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ngo compliance Registration - An Overview

NGO Darpan is a government-operated portal managed by the Ministry of Rural Development, Government of India, designed for the registration and reporting of non-governmental organizations (NGOs) that receive government funding. The portal offers a platform for NGOs to register, update their information, and file reports detailing their use of funds and the activities they have carried out. For registration, NGOs must meet the eligibility criteria, including being a non-profit organization engaged in rural development or poverty alleviation initiatives. Completing the NGO Darpan registration is mandatory to establish credibility as a non-profit organization and ensure compliance with government requirements. More details about eligibility and the registration process can be found on the NGO Darpan portal.

 

Form 10BD Statement & Certificate of Donation

Section 80G of the Income Tax Act, 1961 provides tax deductions for donations made to charitable organizations. To ensure the accuracy of donations and tax claims, the CBDT introduced Forms 10BD and 10BE, effective from the financial year 2021-22. These forms enhance transparency in reconciling donations received and tax deductions claimed.

 

 

What Is Form 10BD & 10BE?

Form 10BD contains details of the donations received by charitable organizations. It must be filed electronically, with a digital signature or Electronic Verification Code (EVC). The filing deadline for the financial year 2021-22 is 31 May. Information required in Form 10BD includes the donor’s name, address, donation amount, and the method of donation.

Upon submission, Income Tax will issue a certificate in Form 10BE with details of the charitable organization, including its PAN, approval number under sections 80G and 35(1), and the donations received.

 

Consequences of Non-filing of Form 10BD

If Form 10BD is not filed on time, a fee of ₹200 per day will be charged for the delay. Additionally, a penalty under Section 271K of the Income Tax Act may apply, ranging from ₹10,000 to ₹1,00,000.

Registration NGO Darpan COMPLIANCES

NGO Darpan Registration
All NGOs that receive government funding must register with the NGO Darpan portal, launched by the Ministry of Rural Development in 2014 to promote transparency and accountability in the NGO sector. The registration process is straightforward and can be completed online.

 

CSR-1 Registration
From April 1, 2021, all NGOs seeking corporate social responsibility (CSR) funding from companies are required to register with the Ministry of Corporate Affairs (MCA) through Form CSR-1. This form gathers information about the NGO’s activities, finances, and governance. CSR funding is available for companies meeting certain financial thresholds, including having a net worth of ₹500 crores or more, a turnover of ₹1,000 crores, or a net profit of ₹5 crores.

 

Section 80G and 12A Registration
NGOs registered under Section 80G of the Income Tax Act, 1961, are eligible for tax deductions on donations from individuals and companies. To qualify, NGOs must meet specific criteria, including being a non-profit organization with at least 50% independent board members. NGOs registered under Section 12A are exempt from income tax, provided they are non-profit organizations using their funds for charitable purposes.

CSR-1 Registration for NGOs
NGOs must register with the MCA to receive CSR funding, which is mandatory for companies meeting specific financial criteria. CSR-1 registration allows NGOs to receive CSR funding from companies, and the process typically takes around a week once all documents are submitted. If approved, the NGO will receive a CSR-1 registration certificate.

 

Section 8 Companies Annual Compliances
Section 8 companies (non-profits) are required to meet specific annual compliance obligations to maintain their charitable status. The compliance tasks typically covered under an annual compliance package for Section 8 companies include:

  1. Appointment of an auditor

  2. Maintenance of a register

  3. Convening statutory meetings

  4. Directors’ report

  5. Filing financial statements

  6. Filing tax returns

  7. Filing financial statements

  8. Filing required returns

These steps are essential for ensuring continued recognition as a non-profit organization and avoiding penalties.

Documents Required for NGO COMPLIANCES Registration

To complete your NGO Darpan registration smoothly, you’ll need to keep the following documents and information ready:

Make sure you have the following documents and details ready to successfully register or revalidate your NGO:

Documents Needed for CSR-1 Registration :-

Frequently Asked Questions

NGOs can run into several hurdles when it comes to meeting compliance requirements. One major issue is understanding and keeping up with various legal and financial rules, including tax filings and documentation. Another challenge is making sure all donations are used exactly as promised—strictly for the cause—and not for any personal or unauthorized use. These factors make proper record-keeping and transparency essential for smooth operations.

NGOs can stay on track with compliance by setting up solid financial practices, keeping accurate and up-to-date records, and regularly reviewing their finances through internal or external audits. Having a well-organized system for tracking income, expenses, and donations helps ensure everything is transparent and in line with legal standards.

If an NGO doesn’t follow the necessary legal and regulatory guidelines, it can face serious consequences like fines, legal trouble for the people responsible, and damage to its public image. It may also lose the trust of donors and supporters, which can affect funding and limit the NGO’s ability to make a positive impact in the communities it serves.

To avoid compliance problems, NGOs should set up strong internal rules and procedures, make sure their team is well-trained on legal responsibilities, and regularly review their operations through audits. Staying open and honest in their work, and getting advice from legal or compliance experts when needed, can also go a long way in keeping things on track and within the law.

To avoid compliance problems, NGOs should set up strong internal rules and procedures, make sure their team is well-trained on legal responsibilities, and regularly review their operations through audits. Staying open and honest in their work, and getting advice from legal or compliance experts when needed, can also go a long way in keeping things on track and within the law.

NGO COMPLIANCE Registration

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