Dear Members,
Greetings to ALL!
My query is about receipt of individual donations from NRE account to a NGO which does not have FCRA certification…
What can be done if donations of Rs. 2,500 – 10,000 are received in NGO’s account?
I am sure this query must have been answered several times before…please pardon me for asking the same question again…
With kind regards,
Asif
I think query has been well answered. I will just like to supplement about differences between NRE & NRO accounts. While both NRE & NRO are rupee accounts. Funds deposited in NRE accounts are freely repatriable and hence only income earned from sources outside India would be credited to such an account. While NRO accounts have restrictions on repatriation and also normally credits to this account are taxable in India.
As far as donations to Indian NGOs is concerned, as rightly pointed out by other members, that is decided by the citizenship of the NRI and not the type of accounts, since FCRA Act defines Foreign Contribution by who is providing the money and not where it has been generated.
If the donor is an Indian Passport holder- then no problem, as it is considered local funds. However, if a foreign national then I believe you need to refund the donation.
Regards,
Anup Khosla
Sent from my iPhone
adding to the query.
What are NRO accounts. and can one without fcra take donations from nro accounts?
A NRO account is a non resident ordinary account and can be held/ opened by a non resident of any nationality. A donation made by an Indian national from any account, be it NRO, NRE or one held outside India can be accepted by a NGO not having FCRA registration. The key being the nationality of the donor or donor entity.
Regards,
Anup Khosla
Dear Asif,
Please note that if the Donor is holding Indian Passport than there is no restriction on making Donations to NGO not having FCRA Registration but if the Donor is holding Foreign Passport than he/she will be treated as Foreign National and cannot donate to the NGO who does not have FCRA Registration.