NGOs get 60-day exemption to file annual returns with MHA

All NGOs with the licence to receive foreign funding, which have missed the deadline to fill in mandatory annual returns, have been given one-time exemption up to May 18 to file their annual financial statement.

The Ministry of Home Affairs (MHA) made the relaxation after several NGOs, which missed the deadline for filing the annual statement for 2017-18, sent presentations for review of the cancellation of licence given under Foreign Contribution (Regulation) Act to receive funds from abroad.

According to the MHA order issued on Wednesday, several NGOs and associations explained the circumstances that led to non-filing of annual returns for 2017-18.

"Reasons cited by them include inter-alia a) dependent on their accountants or CA firms, who somehow ignored the deadlines, b) local difficulties like floods, c) mishandling of log-in or passwords by their CAs and other functionaries," it said.

"One common grievance raised by most of the NGOs is that all FCRA process is online and in many cases, the online account is operated by their CAs or tax consultant, who are aware of the strict monitoring by the Ministry. These NGOs and associations have submitted that they never intended to avoid statutory compliance under the Act," it said.

The MHA then decided to give a one time exemption invoking Section 50 of the FCRA 2010 in "public interest" to such associations from the restrictive condition of Section 14(3) of the Act to enable them to apply for registration within 60 days from the issuance of the notice.

Such associations shall submit missing annual returns electronically on the FCRA portal along with the prescribed penalty, the notification said.

Since the Narendra modi government came to power in 2014, the MHA has cancelled the FCRA registration of over 14,800 NGOs.