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FCRA Renewal Status

How do we know, what is the status of application of FCRA renewal ? This is the question, every organization is asking now a days. Yes, we all are waiting regarding any communication from MHA, FCRA department regarding FCRA renewal status.

What is current scenario?

As per our knowledge, no organization,  throughout India has received any Renewal or Query Letter from MHA, FCRA department.

How to check FCRA Renewal Status?

No such mechanism prescribed or available right now online to check where your application is lying. Keep visiting our blog for any new news.

Time limit for FCRA Renewal?

As per section 16 (3) of FCR Act, 2010, renewal certificate should be issued withing 90 days from the date of the application received.

section 16(3)

“The Central Government shall renew the certificate, ordinarily within ninety days from the date of receipt of application for renewal of certificate . . . .

Provided that in case the Central Government does not renew the certificate within the said period of ninety days, it shall communicate the reason thereof to the applicant”

What to do now?

Organization can email to the FCRA department to ds-fcra@nic.dot.in email address (this email address mention on the fcraonline.nic.in website) with the details on which date you apply for renewal and DD no etc..

If you get any communication from FCRA department regarding renewal or any queries, kindly post in the comment so it will be useful to other readers of this blog. Thanks.

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Immediately update your NGO details on FCRA portal

Making all FCRA services online

FCRA department is in the process of making all the procedures online. (read this blog), previously asked NGOs to have digital signatures of Chief Functionary. Yesterday,  FCRA department has issued notification dated July 28, 2015 (download it from here) stating that in order to making all FCRA services online, instructed NGOs to go on FCRA portal and update their details.

Which Procedures becoming online?

  • Application for FCRA registration
  • Application for Prior Permission
  • Application for renewal of FCRA
  • Change Application for Name of Association
  • Change Application for Address of Association
  • Change Application for Bank Account of Association
  • Filling Annual Return

Attachments to any applications

All the documents and attachments for the above procedures will  also to be uploaded in scan copies. No hard copies of such documents accepted by FCRA department.

Payment of Fees

After everything will be online, payment of fees for above procedures will also be accepted only through online payments.

When ?

As mentioned in the above notification, after 15 to 20 days all the procedure will be online.

Immediate action to be taken by NGO – Very Important

FCRA department instructed NGOs to update their information –

1) Go to this link – http://fcraonline.nic.in/dat_col_frame.aspx

2) Enter your FCRA Registration No. , State and District (see below image)

Update_FCRA

3) Update all the information and save data (see image below)

Update_FCRA_details

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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.

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Do you have any grievances related to FCRA ?

Do you have any grievances related to FCRA ? . The answer to this question is YES, then you can now meet Director (FCRA) in Foreigners Division of Ministry of Home Affairs. FCRA department has issued a circular recently stating monthly meeting by Director (FCRA) on 5th of every month for redress of organization’s grievances related to Registration / Prior Permission etc.. (Download Circular from here)

How to meet ?

Organization having any grievances related to FCRA have to take prior appointment.

How to take appointment ?

Email your grievances to ravinder.prasad56@nic.in

Details to be email

Following details to be mentioned in the email stating for appointment :

  1. Name and Address of the association
  2. Name of the person desirous to attend the meeting
  3. Application Number
  4. Issue of Discussion

When and where ?

Room No 104/1, 1st Floor, NDCC-II Building, Ministry of Home Affairs, Jai Sing Road, New Delhi – 110001 on 5th of every month (or on the following working day if 5th happens to be holiday) between 10 a.m. to 1 p.m. on appointment basis.

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Amendments in FCRA Rule 2015 (draft)

After a circular regarding DSC of chief functionary, FCRA Department has issued a circular on 17th June 2015, (Download from here)asking for suggestion on amendments to Foreign Contribution Regulation Rules, 2011 by Foreign Contribution Regulation Rules (2015).

THIS IS A DRAFT AMENDMENTS and suggestions or comments asked from public and other stakeholders on or before 1st July, 2015.

We are in the process of analyzing and studying all the changes in the amendments and it impacts. Meanwhile let us see important changes which are suggested in the amendments of FC Rules :

Website will become mandatory

After this amendments, every NGOs with FC registration will have to build a website. No, it is not declared directly as mandatory. But changes made to Rule 13(1) stating that every registered organization has to publish audited Income Expenditure, Receipt Payments and Balance Sheet of Foreign contribution to its website before 31st December of every year. Such website has to be declared as official website and is to be informed to FCRA department.

Have to publish Foreign Receipt within 7 days

Yes, you have to publish to your official website, every foreign receipts within seven days of receipts. Refer rule 13(B) of such draft amendments.

Bank will have to report in 48 hours

Bank will have to report of FCRA department within 48 hours of any transactions in respect of receipt and utilization of any foreign contribution. Refer rule 16 (2) of such draft amendments.

Online Procedures

We have already write a blog stating how FCRA department is eager to implement all the online procedure. Here in this amendments it is clearly mention that now onwards all the forms will be filled online through DSC and also you can make payment through online payment gateway.

Change in Forms

All the form numbers will be changed e.g. Annual Return Form FC-6 now become FC-4. Not only form numbers, but details and information given in the forms will also changed. We will soon post a blog showing what changes will be made in Forms.

You can give Suggestions

FCRA department has asked for suggestions on the above mentioned amendments from public. You can give your suggestions by email to Mr. A.K. Dhyani, Under Secretary to the Government of India on ak.dhyani@nic.in.

Alternatively you can give your suggestion in the comment box below. We will compile all the suggestions and email to the authority.

Note – This amendments are draft and not final. This will be implemented only after FCRA Rule, 2015 published in the Official Gazzette.

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How to get 12A certificate for NGO

12A certificate for NGO

UPDATE – Procedure has been now online. Refer updated post http://www.kcjmngo.com/how-to-get-12a-certificate-for-ngo/

 

As we aware that after NGO registered, there are many statutory compliance to be fulfilled. One of them is to get exemption certificate from Income Tax. As per Income Tax Act in India, NGOs are exempted from tax under section 12A.

Why Sec 12A registration required?

NGO is registered for non-profit activities. However, there may be income of NGOs. If NGO does not have registration certificate under section 12A of Income Tax Act, It has to pay tax as per normal rates. So to get income tax exemption, it is necessary to have 12A certificate.

Procedure to apply for 12A Certificate

NGO has to apply to the Commissioner of Income Tax (Exemption Department) in Form No 10A. See below video for detail procedure.

Details to be fill in Form 10A

1. Name and Address of the Trust

2. Name, Address, Occupation of the founders / trustees

3. Date of Registration

Documents to be attached

1. Certified Copy of Registration Document

2. Certified Copy of PAN

3. Certified copy of Memorandum of Trust

Conclusion

It is a very simple process to file this form. After filling this form, Commissioner of Income Tax, if find that all the conditions laid down in Sec12AA are fulfilled, issue 12A certificate for exemption from Income Tax.

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Yoga of NGO – Budget 2015

Amendments in Budget 2015 related to NGOs

Major Two changes are proposed to made in the definition of “Charitable Purpose”. One to include YOGA with other activities like Medical and Education and emphasis the benefits of a keto ultra diet in health activities. Another change is to aim at curbing irregularity of  filling of Income Tax Return of NGO by making it mandatory to accumulate part of the income. Let us discuss one by one in detail.

Yoga is now included in the definition of Charitable Activity

Honorable FM has proposed to include “YOGA” as sixth item in the definition of Charitable Activity after “Education” activity. Let us understand this provision, this means any organization having main object of “YOGA” can get full exemption of its income, even though income earned from Business Activity related or not with YOGA.

Several research studies in the last two decades unravel the benefits of yoga in terms of improved mood states, symptom reduction, stress reduction and improved quality of life apart from improving host factors that are known to affect survival in cancer patients such as for Ovarian Cancer Symptoms Inspire has reviewed. However, several metaanalysis and reviews show equivocal benefits for yoga. In this review, we will study the Yoga interventions in cancer patients with respect to expectations, benefits and risks and analyse the principles behind tailoring yoga interventions in cancer patients.

Example :- A Gym Trainer wants to start a Gym. If he, instead of registering as Firm or Company, registered a Trust and get certificate of exemption u/s. 12A, having main object of Teaching Yoga using equipment as yoga balls that are sold online, then  all the Income is exempted, weather it is from activity of Teaching yoga or normal exercise and gym activities including the best keto ultra diet plan.

Shape-Up-Trust

Business Activity of Trust

It is proposed by Honorable FM that Charitable Organization engaged in Advancement of any other object of General Public Utility can have incidental business activity up to the limit of 20% of Gross Receipts of the Organization. Earlier it was Rs. 25 Lacs for all the organization. This is a good effort to make this provision rationalize.

Accumulation of Income

Under Section 11, Organization can accumulate their part of Income for utilization in future years. To exercise this option, Organization has to file Form 1o to Assessing Officer along with Income Tax Return with resolution stating such accumulation of income. However due to lack of clarification, Time limit was not fixed for filling such Form 10 and return. Now Honorable FM has proposed that this type of Accumulation of Income is permitted only if Income Tax Return of NGO is filled with in time limit i.e. 30 September.

Few Other Changes

Under Section 35, words “Principal Chief Commissioner or Commissioner” inserted to whom feasibility report is to be submitted. Under section 80G, donation to “Swachh Bharat Kosh” and “Clean Ganaga Fund” are added.

Conclusion

Inserting Yoga activities in the charitable definition may reduce unnecessary legal litigation regarding that but on the other had Government has to create such mechanism so that business activity behind the mask of Yoga can be traced and properly taxed.

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LAST DATE FOR FILLING FC-6

Those NGO who is registered under FCRA act has to file annual return in Form FC-6 latest before 31/12/2014 for the year 2011-12.

Before submitting  FC-6 online return, one must check carefully, read our this blog on what should be check before filling FC-6 return

Annual Return Under FCRA Act

Last Date = 31st December 2014

Form = FC-6

Year = Financial Year 2013-14

Filling = ONLINE through Home Ministry Website

For More Details – See our calendar here

 

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How to do renewal of FCRA registration of NGOs?

As we all aware about new provisions in Foreign Contribution Act, 2010, all NGOs have to renew its registration in every 5 years. Let us check in detail what is the Renewal Procedure and when and how to file renewal form.

When  FCRA registration expires ?

Existing organization having registration before 1st May 2011, their registration will be expire on 30/04/2016. Organization registered after 1st May 2011, 5 years from the date of the registration.

When  to apply for Renewal of FCRA registration ?

If you have multi-year on going projects – 12 months before expiry date as mentioned above. For existing organization, that cut off date is 30/04/2015.

If you do not have multi-year on going projects – 6 months before expiry date as mentioned above. For existing organization, that cut off date is 30/10/2015.

How to  to apply for Renewal of FCRA registration ?

Application has to be made in Form FC-5. You can download this form in word format from here. Currently FC-5 form is not available to file online like FC-6, so we presume that we have to file this form offline in hard copy.

Form FC5

Form FC5

How Much fees for Renewal of FCRA registration ?

Along with Form FC-5 , organization has to pay Rs. 500 by way of DD or banker’s cheque in the name of “Pay and Account Office, Ministry of Home Affairs” payable at New Delhi.

Time Limit for Renewal of FCRA registration

FCRA department has to renew the certificate, ordinarily within 90 days from the Form FC5 received. If renewal is not granted within time line, it shall communicate reasons for rejection to the organizations.

Consequences for Delay or Not apply for Renewal

In case an organization fails to apply with in cut off dates mentioned above or not apply at all, its registration of FCRA becomes invalid.

Video

Check out this video

 

Conclusion

It is advisable for organization to start preparing for Form FC5. Download Form FC5 in word format from here. In next blog, we will discuss in detail about what information is to be filled in Form FC5.

# Disclaimer
This video is prepared in the view to facilitate users to fill FC 5 form for FCRA renewal. Kindly refer FCR Act and Rules for accurate information. While we have made every attempt to ensure that the information contained in this site has been obtained from reliable sources, KCJMNGO is not responsible for any errors or omissions, or for the results obtained from the use of this information.
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