Non-governmental organisations (NGOs) not furnishing annual income and expenditure statement for two consecutive years will face a penalty totalling 10 per cent of foreign contributions received by them or Rs 10 lakh, whichever is less, the home ministry has said in a gazette notification. A penalty equivalent to five per cent of the total foreign funds received in a year or Rs 5 lakh will be imposed for non-furnishing of annual return, after one year up to two years after December 31 every year. According to an official estimate, less than 10 per cent of nearly three million registered NGOs across the country file their annual income and expenditure statements or annual returns. Registration under Foreign Contribution Regulation Act of around 15,000 NGOs were cancelled by the government in the last two years for not furnishing annual returns. A penalty of four per cent of the total foreign contribution received during the financial year or Rs 2 lakh will be imposed for failu