SHORT ANSWER:
NGOs in India face legal and bureaucratic hurdles such as registration requirements, compliance with the Foreign Contribution (Regulation) Act (FCRA), and annual reporting obligations.
DETAILS:
- NGOs must register under the Societies Registration Act, 1860, or the Companies Act, 2013, or the Trusts Act, 1882.
- Compliance with FCRA is mandatory for receiving foreign funds, requiring prior approval from the Ministry of Home Affairs.
- NGOs are required to submit annual returns and maintain proper accounts, which are subject to audits.
PUNISHMENT / IMPLICATIONS (if applicable):
- Non-compliance with FCRA can lead to cancellation of registration and prohibition from receiving foreign funds.
- Failure to submit annual returns can result in penalties and loss of tax-exempt status.
SOURCE:
- Societies Registration Act, 1860; Companies Act, 2013; Foreign Contribution (Regulation) Act, 2010.
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