Registration under Foreign Contribution Regulation Act of around 15,000 NGOs were cancelled by the government in last two years for not furnishing annual returns. According to an official estimate, less than 10% of nearly 30 lakh registered NGOs across the country file their annual income and expenditure statements or annual returns. A penalty equivalent to 5% of total foreign funds received in a year or Rs5 lakh will be imposed for non-furnishing of annual returnRegistration under Foreign Contribution Regulation Act of around 15,000 NGOs were cancelled by the government in last two years for not furnishing annual returns. Two per cent penalty on total foreign funds received during the financial year or Rs.10,000 will be imposed for not furnishing returns for three months after 31 December every year. Photo: iStockphotoNew Delhi: NGOs not furnishing annual income and expenditure statement for two consecutive years will face a penalty totalling 10% of foreign contributions received by them or Rs.10 lakh, whichever is less, the home ministry has said in a gazette notification.

Source: Mint July 03, 2016 14:37 UTC