewal, if you didn’t get.

Many of the organizations have already received Renewal from FCRA. However, some of the organizations have not apply for renewal or not applied in online format or not paid online fees, may not received FCRA Renewal.

Last date for filling FCRA renewal was 30.06.2016 by online. If your organization fail to do so, your FCRA registration certificate is deemed to have ceased w.e.f. 01.11.2016.

Yesterday, FCRA department has issued a list of total 11319 organizations whose registration certificate is deemed to have ceased w.e.f. 01.11.2016.

Check the list here.

Next Course of Action

These organizations have to apply for renewal –

  1. Login to your account in FCRA website
  2. File Complete FC3 form online
  3. Upload the required documents like Trust Deed and Registration Certificate
  4. Upload a Letter stating reason for not filling renewal earlier
  5. Pay fees online.

No renewal if not filled Annual Returns

It is also mentioned in the notice that renewal shall not be granted if earlier annual returns have not been filled by the organization.

Last date

Last date to file such renewal is 28.02.2017

How to file FC3 Renewal form online ?

Check out this video.

 

Demonetization and NGO – Dos and Don’ts

We know the current scenario of demonetization of old currency notes of Rs. 1000 and Rs. 500. As every day new news coming in, it is difficult for us to decided what should be the correct step to deposit old notes.

Earlier, Trust and NGOs were already under the radar of the Government before demonetization,  now we can predict that more strict control coming in near future.

Let us discuss today about dos and don’ts by NGOs in a Question Answer Round.

Q – Can old notes be deposited in NGOs Bank Account and what is the time limit?

A – Yes, old notes can be deposited in NGOs Bank Account till December 30.

Q – How much cash can be deposited?

A – As such no limits, but not more than the CASH ON HAND AS ON 8th NOV.

Q – Can we take cash donation in Old notes now?

A – No. After 8th Nov, old Rs. 500 and Rs. 1000 notes are not valid tender.

Q – Can we take donation in cash in back dated and thus create more cash balance as on 8th Nov ?

A – I suggest NO. Just two days back, not confirmed but, IT (Exemption) of Mangalore has issued notices to NGOs to submit authorized copy of cash books as on 8th Nov with denomination.

Q – Can we deposit cash in FC in old notes ?

A – Yes you can deposit old notes in FC account but not more than cash balance of FC books as on 8th Nov. I suggest if the cash balance is not much amount  get it exchange with new notes.

Q – What about staff advance already given before 8th Nov in old notes?

A – Do not take bake the advance and deposit in the Bank. It is advisable to ask staff members to exchange it.

Q – What about Donation boxes lying outside the offices like at airports, malls etc..?

A – Immediately get all the donation boxes back and record its cash on books as donation and keep photographs before and after opening of boxes or record a video at the time of opening of boxes with the current date newspaper. So that later, NGO can prove that the donation boxes open after 8th Nov and there were old notes which were deposited in the bank.

Q – What is advisable regarding taking donations between 8th Nov to 30th Dec..?

A – As a genuine NGO, one should not accept any donation in CASH during this period. If you received donation in new notes, kindly take the proof of the donors and keep the bank deposit slips.

All the above answers are purely my opinion. If you have any further questions, kindly ask in the comment section below this blog.

 

Income Tax Return of NGO

All you need to know about Income Tax Return of NGO – ITR7

As last date of filling Income Tax Return of NGO is approaching, it is necessary that we should keep in mind some of the points related to Income Tax Return of NGO.

Form No

Form No is ITR 7

Download Link

You can download ITR7 for Income Tax Return of NGO from here.

Last Date

Last date for filling return is 30th September

Hard Copy or Online

It is now mandatory to file ITR7 only online. NGO need to login to income tax website and fill the form to upload.

Signature

This online form is to be digitally signed by the Authorized person. So mostly DSC of managing trustee can work.

Details – Income

In the Income Tax Return of NGO, it is necessary to give information regarding the details of Income of NGO – mostly they are –

  • Voluntary Contribution – Corpus
  • Voluntary Contribution – General
  • Grants – (FC grant separately)
  • Government Grants
  • Other Income like Bank Interest, FC Interest and any other income
  • Business Income if any should shown separately

Details – Application of Funds

Also need to fill details regarding how the above income is used – application of funds

  • Expenditure shown in the Income and Expenditure Accounts
  • Amount set apart or carried forward
  • Depreciation etc..

Details – Others

Many other information are needed to be filled in the Income Tax Return of NGO like

  • All the Registration details, 12A, 80G, 35AC, FC Details
  • PAN and Address of all the Trustees
  • TDS information
  • Investments of NGOs etc..

Conclusion

Mostly, Income Tax Return of NGO filled by their Auditor or CA. However it is necessary for NGO accountant and top management to at least go through all the details of draft ITR7 and only ask CA to upload finally.

Upload Return of Assets and Liabilities to FCRA under Lokpal

All of you aware about latest compliance requirement by the Individual of the association to under Lokpal & Lokayukt Act.

Public Servant of the applicable organization has to file return of his assets and liabilities with FCRA department. in prescribed forms. (Read full blog here).

Today, FCRA department has provided link to upload the forms.

  1. Download forms, take a print, and fill with blue or black ball pen.
  2. Theses forms to be scanned and create PDF file. (How to scan?)
  3. Upload this PDF in the below shown link.
  4. PDF size should not increase 10 mb.

 

Image 1

Lokpal Declaration Date will be extended

In a recent development, on Thursday, one of the Rajya Sabha Member, Ms Anu Aga,  raised the issue regarding declaration of Assets by the officers and trustees of NGOs.

“One temporary solution could be to extend the date for a few months from July 31. However, this is a short term respite and we will have to find a permanent solution by amending the act,” she suggested. ”

In response, I&B Minister M Venkaiah Naidu said: “We shall keep in mind the sentiments of the House in this regard and see that a broad consensus is evolved on the issue and then move forward. The date will be extended but it depends on the responses of all the political parties.”

Read full news article here.

 

NGOs under Lokpal

Another compliance requirement to be fulfilled by NGO and NPOs. This time, its Lokpal and Lokayukt Act (LLA, 2013). Yes NGOs are under the scanner of Lokpal now. Recently notified by the Ministry of Personnel, Public Grievances and Pensions nos 1541, 1542 and 1543 (dated 20.06.2016) specify the procedure and clarity regarding Lokpal.

(See Full Notification here)

Let us discuss this in FAQs.

Which NGOs/NPOs are covered?

As per notification three types of trust / society and associations (NGOs) are covered.

  1. NGOs owned by government
  2. NGOs, which has received grant or Rs. 1 crore and above from Government
  3. NGOs, which has received FC funds of Rs. 10 lacs and above

What type of compliance?

“Public Servant” of above NGOs has to submit return declaring the Assets and Liabilities, as per sec44 of LLA, 2013.

Who is “Public Servant”?

Definition of “Public Servant” is not clearly given in the LLA, 2013. However all the Board Members are certainly covered.

Who is liable?

“Public Servant” in individual capacity is liable. Thus NGO per se is not liable, but all the trustees / board members are liable to comply with the provisions of LLA, 2013.

How to declare Assets and Liabilities?

There are 4 forms specify –

  1. Form I: Name of spouse, dependent children, public position held by them,
  2. Form II: Details of movable property such as cash, bank balances, investments, provident fund, loans and advances, vehicles, jewellery, gold, etc.
  3. Form III: Details of immovable property such as land, house, shops etc.
  4. Form IV: Details of loans taken, along with details

Download forms in excel from below link –

.

Whose Assets and Liabilities?

  1. Self
  2. Spouse
  3. Dependent Children

Whom to Submit?

 

  • NGOs owned by government – Respective Department
  • NGOs, which has received grant or Rs. 1 crore and above from Government – Department from which highest grant received 
  • NGOs, which has received FC funds of Rs. 10 lacs and above – FCRA Department, Home Ministry.

 

How to send declaration?

For now, only by registered post.

For How many years and what is the last date?

As per act, till the grant is not utilized, every year such return should be submitted. So, currently, return for 2015-16 is to be submitted before 31.07.2016.

There after for every year, last date is 31st July.

Any person become public servant in between the year, has to file return within 30 days form the date he is appointed.

Penalty?

If declaration is not submitted or the assets are not declared, it is presumed that all the assets are acquired through corrupt means and also it will be treated as offense and Lokpal can initiate the inquiry against the “Public Servant”.

Video Tutorial

Any other question?

Kindly put your comments and question in the below comment section.

 

 

Check – NGO has filled Quarterly Return or not

As all of you aware that now, every NGO having FCRA registration needs to either file quarterly return online at the FCRA website or upload it to their own website. Check out our blog on this.

FCRA department has just made it public the list of NGOs who have filled quarterly return for the period Oct-Dec and Jan-March for the year 2015-16.

Follow these steps to check whether your NGO has filled Quarterly Return or not.

Step 1 – visit https://fcraonline.nic.in

Step 2 – Click on “Information Bank” in the Menu

Step 3 – Click on last tab as mentioned below in screenshot

Image 2

Step 4 – Select the year and Quarter and a list will be displayed as mentioned below.

Image 3

 

So, on this list you can check which NGO has filled return. It is advisable use Find Button by pressing “Ctrl F”. Also search NGO by registration instead of name to get accurate result.

 

FCRA Registration Renewed to All

Good News :

All the NGOs FCRA, which expired on or before 30.09.2016 are extended to 31.10.2016. See the notification here.

What does it means :

It means all the organization’s FCRA registration is expired on 31.10.2016. As per FCRA 2010, registration of organization was going to be expired on 30.04.2016. But now it is automatically extended to 31.10.2016 by way of above notification.

Also, those organization, who has not apply for renewal, immediately apply in Form FC3.