NGOs not furnishing annual returns to be fined

 NGOs will have to pay Rs 10 lakh or 10% of foreign contributions received by them as penalty if they fail to furnish annual income and expenditure statements for two consecutive years.

The government action came as only 10% of nearly 30 lakh registered NGOs across the country file their annual income and expenditure statements or annual returns.

According to a notification issued by the Ministry of Home Affairs, if the NGOs fail to file their returns in two years, they will have to pay Rs 10 lakh or 10% of foreign contributions received by them, whichever is less. The penalty imposed for non-furnishing of annual return after one year up to two years after December 31 every year will be 5% of total foreign funds received in a year or Rs five lakh.

A penalty of 4% of the total foreign contribution received during the financial year or Rs two lakh will be imposed for failure to furnish returns after six months up to one year after December 31 every year.

Similarly, for those who do not file the annual returns after three months up to six months after December 31 every year, a penalty of 3% of the amount of foreign contribution received during the financial year or Rs 50,000 will be levied.

It will be 2% 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 December 31 every year.