- Does an FTE who leaves mid-contract qualify for gratuity under the new Labour Code? An NGO issued a Fixed Term contract from December 2024 to December 2025, renewed it for 2026, and the employee left on 30 April 2026. The new Labour Code came into force on 21 November 2025. Is gratuity payable in this case, and from which date is their service counted? → Click here to read
- How should NGOs write off a lost asset under FCRA and Income Tax rules? Assets sometimes go missing, and the write-off process is not always obvious. What is the right way to dispose of a lost asset in the books, under both FCRA and Income Tax rules? → Click here to read
- Is an examination fee an incidental activity or a main activity? A charitable NGO cannot charge a fee for its main activity, but it can charge for incidental activities. Where does an examination fee at the end of a course fall, incidental or main? → Click here to read
- How do you record the settlement when a donor cancels a receivable equal to an asset on your books? A society has an asset of Rs 1000 funded by a donor, and a receivable of Rs 1000 from the same donor. The donor has now indicated the amount will not be paid. How should this settlement be placed in the accounts? → Click here to read
Have a compliance question of your own? Please feel free to ask your question on our forum or website.
Best wishes,
Team PATTIC
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