THE 35AC APPLICATION AND ITS ENCLOSURE
i) The application is to be made in 2 Sets, written either in Hindi or English.
ii) Details such as name, address and status of applicant, the district/ ward circle where assessed/PAN number.
iii) Audited Balance Sheet, Profit & Loss Account or Income & Expenditure Account for the latest year and two preceding years.
iv) How is it constituted i.e. whether as a trust, society, etc supported by relevant documents like trust deed, rules & regulation, memorandum of association etc. and registration certificate, if any.
v) Name & Addresses of the persons managing the affairs of the association or institution, including those who left the organisation but were managing the affairs of the association or institution during the 3 years preceding the date of application.
vi) If the association or institution is notified under section 10(23)(C) or is approved for the purposes of section 80G, the particulars of such approval granted.
vii) Brief particulars of the activities of the association or institution during 3 years preceding the date of application or since inception if the association or institution is less than 3 years old.
viii) Such other information as the association or institution may like to place before the National Committee.
ADDITIONAL INFORMATION REGARDING THE PROJECT TO BE SUBMITTED
(i) Title of project or scheme;
(ii) Date of commencement;
(iii) Duration and the likely date of completion;
(iv) Estimated cost of the project;
(v) Category or class of persons who are likely to be benefited from the project or scheme;
(vi) Affirmation that no benefit from the project or scheme other than remuneration or honorarium, will accrue to persons managing the affairs of the NGO;
(viii) Such other particulars as the applicant may place before the National Committee.
35 AC Project
Importance of Sec 35 AC of the Income Tax Act
ll Non Governmental Organizations are eligible for claiming exemptions under the income tax act but for this the Non Governmental Organization has to get itself registered. Here the Organization is getting the benefits but the donors are not getting any benefits here comes the section 35AC in the limes light which provide all the benefits to the donors giving donations to the Organizations.
If there is an approval to any organization from the Central Government in respect of any particular project or scheme then the Organization has a large area of bringing in funds for the project from different business enterprises.
They won’t be facing any problem in bringing in funds as the business unit will be eligible for claiming the deduction under section 35AC for the amount paid to the Organizations as donations for any particular project or scheme.
In order to get any scheme approved by the central government the organization has to apply to the National Committee which was originally created to determine the projects or scheme that could come under the application of section 35AC. There is no restriction for any Organization to get its project approved; all the organizations can apply to the National Committee for any approval of the project or scheme.
“A certificate has to issued to the donor for claiming deduction under section 35AC” General obligation regarding the application for getting any project or scheme approved is that the company has to apply to the committee in two sets and in either of the languages that is Hindi or English and the application should consist of all the information regarding the organization like name of the organization, status of the organization its ward along with the PAN of the Organization. Along with the application the organization has to submit to the Committee its latest Audited Balance Sheet and the Balance Sheet of the last two years. The organization has to provide clarification as to how it was form, whether in respect of any trust or society along with the proof like the deed of the trust, rules and regulation or any certificate of registration. There are many other formalities that the organization has to comply along with the application for getting the project approved. All the information regarding the project should be incorporated in the application such as title of the project, commencement date, total amount to be contributed in the project along with the estimated time to be taken in completion of the project.
“There are many formalities to be complied with to get a project approved”.
Section 35AC is available to persons who have income under the head “Income from Business or Profession” but the persons not having income under the head are going to get the deduction under section 80GGA which generally provides for the donation made to these organizations. Here total deduction is available in respect of the amount paid as donation subject to the availability of the Income for claiming deduction as it cannot be carried forward as in case of Section 35AC.
FCRA Registration & Fund for NGO FCRA registration and a good FCRA status, both are compulsory to access any foreign funds by NGOs working in any part of India. But, due to lack of communication infrastructure, many NGOs find it hard to maintain the good FCRA status as well as in accessing FCRA funding.
The Foreign Contribution Regulation Act (FCRA)
Foreign Contribution Regulation Act Email: firstname.lastname@example.org As you may be aware, the Government of India has amended the Foreign Contribution Regulation Act in last year. The Foreign Contribution (Regulation) Act, 2010 has come into effect from May 1, 2011 Here are few salient from the new FCRA act: “Association” means anFCRA (Foreign Contribution Regulation Act) – 2010 The Foreign Contribution Regulation (FCRA) Bill 2010 has been recently passed by both Houses of the Indian Parliament, the ‘Good’, the ‘Bad’ and the ‘Ugly’ aspects of this. Good • Charitable organizations will be allowed to maintain multiple bank accounts for management and utilization of FCRA funds provided only one bank account is maintained…
REGISTRATION PROCESS UNDER FCRA
Under Section 6 of FCRA, it is clearly provided that any organisation having a definite cultural/ social/ educational/ religious/ economic object shall only accept foreign contribution after satisfying two conditions : (i) It must registers itself with the Central Government.(ii) It must agrees to receive foreign contribution only through one…
OFFENCES & PENALTIES UNDER FCRA
Common offences subject to severe penalty NGO’s receiving foreign contributions should guard against violating the provisions of FCRA. The following are a few common offences, which are subject to severe penalty and punishment: (i) NGO’s accepting foreign contribution without registration or prior permission. (ii) NGO’s having FCRA…
FCRA AUDIT & FILING OF RETURN
Audit by Chartered Accountant Every organisation which receives foreign contributions is required to furnish a certificate from a chartered accountant. The proforma of the certificate to be given by the chartered accountant is provided in Form FC-3. Along with this certificate, audited balance sheet and the statement of receipt and…
FCRA – BOOKS OF ACCOUNT & METHOD OF ACCOUNTING
Accounting for foreign contribution received in kind – As per rule 8(1)(a), account has to be maintained for foreign contribution received in kind. Form FC-6 provided the format and the manner in which the receipt as well as the utilisation of contributions received in kind. The entries made in FC-6 should correspond with entries made in…
Concepts & Definitions in FCRA
Meaning of ‘Association’ Section 2(1)(a) of FCRA defines the term association as : “association” means an association of individuals, whether incorporated or not, having on office in India and includes a society, whether registered under the Societies Registration Act, 1860 (21 of 1860), or not, and any other organisation, by…
The Foreign Contribution (Regulation) Act, 1976
Preamble The Foreign Contribution (Regulation) Act, 1976 (here in after referred as ‘FCRA’) was passed by the Indian Parliament and received the assent of the President of India on 31st March, 1976. The preamble to the Act reads as follows: An Act to regulate the acceptance and utilization of foreign contribution or foreign hospitality by…
FCRA funding & grant – filing for prior permission online
Instructions for filing online FC-1A Form for Application for seeking Prior Permission to accept foreign contribution by an Association having a definite cultural, economic, educational, religious or social programme under Sec. 6 of the FC(R) Act, 1976. 1. For online filing of application form for seeking Prior Permission a user…
The online registration process of FCRA
Instructions for FCRA online registration under Sec. 6 of the FC(R) Act, 1976. 1. For online filing of application form a user ID is required to be created for online registration. 2. After successful registration applicant/user can login to the ‘FCRA Online Services’ and select the option for the type…
46 NGO FCRA Account is banned
In a major crackdown on the rising flow of foreign funds to NGOs, the government has frozen accounts of 46 such organisations and prohibited another 41 from receiving and utilising foreign funds in future. Most of these organisations against whom action has been taken belong to the southern states of Andhra Pradesh, Kerala, Tamil Nadu.
How to Write a Project Proposal
Once the groundwork has been completed, proposal writing can commence. The key decision to be made at this stage is the structure of the project proposal (including the content and length). The structure is determined by the nature of the project as well as by the funding agency’s requirements. In the variety of formats, application forms, project design outlines, and grant application guidelines, it is possible to detect some common elements.
A title page should appear on proposals longer than three to four pages. The title page should indicate the project title, the name of the lead organisation (and potential partners, if any), the place and date of project preparation and the name of the donor agency to whom the proposal is addressed.
The project title should be short, concise, and preferably refer to a certain key project result or the leading project activity. Project titles that are too long or too general fail to give the reader an effective snapshot of what is inside.
If the total project proposal is longer than 10 pages it is helpful to include a table of contents at the start or end of the document. The contents page enables readers to quickly find relevant parts of the document. It should contain the title and beginning page number of each section of the proposal.
Many readers lack the time needed to read the whole project proposal. It is therefore useful to insert a short project summary — an abstract. The abstract should include:
• the problem statement;
• the project’s objectives;
• implementing organisations;
• key project activities; and
• the total project budget.
Theoretically, the abstract should be compiled after the relevant items already exist in their long form.
For a small project the abstract may not be longer than 10 lines. Bigger projects often provide abstracts as long as two pages.
This part of the project describes the social, economic, political and cultural background from which the project is initiated. It should contain relevant data from research carried out in the project planning phase or collected from other sources. The writer should take into consideration the need for a balance between the length of this item and the size of the overall project proposal. Large amounts of relevant data should be placedin an annex