JOIN USNGOs add Rs 5 crore as penalty to govt exchequer
Erring non-governmental organisations (NGOs) have added at least Rs 5 core to the exchequer this year as penalty after they failed to file mandatory annual returns and other statements before the deadline.
The Ministry of Home Affairs (MHA) is strictly enforcing the penalty on NGOs which have offshoot the deadline for filing the annual income and expenditure reports, officials said.
According to the Foreign Contribution Regulation Act (FCRA), the NGOs are supposed to file the returns of a financial year within nine months after the fiscal ended. The rules have stipulated graded penalty to be paid if the NGO does not file the returns by December 31 every year.
If there is a delay of 90 days, a penalty of 2% of the foreign funds received during the financial year or Rs 10,000, whichever is higher, has to be paid.
The penalty rises to 3% of the funds or Rs 20,000, whichever is higher if the delay is between 90 and 180 days.
If the delay is beyond 180 days, they will have to pay 5% of the funds received or Rs 50,000, whichever is higher, besides Rs 500 per day of the delay.
The government has been tightening the rules for NGOs since it assumed power.
It has cancelled the registration of over 10,000 NGOs in the past three years besides not renewing the registration of another 1,300 for violation of FCRA rules.