Goa’s diverse non-profit sector is witnessing a wave of concern after the Income Tax Department issued notices to NGOs and charitable trusts asking them to come in person to Bengaluru for document verification and the renewal of their income-tax exemption status.
Impelled by the recent changes under the Finance (No.2) Act, 2024, this event signifies a move towards a more centralised process of obtaining the exemption. However, it also provokes a number of questions regarding the accessibility, feasibility, and even consideration of the local people.
Throughout the years, NGOs and trusts in Goa have been engaging in a less centralised manner, with work being done by local offices and regional support systems. It appears that the new instructions require a face-to-face interaction in Bengaluru, despite the participants being miles away from their locations. The worst part is that the small organisations with few resources will get heavily affected by this change because many of these organisations are community-driven and thus have tight budgets and little to no administrative infrastructure. Moreover, to dispatch district representatives on short notice to another state not only adds to the cash flow issue but also puts the fundamental goal of community service at risk.
The Goa Chamber of Commerce and Industry (GCCI) has moved an application to the power holders, urging them to bring about changes and support an online, faceless verification process. Digitalisation is in harmony with worldwide practices and acts as a tool of transparency and efficiency. In an era where technology is making rapid inroads into all spheres of life, this move is puzzling.
The absence of regional verification centers and the non-existence of virtual options reveal a major difference between the policy’s provisions and its actual implementation, and that, consequently, small NGOs that have been fading into obscurity run the risk of losing their operational viability.
The experience of a Guirim-based charitable trust is a clear illustration of these problems. The trust had to face the trouble of logistics after being summoned to Bengaluru on short notice during Diwali celebrations, failing which their exemption could remain uncertain. Situations like these serve as a reminder of the necessity of a flexible and sensitive approach to the surrounding community’s reality, with one that also factors in the nature of grassroots organisations.
These issues are not emanating from Goa alone; similar worries are voiced by others all over India. Various advocacy groups have urged a re-examination of the centralised verification model while stressing the need to establish regional facilitation centers or the use of digital methods for verification, as it would make the compliance processes less time-consuming and eliminate hurdles. The challenge that the coming deadline for return filing poses only makes the matter more pressing as the uncertainty regarding the exemption status endangers the continuation of community programmes and NGOs’ activities.
It is true that the main purpose of centralising and imposing stricter compliance measures is to improve transparency and prevent the misuse of funds, but that being said, their execution needs to be compatible with the realities of the regions and NGOs’ operations. It is upon the policymakers to decide on the most feasible and approachable verification methods, which would help conserve the spirit of charitable work. NGOs should be able to perform their indispensable functions in society and devote themselves more to their mission of service and community development without the burden of bureaucratic obstacles.
