NGOs
https://thewire.in/rights/who-loses-when-fcra-licences-get-cancelled
When 70 Indian start-ups laid off 17,000 employees (including 2,500 people at EdTech firm Byju’s) in the first six months of 2023, much newsprint and digital ink was devoted to analysing what it meant for the companies, their employees, the start-up ecosystem and the economy.
Compare this to the more than 100 nonprofits that have lost their FCRA in a seven-month period. Approximately 4,000 people at CARE, one of the larger global nonprofits operating in India, were reportedly rendered unemployed versus the 2,500 people at Byju’s.
And yet, there is no conversation on what this means for the economy – nonprofits contribute to 2% of the country’s GDP; on the viability of the nonprofits themselves; on the debilitating impact on their staff, most of whom are employed in the smaller towns and villages; and, above all, on the millions of vulnerable families that are now deprived of the critical services these organisations provide them.
Different kinds of work have come to a halt due to the FCRA cancellations. Efforts around child protection, immunisation, prevention of neonatal deaths, provision of health and nutrition facilities in schools and anganwadis, creating material for teacher training for early childhood learning, engaging with parents on their children’s schooling, providing skilling and livelihood opportunities for the young, enabling access to government entitlements – all of these have stopped in the regions where these nonprofits were operating. An estimated 4,000 to 8 lakh people per organisation no longer have access to the services provided by these nonprofits whose FCRA licences have been cancelled.
by Rajika Seth and Smarinita Shetty
16/08/2023
First FCRA, now think tank CPR loses its tax-exempt status https://indianexpress.com/article/india/first-fcra-now-think-tank-cpr-loses-its-tax-exempt-status-8779945/ Ritu Sarin July 6, 2023 The crux of the IT Department’s argument is that supporting litigation is not a charitable activity and, thus, CPR stands to lose its tax exemption.
Debilitating blow to an independent, highly regarded research institution that strikes at the core of its ability to function., says president; denies allegations, to appeal in ITAT.
The IT also claimed “discrepancies” in CPR’s tax filings to the tune of Rs 1.43 crore for the year 2017-2018 and Rs 81.45 lakh for the year 2021-2022. It alleged that the CPR “mixed up” funds received by it under provisions of the FCRA with its core funds. The IT also cited seven books the CPR had published and alleged that the think tank was “subsidizing” the authors but did not have any revenue from or hold ownership of the books. These grounds, listed in the show-cause notice received by the CPR on December 22, 2022 are the very same for which it has lost its IT exemption under Section 12A of the Income Tax Act.
2018 - Convocation, Gagan Sethi On Role Of Voluntary Organization https://www.youtube.com/watch?v=IQs2rqW7Np4 May 13, 2019
Gagan Bhai Sethi is a development educator, an organizational development expert and a gender trainer. As a founder of Janvikas, he has helped set up several strategic organizations such as Kutch Mahila Vikas Sangathan, Sahjeevan, Drishti and Centre for Social Justice to name a few. His professional expertise lies in human and institutional development training and design. In this video, during an India Fellow convocation ceremony, he talks about the transition of the voluntary organization into an NGO and the role of India Fellows in active citizenship.
Why Karnataka rejected the BJP https://indianexpress.com/article/opinion/columns/why-karnataka-rejected-the-bjp-8608512/ Janaki Nair . May 15, 2023 Win for Congress presents opportunity to rethink styles of political leadership, reimagine economic development, reinvent democratic norms
perhaps for the first time in the history of the state of Karnataka, civil society groups felt compelled to put aside their aversion to politics and pledge to turf out the party that was mutilating Karnataka’s historical legacies, whether in ensuring social justice (especially but not only under Devaraj Urs), decentralised democracy (especially but not only under Ramakrishna Hegde) or in ending the stranglehold of the dominant asset-owning classes over political representation. To many, the constant refrain of following the “UP model of governance” was a threat, not a promise.
In addition to the groups that had long worked in electoral matters (such as the Association for Democratic Rights), others sprang up. Bahutva Karnataka produced a set of “report cards” on the previous government, reminding voters of the extraordinary alacrity with which it passed legislation related to cattle slaughter and conversion, while openly “contracting” out its law and order functions to vigilante groups.
A movement called “Eddelu Karnataka” (Wake Up Karnataka) enjoined citizens to slough off their (political) slumber, and exercise forethought in the run-up to this election. EK drew on the moral authority of several well-known litterateurs, scholars and activists to set off a campaign blitz that reached deep into rural areas as much as cities. As a result, there was not a little borrowing of ideas and slogans of civil society groups by political parties.
The new government, which has raised expectations among a wide range of groups, can accept the new political consciousness of its people as an asset, and commit itself to new forms of accountability that no longer exist.
How a new tax law has stumped Tata Trusts and top corporate donors By Dev Chatterjee February 24, 2023 https://www.rediff.com/business/report/how-a-new-tax-law-has-stumped-tata-trusts-and-top-corporate-donors/20230224.htm
In the Budget memorandum, the government said several instances have come to its notice that certain trusts or institutions are trying to defeat the intention of the legislature by forming multiple trusts and accumulating 15 per cent at each layer.
HP Ranina, a senior tax expert, said the government was trying to plug the loophole as several trusts were opening multiple trusts to save on taxes.
“The government may agree to help those trusts such as Tata Trusts, which work with government organisations to do social work,” Ranina said.
Tata Trusts, which earns dividend income from its 66 per cent stake in Tata Sons, works alongwith several other non-government organisations in the fields of education, healthcare and environment protection.
"Disallowing 15 per cent of the expenditure, if donations are made to another charitable organization, clearly means suffocating small charities of funds and curbing its resources and networks,” Merchant said.
Trusts are planning to appeal to the Indian government to repeal the proposed amendment or modify it in such a way that it should not impact their work at the grassroots level.
Devastating Effects of Proposed Amendments of Union Budget 2023 on Trusts and Charities https://www.change.org/p/nsitharaman-finminindia-union-budget-2023-amendments-will-have-devastating-effects-on-trusts-and-charities-noeaseofdoingcharity
Comment on Whatsapp: It is like round tripping general donations as corpus. So the first part of the 23-24 finance bill says...only those where donors have given specifically as corpus would qualify to enter as corpus in the first place. The old five year accumulation even after changing to just 15 percent was round tripped using the first in first out principle..could not apparently stop these guys from getting corpus in under tax exemption to both donor and receiver, which after liberalisation of approved securities went partially into their own corporate linked MFs. Then withdrawn when needed and then brought back. But the problem is that genuine ngos who do get windfall incomes are in deep trouble.
The issue of double tax deduction is created because they grant exemption at the income stage. What they should do is apply the exemption either only at the income stage or after computing excess of income over expenditure.. either as 80g or ccc or application of funds. Since both ways are available to round trippers they will use it..
My main issue is that this system generates much paper work that only adanigiri can manage.
That is why they now ask for 10 year records. As they did in the last finance act.