Demonetization and NGO – Dos and Don’ts

We know the current scenario of demonetization of old currency notes of Rs. 1000 and Rs. 500. As every day new news coming in, it is difficult for us to decide what should be the correct step to deposit old notes.

Earlier, Trust and NGOs were already under the radar of the Government before demonetization, now we can predict that more strict control coming in near future.

Let us discuss today about dos and don’ts by NGOs in a Question Answer Round.

Q – Can old notes be deposited in NGOs Bank Account and what is the time limit?

A – Yes, old notes can be deposited in NGOs Bank Account till December 30.

Q – How much cash can be deposited?

A – As such no limits, but not more than the CASH ON HAND AS ON 8th NOV.

Q – Can we take cash donation in Old notes now?

A – No. After 8th Nov, old Rs. 500 and Rs. 1000 notes are not valid tender.

Q – Can we take donation in cash in back dated and thus create more cash balance as on 8th Nov?

A – I suggest NO. Just two days back, not confirmed but, IT (Exemption) of Mangalore has issued notices to NGOs to submit authorized copy of cash books as on 8th Nov with denomination.

Q – Can we deposit cash in FC in old notes?

A – Yes you can deposit old notes in FC account but not more than cash balance of FC books as on 8th Nov. I suggest if the cash balance is not much amount get it exchanges with new notes.

Q – What about staffs advance already given before 8th Nov in old notes?

A – Do not take bake the advance and deposit in the Bank. It is advisable to ask staff members to exchange it.

Q – What about Donation boxes lying outside the offices like at airports, malls etc..?

A – Immediately get all the donation boxes back and record its cash on books as donation and keep photographs before and after opening of boxes or record a video at the time of opening of boxes with the current date newspaper. So that later, NGO can prove that the donation boxes open after 8th Nov and there were old notes which were deposited in the bank.

Q – What is advisable regarding taking donations between 8th Nov to 30th Dec..?

A – As a genuine NGO, one should not accept any donation in CASH during this period. If you received donation in new notes, kindly take the proof of the donors and keep the bank deposit slips.

Tax Notice to Trusts & NGOs on OHD

On 8th November, the Government recalled 500 and 1000 rupee notes (OHD). Some persons have apparently started using tax exempt trusts to launder their OHD. Or so it would seem.

To prevent this, Income Tax Department is sending notices to all tax exempt trusts. The notices are being issued under sec. 133(6). The Trusts are being asked to submit information on cash balance in hand as on 31-Mar-16 and 8-Nov-16. This will help the Department put a cap on the amount of OHD these trusts can deposit in their bank.

If you don't respond to the notice in time, and yet deposit a lot of OHD in bank, you may face:

1. penalty of Rs. 100 per day under sec. 272A, or

2. Scrutiny of your accounts during assessment.

If you’ve not received the notice yet, don't worry. You soon will!

And even if you don't, stay safe and don't yield to temptation. Any attempt to launder large amounts for others will be easily detected. And you may face scrutiny for earlier years as well.

HC refuses to defreeze NGO's a/c to use foreign funds

New Delhi, Nov 18 (PTI) The Delhi High Court today refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest".

"I am not inclined to give any interim relief with regard to defreezing of the petitioner account. I will have to hear it and than decide the issue," Justice Sanjeev Sachdeva said.

It further observed that Ministry of Home Affairs (MHA) in their sealed cover report, which was perused by it, has stated that they have inputs of the intelligence agencies in relation to the renewal of licence and the foreign funding.

The court, however, asked the MHA to file its counter affidavit within three weeks asking it to give reasons for refusing to renew registration of the NGO, Centre for Promotion of Social Concerns (CPSC), under the Foreign Contribution Regulation Act (FCRA).

The court has fixed the matter for further hearing on January 17.

Central government standing counsel Anil Soni, appearing for the MHA, defended the decision saying it was done in the "public interest".

"We have right to prohibit foreign contribution which are likely to affect prejudicially the public interest and also the friendly relation with any foreign state," the MHAs' counsel said.

He also said that the government was exempted from giving reasons for refusing to renew the FCRA registrations.

Soni also told the court that the National Human Rights Commission (NHRC) had issued notice to the Home Secretary after taking suo-motu cognisance of the issue, and has sought a report within six weeks.

The MHA has been asked by NHRC to provide details of the number of NGOs of Human Rights defenders that have not been allowed renewal of licence and the foreign funds received by them over the past three years, as well as the reason for non-renewal, he said.

The lawyer also said how the matter could be taken up by the commission when the high court was dealing with it.

Source: http://www.ptinews.com/news/8093085_HC-refuses-to-defreeze-NGO-s-a-c-to-use-foreign-funds-.html

Delhi HC refuses to defreeze NGO's account to use foreign funds

Delhi HC refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest". It has asked MHA to file counter affidavit in three weeks.

The Delhi High Court on Friday refused to defreeze an NGO's account enabling it to use its foreign funds as the Centre claimed the decision not to renew the foreign funding registration under FCRA was taken in "public interest".

"I am not inclined to give any interim relief with regard to defreezing of the petitioner account. I will have to hear it and than decide the issue," Justice Sanjeev Sachdeva said. It further observed that Ministry of Home Affairs (MHA) in their sealed cover report, which was perused by it, has stated that they have inputs of the intelligence agencies in relation to the renewal of licence and the foreign funding. The court, however, asked the MHA to file its counter affidavit within three weeks asking it to give reasons for refusing to renew registration of the NGO, Centre for Promotion of Social Concerns (CPSC), under the Foreign Contribution Regulation Act (FCRA)

The court has fixed the matter for further hearing on January 17. Central government standing counsel Anil Soni, appearing for the MHA, defended the decision saying it was done in the "public interest". "We have right to prohibit foreign contribution which are likely to affect prejudicially the public interest and also the friendly relation with any foreign state," the MHAs' counsel said. He also said that the government was exempted from giving reasons for refusing to renew the FCRA registrations.

Soni also told the court that the National Human Rights Commission (NHRC) had issued notice to the Home Secretary after taking suo-motu cognisance of the issue, and has sought a report within six weeks. The MHA has been asked by NHRC to provide details of the number of NGOs of Human Rights defenders that have not been allowed renewal of licence and the foreign funds received by them over the past three years, as well as the reason for non-renewal, he said. The lawyer also said how the matter could be taken up by the commission when the high court was dealing with it.

The court was hearing the plea of CPSC, better known by its programme unit People's Watch, which sought setting aside of the government's October 29 decision refusing to renew its registration. The NGO said restriction of its funds "has caused a great amount of harm and it will result in a complete halt of its charitable activities which will affect a vast number of people".

The central government counsel countered saying the NGO continues to operate and only the foreign contribution has been restricted. The MHA had recently denied FCRA registration to 25 NGOs for being allegedly involved in anti-national activities and derecognised over 11,000 such organisations for failing to apply for renewal. CPSC has contended that the only reason it was given for non-renewal of its registration was -- "On the basis of a field agency report, the competent authority has decided to refuse your application for renewal".

It has said in its plea that under the FCRA Rules, its application for renewal was to be decided in 90 days and in case of delay, reasons had to be communicated to it. The NGO has contended that since the prescribed procedures were not followed, its registration would be deemed to have been renewed after expiry of 90 days from March 14, when it had applied for renewal. To this the counsel for the MHA submitted that they are not obliged to inform the NGO about such decision.

Source: http://www.dnaindia.com/india/report-delhi-hc-refuses-to-defreeze-ngo-s-account-to-use-foreign-funds-2274711

Delhi HC refused to pass interim order on renewal of NGO licence under FCRA

The centre submitted in a sealed cover its reasons for not renewing the licence of Centre for Promotion of Social Concerns under the Foreign Contribution Regulation Act

New Delhi: The Centre on Friday submitted in a sealed cover its reasons for not renewing the licence of Centre for Promotion of Social Concerns (CPSC), a charitable trust, under the Foreign Contribution Regulation Act (FCRA), 2010.

Delhi high court justice Sanjeev Sachdeva, who was hearing the matter, perused the document and held that he would not pass any interim order.

Sanjay Parikh, counsel for CPSC, told the court that the matter was also being heard by the National Human Rights Commission (NHRC), due to which the high court should not hear it.

This contention was rejected and it was held that an alternative remedy of approaching the NHRC would not preclude the high court from hearing the matter.

During the hearing, Anil Soni, on behalf of the Centre, told the court that it was not obligated to provide reasons for decisions and the renewal was denied based on inputs from intelligence agencies.

CPSC has sought quashing of the impugned order of 29 October, by which the application for renewal of registration under FCRA was rejected by the Centre. Its FCRA registration was set to expire on 31 October.

The case will be heard next on 10 January.

Source: http://www.livemint.com/Politics/lP7e8X0zWPORSzkcffHxBO/Delhi-HC-refused-to-pass-interim-order-on-renewal-of-NGO-lic.html

Currency Recall - Risk for NGOs

On 8th November, the Government recalled all currency notes of Rs. 500 and Rs. 1,000 (OHD). These can be accepted at some merchants (Govt. Hospitals, petrol pumps, etc.) till 14-Nov. Limited amounts (Rs. 4,000) can be exchanged by individuals across bank counters on producing ID proof (Aadhar card). Larger amounts should be deposited back into your bank account.

This move has also started a panic among people hoarding OHD. Reportedly, they are offering large sums (in 500, 1000 rupee OHD notes) to charitable and religious organisations as donations. The thinking is that the currency can be deposited in NGO bank account, and then withdrawn later.

What to do if you receive such an offer? Deposits of OHD into NGO accounts must be backed by genuine book entries and donor details. Tax officers will also correlate this with deposit pattern in the past. If these do not match, they may levy high penalties of 200%+ for laundering of OHD.

You should therefore say NO to any such offers.

Notice

NGOs seek extension of FCRA licence validity till Dec 31

Non-governmental organisations (NGOs) have petitioned the Union home ministry to extend the deadline for renewing their licence under the Foreign Contribution (Regulation) Act (FCRA). NGOs require an FCRA licence to receive money from foreign donors and they have to submit annual account statements to the Foreigners Division in the ministry of home affairs.

The renewal process started in April this year and FCRA-registered NGOs were asked to apply forrenewal of their licences by June 30.

?While many NGOs have been able to secure their renewals, a sizeable number of FCRA-registered organisations still await an inkling of communication from the FCRA department,? said Voluntary Action India (VANI), which works as an umbrella organisation for other non-profits, in a press release.

Earlier, the ministry had extended the validity of licences expiring on September 30 to October 31. In their petition, the NGOs have asked the government to extend the validity to December 31.

?Non-disbursement of renewals may result in halt of major development projects as many voluntary organisations are involved in various flagship programme of the central government,? said VANI.

Business Standard tried to contact senior officials in the ministry for a comment but phone calls and text messages remained unanswered till the time of going to press.

According to some news reports, the Centre has made it mandatory for the foreigners division to seek security clearancefrom both the Intelligence Bureau and Research & Analysis Wing before granting approval to the NGOs.

The step was taken following the alleged misuse of foreign funds by the Zakir Naik-run Islamic Research Foundation. The Union government has tried to tighten conditions around NGOs, which were allegedly carrying anti-government and anti- national activities in the name of civil rights.

Source: http://indiatropes.com/IndiaTropes/NewsDetailsServlet?A6789DVVE45R456DJFTSY=11205

Environment NGOs Hail Deal to Limit Powerful Greenhouse Gases

KIGALI, RWANDA: Environment NGOs from both India and abroad today welcomed the historic Kigali Agreement to phase down "super greenhouse gases" known as hydrofluorocarbons (HFCs), saying it reflects the emerging reality of the world.

Hailing the agreement reached in Kigali to phase down hydrofluorocarbons (HFCs) by amending the Montreal Protocol, Director General of New Delhi-based Advocacy group Centre for Science and Environment (CSE) Sunita Narain said the Kigali Amendment reflected the principal of common but differentiated responsibility.

"It also reflects the emerging reality of a world in which China will have to take more and more responsibility to solve global environmental issues," she said in a statement.

Climate expert and CSE Deputy Director General, Chandra Bhushan, said India went with a clear strategy and a proactive agenda to enhance the overall environmental ambition of the deal and to protect the nation's economic interests.

Praising the Indian negotiation team, he said, the amendment finally agreed to not only protects India's economic interests, but also doubles the climate benefit compared to the previous Indian proposal.

"It will avoid HFC emissions equivalent to 70 billion tonne of CO2," he said.

The amendment is a critical step towards limiting warming and the single biggest climate action of the year, just weeks before leaders meet in Morocco for international climate talks.

The amendment establishes three different timetables for all developed and developing countries to freeze and then reduce their production and use of HFCs.

Developed countries agreed to make their first HFC cuts by 2019. Developed nations have committed to provide additional funds through the Montreal Protocol's Multilateral Fund.

China, Brazil, South Africa, Argentina, and more than 100 other developing countries have committed to freeze their HFC production and use by 2024, and make further reductions thereafter.

India, Gulf States, and Pakistan have agreed to make HFC reductions on a slower track.

Climate Action Network (CAN) said the results from Kigali on HFCs as well as the recent outcome on aviation emissions shows that governments are taking the objective of the Paris Agreement seriously.

"CAN hopes that countries will accelerate national ambition over time but soon enough to give a fighting chance for the world to limit global temperature rise to 1.5 C," it said in a statement.

"To aid the switch to newer and safer natural refrigerants, sufficient funding will be required through the Montreal Protocol's Multilateral Fund to enable poorer countries to invest in the new technology. It is vital that developed countries also share their progress on technological breakthroughs," said Benson Ireri, Senior Policy Advisor, Christian Aid.

Source: http://www.ndtv.com/india-news/environment-ngos-hail-deal-to-limit-powerful-greenhouse-gases-1474548

Updating of NGO information

All existing NGOs/VOs are requested to update their information in the NGO-PS portal with Aadhaar & PAN Numbers of their Board members/Office bearers, if not done already


Please visit: NGOdarpan at: http://ngo.india.gov.in

http://niti.gov.in/content/ngo-darpan

The NGO-Partnership System (NGO-PS) Portal (NGO-DARPAN) was earlier maintained by erstwhile Planning Commission, which has been replaced by the NITI Aayog w.e.f. 1st January, 2015. The Portal, therefore, is being maintained at present under the aegis of NITI Aayog. NITI Aayog invites all Voluntary Organizations (VOs)/ Non-Governmental Organizations (NGOs) to Sign Up on the Portal.

VOs/NGOs play a major role in the development of the nation by supplementing the efforts of the Government. This portal enables VOs/NGOs to enrol centrally and thus facilitates creation of a repository of information about VOs/NGOs, Sector/State wise. The Portal facilitates VOs/NGOs to obtain a system generated Unique ID, as and when signed. The Unique ID is mandatory to apply for grants under various schemes of Ministries/Departments/Governments Bodies.


Click here(link is external) to visit NGO Darpan Portal