NGOs must reveal details of foreign contributions received

Details of all foreign contributions received by NGOs, trusts and charitable organisations will now have to be specifically enumerated in the I-T returns filed with the Income Tax Department.

The Directorate General of I-T Exemption has revised the I-T return form that will now have additional columns for mentioning FCRA number and details of foreign contributions.

The need for a revised form arose after it was found that some NGOs that received considerable foreign contributions had not mentioned its details in their return of income filed.

It has resulted in the I-T department scrutinising the accounts of several NGOs and charitable trusts that had received foreign contributions in the past decade.

Concerned that charitable and religious organisations are diverting their income to acquire new assets, the government is likely to introduce a fresh tax of 15%.

The government is also worried that some NGOS are using foreign contributions to fund anti-government protests across the country.

The Home Ministry is said to have received information that funds worth crores of rupees were received by NGOs and have been given to social activists to stage protests against government policies.

Taking note of this, the government is reportedly tracking about ten NGOs. And if the allegations are proven, they can be charged criminally for sedition.

According to one source, the government initiated an inquiry after receiving the report of the Indian mission in Denmark last month.

The Indian ambassador in Denmark reported that the newly-elected minister for development cooperation, Christian Friis Bach, expressed plans to use the "Danish official development aid as a tool to generate popular unrest in recipient countries".