FOREIGN CONTRIBUTION REGULATION ACT - 1976

1.

OBJECTIVE

To protect the sovereignty of the country. This act was passed to ensure that Indian Parliamentary Institutions, Academic and Voluntary Organizations and individuals working in important areas of National life, function in a manner consistent with the values of Sovereign Democratic Republic.
2. 3.

SCOPE OF THIS ACT

Section 2, foreign contribution means the donation, delivery or transfer made by any foreign source, Of any article, not a gift for personal use, The value of the gift does not exceed one thousand rupees of any currency, whether Indian or foreign It could be a foreign security

4. Regulations:

Absolute prohibition FC subject to prior permission FC subject to intimation FC with conditions and registration
5. Absolute prohibition:

Candidate for election, Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper. Judge, Government servant or employee of any corporation, Member of any legislature,
6. Section 8 makes certain exception:

By way of salary or remuneration International Trade Transactions with foreign Government Gift received by Indian delegation within the rules From relatives under the act. Remittances received in the ordinary course under FEMA Remittances received in the ordinary course under FEMA
7. With prior Permission: Section 5&6 Forms 1 & 1A Organization of a political nature and not political party Assn. having definite cultural, economical, educational, religious and social programs.

8. OBTAINING FCRA REGISTRATION steps Section 6(1)

Submit form FC-8 to ministry of Home Affairs along with the following documents:
A copy of the Trust deed Copies of Memorandum of Association and articles of association and rules regulations of the society FC permission certificate if obtained Details of the activities of the association for the past three years Copies of the audited statements of account for the last 3 years 9. Further Information Identify the name of Bank/branch and account Number through which FC recd. Maintain separate set of accounts and records for FC recd. Use FC6 for receiving articles FC 7 in case of foreign securities FC3 for submission of annual accounts: Need to be prepared without utmost care. Fill up all the (56) heads wherever necessary. 10. Powers vested with the central Government in cases default and violations: Prohibition to receive FC/article/security in writing Powers to inspect the records at the premises Right to seize the records to produce before the court. In case of faulty and false return, power to inspect and seize accounting records. Power to imprison up to 5 years with fine or both.

11. Some important amendments in 1985

Funds received by subsequent recipient were brought under the purview of the act. Definition of political parties was enlarged to include parties in Jammu and Kashmir. Section 15A was inserted to empower the government to audit and inspect books. Section 25A inserted to prohibit receipt of funds for 3 years by organizations who have been convicted for the second time

12. Some Important Changes Proposed The New Bill

1. Objective:

To include to curb the use of FC for anti-national activities.

2. Change in the registration authority/procedure

Decentralization of Registration office in five other state capitals. The authority to vest with State Government. This is to facilitate prospective NGOs. 2. Re-registration under the proposed act even if already registered 3. Registration valid for 5 years only. Renewal after every 5 years. 4. Fees for registration and appeals, administration expenses up 30% of F.C., procedure for asset disposal and Interest earned on FC shall be FC. 3. Prior Permission
1.

Apart from registering under SECTION 11(1) The Central Government may direct some to obtain permission from them and may also specify the area, purposes and source of FC. 4. The registering authority may call for additional information to satisfy:

Is not fictitious or benami; Has undertaken meaningful activity for the benefit of people. Has prepared a meaningful project; Has not indulged in conversion activities] Has not created communal tension; Not guilty of diversion and misuse of funds Not indulged in sedition and violent activities; Not use for personal purposes Not contravened any of the provisions of the act; Certificate cancelled or suspended earlier; Not prohibited earlier.

5. Certain persons involved in printing and broadcasting were also debarred from receiving FC. 6. Provision to appeal against refusal for registration and permission were included. 7. Interest earned on FC to be treated as FC. 8. Any other income derived from FC to be treated as FC 9. 30% of the FC can be utilized for administrative expenses 10. Procedure for the disposal of assets bought from FC 11. Apart from designated Bank for receipt of FC, further accounts can be opened in bank branches for dispersal. 12. Definition of an organization of political nature included with clarity. 13. Cancellation and suspension under certain conditions. If incorrect and false statements are made in the application If there is violations of the provisions of the act. I in the opinion of the Registering Authority, it is necessary in the public interest or Violation of provisions and rules of Only after three years the organizations can reapply for registration. Before cancellation up to 90 days the organizations can be suspended.

11. STANDARD FORMS AND ITS USAGE

FORM NO FC-1 USAGE Application for obtaining prior permission to receive foreign Contribu tion by or on behalf of an organization of political nature not being a political party. To be used for acceptance of foreign contribution by an Association having a definite cultural, economic, educational, Religious or social programme Application to accept foreign hospitality Account of FOREIGN CONTRIBUTION RETURN

FC-1A

FC-2 FC-3

FC-4
FC-5 FC-6

Intimation to the central Government of receipt of foreign Contribution by a candidate for election.
Intimation to the central Government of receipt of scholarship, Stipend or any payment of like nature from a foreign source. Foreign contribution (Articles) account

FC-7
FC-8

Foreign contribution (securities) account

Application for registration for acceptance of FC by an association having a definite cultural, economic, educational, religious or social pro.

Right to Information Act 2005

Objective
Right to freedom of speech and expression People will be able to make informed decisions to demand

accountability and justice from those in governance.

Information generated by using public funds to be owned by the people. People have the right to access information about

governments actions and inactions, polices and decision

making process.

THE RTI Act empowers

Right to Information Act 2005 empowers every citizen to Ask any questions from the Government or seek any information (with exceptions? Yes). Inspect government documents and make copies of them. Inspect Government works and if need be take samples of materials of Government work.

Who is covered under RTI?

The RTI Act covers the whole of India except the State of Jammu and Kashmir. All bodies, which are constituted under the Constitution or under any law or under any Government notification or all bodies, including NGOs, which are owned, controlled or substantially financed by the Government.

Who will give information?

Every govt. department will have public information offices (PIO) Application can be submitted to PIO or APIO.

Any fee?
Rs. 10/- for central govt. (CG) department. Different state have different rates Rs. 2/- per page of information by CG First hour of inspection no fee. Fubsequently Rs 5/- for every hour-pay the fees by cash / DD / MO / IDO

Is there an application form for seeking information?

For Central Government Departments, there is no form available. You should apply on a plain sheet of paper. However, stats may differ on this. Many states and some ministries and departments have prescribed formats.

Can I submit my application only with the PIO?

No, in case the PIO is not available you can submit your application with the Assistant PIO (APIO) or any other officer designated to accept the RTI applications.

Where can I locate the concerned PIO?

A list of PIOs/APIOs and Appellate Authorities for all Central and State departments/Ministries is available online at www.rti.gov.in

Is there a time limit to receiving information?

Yes, there is a time limit. You must receive information within 30 days.
In case you have filed your application with Assistant PIO then information has to be made available within 35 days. Information has to be made available within in 48 hours. In case of matters pertaining to life and liberty of an individual. Do I have to give reasons why I want particular information? You are not required to give any reasons. However, you are required to give your name, address, and Phone No.). Sec 6(2) clearly says that no information other than contact details of the applicant shall be asked. Can the PIO refuse to accept my RTI application? No. The PIO cannot refuse to accept your application for information under any circumstances.

V. Can the PIO refuse to give one information?

Refuse to give or 11 subjects listed in section 8 Information received from foreign govt. which are confidential in nature, pre judicial to security, strategic or Economic interest of the country.

18 agencies given in second schedule does not apply.

Can access be denied for file noting File noting are an integral part of the government file access cannot be denied.

APPEALS
What can I do if I do not receive information? If you do not receive information or are dissatisfied with the information received, you can file an appeal with the First Appellate Authority under section 19 (1) of the right to information Act. Who is a First Appellate Authority? Every public authority must designate a First Appellate Authority.

Do I have to pay a fee for the first appeal?

No. You are not required to pay any fee for the first appeal. However, some state governments have prescribed a fee. In how many days can I file my first appeal? You can file your first appeal within 30 days of receipt of information or within 60 days of filing RTI application (if no information received).

What if I do not receive the information after the first appeal process?
If you do not receive information even after the first appeal then you

can take the matter forward to the second appeal stage.

What is a second appeal?

A second appeal is the last option under the RTI Act to get the
information requested. You can file second appeal with the

Information Commission.

ACTS ACADEMY OF HIGHER EDUCATION INCOME TAX FOR NGOS AND CHARITABLE ORGANISATIONS
1. APPLICABILITY:
IT ACT Section 4 - All organizations including charitable.ogns income attract tax. Income includes donations and voluntary contributions. 2. EXEMPTIONS: I. Absolute U/S 10(23C) of Income Tax Act A. EDUCATIONAL INSTITUTIONS Hospitals
Solely for Educational/ charity purposes and not for profit and are wholly or substantially financed by Government And where the annual income does not exceed 100 lacs

It is advised to send a NIL return

II. Approved by Prescribed authority OR notified by Central Government

Organizations established for charitable purposes Wholly for religious purposes

Educational purposes without profit

Hospitals for charitable purposes not for profit Conditions for approval: Government can call for documents to verify the genuineness. The income should be applied for the stated object. Funds of the organizations should be deposited as per section 11(5). Any business activity carried on should be incidental to the main objective. Separate set of books shall be maintained for the business. Section 139(4c), file return annually. Surplus in a year can be carried for another five years

3. CONDITIONS FOR EXCLUSIONS

REGISTRATION U/S.12AA, the following needs to be done: Form 10A to be submitted to the commissioner of income tax with in one year of formation. If there is a delay, sufficient reasons need to be submitted in writing. After satisfying about the objectives, the commissioner will issue the certificate within six months. Any income derived before registration attract income tax. No part of the income should be spent for Founder, trustee or Manager except for services rendered. (Reasonable amount) Charitable organization should not hold shares in a company. Investments need to be done according to section 11(5).

If incase a charitable or religious organization, does business, which is not incidental to the objects of the organization, then they have to pay taxes.
U/s.139, return of income needs to filed every year, failure will attract Rs.100 per day u/s.272A U/s.139A PAN to be obtained in form 49A.

ACTS ACADEMY OF HIGHER EDUCATION TAX DEDUCTION AT SOURCE

1. Payments requiring deduction of tax at source:
Payment of salary (sec.192)

Payment of interest other than interest on securities (sec194A)

Payment to contractors and sub-contractors (194c) Payment of rent (194I) Payment of professional Technical Services

2. Responsibilities of persons responsible for paying:

Apply for TAN Deduct at source at the rate prescribed Deposit the tax deducted within the stipulated time Make available certificate of TDS to the payee File Returns of tax deducted at source The closure of the month or quarterly with the permission of the tax authorities.

3. Consequences for failure to deduct and / or remit tax:

Penalty upto tax deducted and not remitted (201&221) Interest at 15%pa. From the date of default to date of payment Penalty upto tax not deducted and remitted It may attract rigorous imprisonment not less than 3 months and may extend upto 7 years.

TAX EXEMPTION FOR NGOs U/s 11 AND 12 OF INCOME TAX ACT

Application for Registration The following documents are required to be submitted:

i)
ii)

Form 10A
The original instrument under which the NGO is established, or the Bye Laws & Memorandum of Association evidencing the creation of the NGO should be enclosed. Two copies of the Accounts of three previous years should be enclosed. Where the NGO was not in existence in any of three prior years, copies of the accounts of lesser number of years may be submitted.

iii)

TRUSTS ELIGIBLE FOR EXEMPTION U/S 11&12

i) ii) Trusts created wholly for charitable or religious purposes Trusts created before 1.4.1952 for charitable or religious purposes, authorized by a general or special order of the board, and applying their income to such purposes outside India;

iii) Trusts created on or after 1.4.1952, for the charitable purpose of promoting international welfare in which India is interested, iv) Charitable trusts created for the benefit of scheduled castes, tribes, backward classes or women and children.

TRUSTS NOT ELIGIBLE FOR EXEMPTION

Following trusts are not eligible for exemption under Section 11 and 12:

(a)

A trust for private religious purpose, which ensures no public benefit;

(b)

A charitable trust created or established on or after 1.4.1962 for the benefit of any particular religious community or case (other than scheduled castes/tribes, backward classes or women and children).
A trust or institution for charitable or religious purposes, if any part of its income or property is used or applied, or ensures, directly or indirectly for the benefit of a person specified u/s 13(3) for example the founder of the trust. Any charitable or religious trust or institution, which has not invested or deposited its funds in the modes or forms specified u/s 11(5).

(c)

(d)

INCOME TAX-PRIVILEGES TO THE DONORS

I. Under section 80G
a. Registration Under Section 80G
b. Documents to be Filled with Form 10G c. Conditions to be fulfilled Under Section 80G d. Extent of Benefit

MEANING OF CHARITABLE PURPOSE

The Charitable purpose includes relief of the poor, education, medical relief and any other object of general public utility. A purpose must in order to be charitable, be directed to the benefit of the community or a section of the community, as distinguished from an individual or a group of individuals.

MEANING OF RELIGIOUS PURPOSE

The expression religious purpose has not been defined under the Act. Religious purposes are necessarily associated with religion. Religious purpose includes the advancement, support or propagation of religion and its tenets. The income of a religious trust or institution is entitled to exemption even though it may be for the benefit of a particular religious community or caste. The exemption u/s 11 is however confined to public religious trusts only; any income from the property held under the trust for private religious purposes which does not ensure for the benefit of the public is not exempt.