Bring NGOs under single, independent regulator: ICAI to govt
With a number of non-governmental organisations (NGOs) coming under income tax scanner for not filing returns, the Institute of Chartered Accountants of India (ICAI) has told the government to bring them under a single and independent regulatory body.business Updated: Mar 06, 2015 00:23 IST
With a number of non-governmental organisations (NGOs) coming under income tax scanner for not filing returns, the Institute of Chartered Accountants of India (ICAI) has told the government to bring them under a single and independent regulatory body.
The apex body, in a recent note to the government, has said that the setting up of the central regulatory body would make it easier for it to keep a watch on issues related to filing of returns.
At present, they come under various regulators and authorities, and with some of them often coming under the ambit of different state governments, it limits ICAI’s role.
“We have recently written to the government urging it to set up a central regulatory kind of a body to monitor the functioning of the NGOs... it is important to note where funds are coming from and where they are getting spent,” Manoj Fadnis, president, ICAI, told HT.
The government recently said in the Rajya Sabha that more than 31,000 NGOs were served notices for not filing annual returns on their foreign contributions. Kiren Rijiju, minister of state for home, said that in 2011-12, notices were sent to 21,493 associations which were found to have not submitted annual return under the Foreign Contribution (Regulation) Act 2010 for the years 2006-07, 2007-08 and 2008-09. That apart, in 2014, as many as 10,343 associations had been issued notices for not filing annual returns for 2009-10 to 2011-12.
The home ministry currently reviews and audits the flow of funds in NGOs from abroad. It also issues notices to those that do not file their returns.
According to estimates, foreign donations in excess of `10,000 crore annually flow into NGOs coffers.