Government gives 30-days to erring NGOs to file I-T returns
The government has given all erring NGOs 30 days time to file their annual returns for the last five years so that they can resume operations. The Home Ministry had suspended the registration of several NGOs which had failed to disclose their annual returns from 2010-2015. They have been given time until 14 June 2017 to file the necessary documents.
What is the Foreign Contributions Regulation Act?
The FCRA seeks to regulate foreign funding received by individuals and organizations in India. The rules require any such individuals/organizations to declare the quantum and the channels of utilization of these funds.
A brief background to the issue
In 2014, the Intelligence Bureau wrote an adverse report alleging that NGOs were flouting FCRA norms, affecting India's economic stability. The government then began cracking down on thousands of NGOs for various FCRA violations. More recently, the government ordered 11,000 NGOs to file for renewal of licenses. However, only 3500 filed for renewal and disclosed their annual returns. The remaining 7500 licenses were cancelled.
Govt grants exemption from compounding fee
The Home Ministry added that they will not charge the NGOs for compounding fees that is usually levied for late filing of returns. They added that this was a one-time concession that was being given until 14 June.
