Hello
We are NGO registered under FCRA. Indian donor wants to donate to our NGO and wants us to send these funds to some NGO in Nepal for flood relief work. Do we have to comply with any regulations or we can directly transfer funds without any regulatory issues ? These funds are local Indian funds.
Surya Prakash Lunkar
Restriction on Indian NGOs for spending funds outside India is under Income Tax Act. Under IT 1961, it was covered by S.11(1), which stated that the income must be applied to such objects of NGO ‘in India’. In case the income is applied outside India, it will be treated as application only if the CBDT has allowed it to be spent outside India, either by general or special order. (S.332 of IT 2025).
Thus whether FCRA or non-FCRA restrictions apply, unless your NGO can obtain specific permission from CBDT for applying your income in Nepal.