Compliance for Non-Governmental Organizations (NGOs) in India involves adherence to various statutory requirements. Here is a general compliance checklist for NGOs operating in India:

1. Registration:

  • Ensure that the NGO is registered under the appropriate legal structure, such as a Trust, Society, or Section 8 Company.

2. 12A and 80G Registration:

  • Obtain and maintain registration under Section 12A for income tax exemption.
  • Apply for 80G registration for donors to avail of tax benefits.

3. FCRA Registration:

  • If the NGO receives foreign contributions, obtain and maintain registration under the Foreign Contribution (Regulation) Act (FCRA).

4. Annual Returns:

  • File annual returns with the concerned authorities, including the Registrar of Societies or Registrar of Companies, as applicable.

5. Board Meetings:

  • Hold regular board meetings as per the organization’s bylaws.

6. Audit and Financial Statements:

  • Conduct an annual audit of the organization’s accounts by a qualified auditor.
  • Prepare and submit audited financial statements.

7. Annual Report:

  • Publish and circulate an annual report, including activities, financials, and impact.

8. PAN and TAN:

  • Obtain and maintain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

9. Employee Compliance:

  • Comply with labor laws, including Provident Fund (PF) and Employees’ State Insurance (ESI), if applicable.

10. GST Registration:

  • Register for Goods and Services Tax (GST) if the organization’s annual turnover exceeds the prescribed limit.

11. NGO Compliance Certificate (Form 10BD):

  • Obtain and submit Form 10BD, a certificate from a qualified accountant, confirming compliance with the conditions of the tax exemption.

12. ITR-V Acknowledgment:

  • File Income Tax Returns annually and submit the ITR-V acknowledgment to the Centralized Processing Center (CPC) if e-filing.

13. Maintain Records:

  • Maintain proper records of financial transactions, including receipts, vouchers, and bank statements.

14. Utilization of Funds:

  • Ensure that funds are utilized for the stated charitable purposes.

15. NGO Website and Reporting:

  • Maintain an updated website with relevant information about the organization’s activities, financials, and impact.
  • Provide timely reports to stakeholders, including donors and government agencies.

16. Compliance with FCRA Regulations:

  • Adhere to the reporting and compliance requirements under FCRA, including filing annual returns.

17. Legal Compliance with Local Laws:

  • Ensure compliance with any state-specific or local laws applicable to NGOs.

18. Renewal of Registrations:

  • Renew registrations, such as FCRA, 12A, and 80G, as required.

19. NGO’s Act Compliance:

  • Be aware of and comply with the provisions of the relevant NGO’s Act under which the organization is registered.

20. Stay Informed:

  • Stay informed about changes in laws and regulations affecting NGOs.

NGOs should consult with legal and financial professionals to ensure accurate compliance with all applicable laws and regulations. This checklist is a general guide, and specific requirements may vary based on the nature of the NGO and the jurisdiction in which it operates.