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FC Grant Now exempt from Charity Contribution – Gujarat

Gujarat Government published in the Official Gazette on May 20, 2015 (Download it from here) regarding change in Gujarat Public Trust Act, 1950 and these rules may be called the “Bombay Public Trust (Gujarat) (Amendments) Rules, 2015. One of the major welcome change is to consider Foreign Grant as deduction for calculation of Charity Contribution.

Earlier, only local contribution/grants and government grants were allowed to deduct from amount liable to contribution. No such provision related to Foreign Grants deduction was there, because of old act since 1950 and never amended thereafter.

Change in Balance Sheet and Income Expenditure format –

Schedule VIII related to Balance Sheet and major change is to show balance in FCRA Bank account separately. Have a look –

charitybS

Schedule IX is related to Income and Expenditure Account  and major change is to show Grants in Foreign Money  separately. Have a look –

charityIE

Change in Schedule IX-C – Statement showing amount Liable to Contribution –

Major relief comes here, where it is notified in this revised schedule of IX-C, that Grant and Donation under FCRA is not chargeable to contribution under section 58 and rule 32. Lets have a look –

charity9C

From when it is applicable –

As no date specified in the official gazette, we interpret that any Statements prepared after May 20, 2015 (date of notification) must be prepared as per this new format.

NGO Regulatory Authority in india

In India, Non Government Organization or Non Profit Organization can be registered under any legal entity. Mainly following entities are prevails in India –

  • Proprietary Concern
  • Partnership Firm
  • HUF
  • Company
  • Association of Persons, which includes – Trust, Society, Union, Institute etc…

NGO Regulatory Authority in India

For NGO or NPO, mainly three separate entity status possible, either registered as company, trust or society. These three have their own benefit and disadvantages. Different legal status regulated by different legal acts and laws in India. Lets look at the various NGO regulatory authority in India :

 Legal Status Act Aply Remarks
Company NGO can be registered as company under Section 8 of The Companies Act, 2013 Earlier it was Section 25 of The Companies Act, 1956
Trust NGO can be registered as trust under Indian Trust Act, 1882 However, every state has its own Trust Act. Like in Maharshtra and Gujarat, The Bombay Public Trust Act, 1950
Society NGO can be registered as Society under The Societies Registration  Act, 1860 However, every state has its own Act. Like in Gujarat, The Gujarat Co-operative Societies Act, 1962

Summary

Once NGO is registered under any of the above statute, there are number of other registration has to be taken depending on the need and requirements, e.g Sec 12A exemption, 80G certificate, FCRA registration, 35AC exemption registration and so forth.

Hope this will help you in your NGO, if you have any question, you can ask here or chat with us. Also your comments are welcome on the above subjects.