Income arising from Foreign Contribution

Dear Sir,

We are running a clinic and for this we have purchased equipment out of FC grant. Day to day running cost of clinic i.e., Rent, elect charges, water charges, payment to sweeper and salary payment to staff is is also made out of FC grant.

We are charging a nominal amount of Rs. 30/- towards registration fee from the patients. We are also selling medicines ( at no profit) and other related items ( at no profit) to the patients and for this we are issuing receipt to the patients. In the receipt instead of mentioning it as registration fee and sale of medicine we are showing it as receipt from community contribution. Here I would like to mention that the medicines which we are selling is purchased out of the money received from patients on account of Community contribution and not from FC grant

My question is:

Do we need to deposit the registration fee and cost of medicine received from the patient in FC designated bank account ?

Do we need to issue receipt in the name of registration fee and sale of medicine / Spectacle instead of showing it as community contribution ?

Do we have to mention sales tax number / vat in case if we issue receipt showing it as sale of medicine / specs etc.


Astha Clinic

Posted in FCRA, TAX, LEGAL | 4 Comments

Fund Account Treatment – Clarification


I am working in an Indian NGO and we are getting grants from our USA based funding agency. As a general practice we are booking expenses in our books of accounts. However under certain case for ex. salary of some staff members based in India we are booking their salary  expenses in to our USA based cost centre wherein salary is being paid by us in India. These expenses are not being reflected in our books of accounts.  I would like to know whether the above practice is allowed as per the FC or IT act

With best regards


Posted in FCRA, TAX, LEGAL | 2 Comments

Some recent case laws on Charitable institutions…

Deemed provision under S.12AA is not automatic and would need to be followed with a writ

Recently Allahabad High Court (Full Bench) has ruled that non-disposal of an application for registration before the expiry of six months as provided u/s 12AA (2) would not result in deemed grant of registration.

Assessee would need to file a Writ to compel CIT to consider application. [CIT vs Muzaffar Nagar Development Authority [2015-ITRV-HC-ALL-144]].

Consistent surpluses without adequate expenditure could loose non-profit status of an entity

In another case, taking a hard view on super hospitals operating under charitable provisions, the Bombay High Court has held that an institution consistently generating surplus which is utilized to procure assets, spending meager amount on treatment of poor patients is not existing solely for charitable purpose.

Even if exemptions have been granted in past (in this case under S. 10(23C)(via) this cannot mean that it can continue in future too. [M/s Yash Society vs CCIT [2015-ITRV-HC-BOM-145]]

Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008

Posted in FCRA, TAX, LEGAL | 1 Comment

FCRA fund for seminar.

Can i received FCRA fund from individual foreigner for training/seminar fees and deposit in FC Bank account


Posted in FCRA, TAX, LEGAL | 9 Comments

Road Accidents and Capital punishment

Dear Friends,

Our Intellectuals are a strange lot. They never made enough noise, if any / at all, about thousands of deaths of pedestrians and others every year. They are worried about the rarest of rare capital punishments.

Capital punishment in rarest of rare cases is not for deterrence. It is just to punish the murderer / terrorist /rapist. Discussing the deterrent potential or otherwise of capital punishment is not correct.

Many Countries which have abolished capital punishment waged / supported many unjust wars. Some of them sell weapons of mass destruction !

It is enough if India provides world class pedestrian infrastructure and health care to prevent lakhs of deaths every year.


(click here for reference)

Posted in Pedestrian safety | 5 Comments

Involvement of Government requirement/ Taxes in organizing event to raise fund

Could anyone guide us for government requirement and taxes involved in organising a musical event to raise fund.

Early response will be appreciated.


Posted in FCRA, TAX, LEGAL | 4 Comments

Update Information within next 15 days to avail online Services of FCRA with ease

Dear SRRF Dialogue Member,
Greetings from SRRF!!!

FCRA Department has become quite active as we all know. Now it has asked all FCRA registered associations to provide various details online. Please go to the link following to access the registration screen and update details as requested. These details mainly cover address, chief functionary mobile, email id, designated bank account and utilization account details.

There is an option to review this data even after saving the information, but do not press submit button till you are sure. For Instructions click here.
Click here for related circular

MOST IMPORTANT : These details have to be provided within next 15 days.


Ramanuj Maurya
Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail:; website:

Posted in FCRA, TAX, LEGAL | Comments Off on Update Information within next 15 days to avail online Services of FCRA with ease


Dear SRRF,

Can an american citizen with an OCI card, previously called PIO, be a member of the governing body, and be a signatory of a society having FCRA.


Freddy Martin
Associate Director
Asha Society
Ekta Vihar ,R.K.Puram,Sector 6.New Delhi-22

Posted in FCRA, TAX, LEGAL | 5 Comments

Treatment of Excess Foreign Contribution

I would like to know the FCRA provisions with regard to refund of excess foreign contribution received after utilization for a specific project.


Posted in FCRA, TAX, LEGAL | Tagged | 2 Comments


Dear Sirs,

We are an organisation in MP working on healthcare. We have a donor which was not classified as a foreign company and as per the company’s directive we have been considering this money to be indian money.

We now have a confusion when while reviewing the New Companies Act wherein the subsidary company seems to become a foreign entity due to the shareholding pattern of holding company. Our donor is the subsidary company.

therfore the following are our queries

  1. are all the funds that we have received since 1/4/2014 classified as foreign donation under FCRA???
  2. if they are considered foreign donation and we have fcra but have not deposited this money in fcra account, what are the consequences?
  3. what is the corrective action that can be taken?



Posted in FCRA, TAX, LEGAL | 14 Comments