Dear Members
Warm greetings from New Delhi!
As per the new FC-4 Return, following is to be shown separately:
“Foreign Contribution received during the financial year:
(i) Directly from a foreign source
(ii) as transfer from a local source”
Earlier the FCRA Rules were requiring disclosure of Name, Address, Purpose etc. of both Direct Foreign Contribution as well as FC through an Indian entity (deemed FC).
Our query is regarding the deemed FC. Whether the same should be shown in FC-4 under:
(i) Directly from a foreign source or
(ii) as transfer from a local source
If FC is received through an Indian entity & has an Indian address, as per the “deemed FC” concept, such contribution should be shown under “as transfer from a local source”. However, when we enter details as per purpose-wise contribution, it takes only the contributions received “Directly from a foreign source”.
It means one of the following:
(i) FCRA does not require Donor particulars of “deemed FC”
(ii) Even “deemed FC” should be shown as “Directly from a foreign source” which may be considered as not correct presentation
(iii) FCRA new software has to be amended to accommodate this problem
You are requested to guide us with the correct presentation for contributions received from donor with Indian address considering the above mentioned limitation
Warm Regards
Anutam
Dear Anutam, what you have observed is correct.
I agree with Ameet that please wait for another week before filing your annual return, presently the website is being updated frequently.
Dear Anutam Ji
Greetings!!
In new FC-4 as of now only required giving purpose wise details of the amount which have received directly from foreign source and not as subsequent recipient/local sources. But it is not sure that this will right process as this is not mentioned in FCRA Act/Rules. FCRA department are changing their software frequently and it may be possible they do change the same.
Ameet Miittal