The enabling laws for the NGOs such as FCRA and Income Tax are quite complex and have become stricter in the recent times. Some of the penal provisions mentioned therein are draconian in nature and have the potential implications for cancellation of registrations. Therefore, compliance to these regulations has become quite important to survive in the civil society.
CPA Services, with its expertise and rich experience in the Voluntary Sector, offers support to the voluntary organization in complying with these regulations by a special service in the form of comprehensive Legal Compliance Review. In this service, we aim at a sustainable approach of incorporating systems and processes to ensure compliance of the complex and the dynamic regulatory laws. This service would include an on-site visit from our experienced team members to review the existing systems, processes and compliances from a legal perspective. Subsequently, we would provide recommendations thereon to ensure Capacity Building of the staff regarding enabling laws and consequently, enhancing the compliance environment of the organization.
Availing of Retainership services means having a single window solution to all your legal queries and questions. The complex and dynamic legal environment for the voluntary sector presents several challenges in our day to day operations. Such services would broadly include
In order to develop a cost-effective approach, we offer the above mentioned services in a complete package for a particular period of time (For example, 12 months) and is renewable at mutual consent.
In order to claim exemption from the Income Tax, charitable and religious institutions can seek registration under section 12A of Income Tax Act. After the grant of registration, the organization would be able to enjoy the tax exemption and undertake its activities as per the bye-laws of the organization.
Having said that, the finance Act 2020 has brought radical changes to the existing 12A registrations of such organizations as well. The recent amendment provides that all the existing registrations would have to reapply on or before 31.08.2020. This registration would be valid for only 5 years. After 5 years, this needs to be reapplied 6 months prior to the expiry of such registration for renewal.
CPA services seeks to provide support to such organizations with regard to new application as well as revalidation of existing registration under Income Tax which would include
Section 80G of the Income Tax Act provides that the donors can claim deductions on their tax liability by making donations to specified institutions registered under the said section of the act. In other words, any institution registered under the said section would be able to attract more donations as it provides tax deduction to the donors. Therefore, it is important for an organization to register under 80G in order to attract potential donors.
The Finance Act 2020 has brought radical changes to the existing 80G registrations of such organizations as well. The recent amendment provides that all the existing registrations would have to reapply on or before 31.08.2020. This registration would be valid for only 5 years. After 5 years, this needs to be reapplied 6 months prior to the expiry of such registration.
CPA services provides support to such organizations with regard to new application as well as revalidation of existing registration under Income Tax which would include
In order to avail grants or donations from foreign sources, one must register itself under the Foreign Contribution Regulation Act, 2010. There are basically two forms of registration which are available in order to seek registration under the said Act
Prior Permission: This type of registration is amount-specific and donor-specific. Once such prior permission is granted, one can receive grants from a specific donor upto the amount specified in the application.
Registration: This type of registration is a blanket registration where one can receive donations from any foreign source without any limits. Once FCRA registration is granted, it is valid for a period of 5 years. An application for renewal of FCRA registration can be made 6 months prior to the date of expiry, in order to restore the validity of the registration.
CPA Services provides support to the NPOs in applying for Registration/Prior Permission/ Renewal under the FCRA act which would include:
Every person registered under the FCRA Act needs to submit an Annual Return to the Ministry of Home Affairs (MHA), online before 31st December for its foreign fund receipts for the previous financial year. Also, if such organization has not received any foreign contribution, filing of a Nil return is mandatory. The Returns need to be filed online in the Form FC-4 at the online portal www.fcraonline.nic.in.
The form FC-4 has been amended recently, which now includes details with respect to
All the above mentioned details need to be incorporated in the Annual Returns which has led to its complexity. Any such misleading information submitted is a punishable offence under the Act. CPA Services offers support to organizations in filing their Annual Returns in a technically correct manner to ensure the accuracy of information submitted to the Ministry of Home Affairs. This would include
Further, on quarterly basis all persons / organizations who have been granted registration or prior permission shall have to upload their financial information pertaining to the donor and the detail of grants received. Such information should be uploaded on their website or on the website as may be specified by the Central Government. CPA Services offers support in filing such quarterly returns in a timely manner to ensure compliance to the Act.
In order to register a non-profit organization in India, there are mainly three forms of registration:
The type of registration would depend on various parameters such as Governance, Compliances etc. CPA services provides various services such as: