Query from IIM, Ahmedabad

Dear Members,
Institute would like to know, through the FCRA grant received by the Institute for research project, can faculty members be paid over and above their regular salary as one time pay off for doing the research proposed in the project. ¬†Local consultant view sometime back was that it can’t be paid. Will appreciate responses and guidance on this matter.
Prof. B. H. Jajoo
Dean Indian Institute of Management Ahmedabad

Vastrapur, Ahmedabad 380 015 India

This entry was posted in FCRA, TAX, LEGAL. Bookmark the permalink.

2 Responses to Query from IIM, Ahmedabad

  1. Soma Satry says:

    Dear Prof. Jajoo,

    Greetings from Hyderabad!

    In case IIMA has a provision under the approved budget of the research grant whereby you are in a position to pay something additional to the faculty, this can be paid as consultancy and this can also be justified in terms of additional work hours put by the faculty for the research project. This will be paid as consultancy by deducting 10% TDS and should not be clubbed with the regular income i.e. salary being paid to faculty.
    Moreover, as per FCRA 2010 remuneration paid towards research activities will not be considered as administrative expenses.

    Thanks and regards,
    B V Soma Sastry

  2. Sriraman says:

    Dear Professor

    Payment to the professors for their services has to be more of a “management decision” rather than an accounting decision and a legal decision. FCRA, per se, does not prohibit any such payments. However, this will have to be guided by the “compensation rules” of the institute and will be subject to Income Tax, as per IT rules. It is not clear why your local consultant had a different view on this. For payment to any individual, towards services rendered, you do not require any special permission under FCRA.

    Hope this clarifies.

    Best regards

    Sriraman

Comments are closed.