Demonetization & NGOs

Dear Sir,

We need to have your advice about whether, we, as an NGO, Could be allowed for a limited period, under the recent De-Monetizing move of the existing currency of Rs.500 and Rs.1000 by the Govt. of India.

We, as an NGO, in the Chattisgarh state, keep receiving the membership fee, etc. from various districts of the state, as per the declaration mentioned in our bye-laws. Now, as, the membership fee amount had already been collected by our volunteers in different districts of the Chhattisgarh State which consists of considerably huge numbers of Rs.500 and Rs.1000 currency, which has recently been de-monetized by the Govt. of India.

Anyway, we, as an NGO with the network in all the districts of the Chhattisgarh-state, along with all our board members, designatories, volunteers and beneficiaries, welcome and support the move.

Now, The problem with us, as an NGO, is related to the information & knowledge, about the legality of making deposit into the bank. Please let us know, whether, we could deposit the money, received as the membership fee from our female-beneficiary-members, mentioning the receipt numbers with date of receipt; and also could we seek formal-permission by our Banker or RBI, regarding the issue, mentioning the limit of the total deposits, to be made during the permitted-period, like December 30th 2016.

Seeking your authentic advice in this matter, urgently…….


With Regards,
Tapash Chatterjee
Secretary & CEO
Near Shiv Mandir, Hardware Line,
Supela, BHILAI–490023,
Chhattisgarh, India

Posted in FCRA, TAX, LEGAL | 9 Comments

Advance payment to staff from FCRA Account

Dear Members,

I wish to know if any advance can be paid to staff for his/her foreign visit on an invitation by foreign donor for meeting/workshop under FCRA or not?


Jagdeep Kakkar

Posted in FCRA, TAX, LEGAL | 2 Comments

Can an INGO branch office employ foreigners?

Dear Members,

I am a member of SRRF group.

“Can a branch office in India of an INGO can hire Foreigners on their roles”

Thanks for your support and will wait for your revert.

Best Regards,


Amit Gulati

Posted in FCRA, TAX, LEGAL | 1 Comment

International organizations which shall not be treated as foreign source

FCRA Department has further enhanced list of International Donors (foreign source) which are exempted from FCRA vide its ORDER NO. SO 3210(E) [F.NO.II/21022/23(07)/2015-FC-III], Dated 17-10-2016.

These organizations are as follow:

  1. South Asian Association for Regional Cooperation Disaster Management Centre (SDMC);
  2. Global Fund for Disaster Risk Reduction (GFDRR);
  3. Asian Disaster Reduction Centre (ADRC); and
  4. Asian Disaster Preparedness Centre (ADPC).

This now means that there now 113 foreign source organization which are exempted from FCRA.
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 International organizations which shall not be treated as foreign source

Can grant be made to foreigners?

Dear Members,

I am writing on behalf of India Foundation for the Arts, a grant making organization using FCRA and Indian funds. I would like to know whether we can make grants as per the legal provisions in India.

  1. “Can foreign nationals be a principal researcher/grantee in case of a grant made to a non profit organization registered in India”?
  2. Can grant be made to PIO and OCO card holders?

Looking forward to your valuable opinion.



Posted in FCRA, TAX, LEGAL | 4 Comments

Tax Treatment of Funds Accumulated

Our NGO has saved non-specific donations in FDs for a ‘rainy day’. Some have exceeded 5 years and we are now told that we have to pay 45% in taxes for under-utilization of funds and if we delay the process it will be 90%. How are we supposed to be self sustaining if this is the case?

Aziza Tyabji Hydari

Posted in FCRA, TAX, LEGAL | 9 Comments

Treatment of assets on completion of FCRA projects

Dear Members,

In a Society registered in Lucknow under the Societies Registration Act 1860 some assets have been purchased in projects under FCRA . On completion of the project the society has been allowed to retain these assets by donors. What would be the treatment of these assets in the books of Society and how is it to be presented in the balance sheet of the Society as a whole.

With Thanks & Regards

CA Rajeev Sharma
B.Com. F.C.A.D.I.S.A.(ICA)
Rajeev Siddharth & Associates
Chartered Accountants
308 Sahara Shopping Centre
Faizabad Road
Lucknow 226 016

Posted in FCRA, TAX, LEGAL | 3 Comments

CSR Funds Foreign or Local

Dear Members,

We are an NGO working on sustainable energy, sustainable agriculture and waste management. An Indian company with 53% foreign holding is offering funds to one of our projects. Please advise whether do we need to treat this as foreign contribution or as an Indian contribution?

Best Regards,

Vidya Sagar Devabhaktuni
President, SKG Sangha
“Mandara” 3rd Main,
Muneshwara Nagar, Antharagange Road
KOLAR – 563 101
Karnataka State, INDIA

Posted in FCRA, TAX, LEGAL | 1 Comment

US Citizen in a Board of Society

Dear Members,

A Society registered in Delhi under the Societies Registration Act 1860 likes to know whether it can have a person of Indian origin with USA citizenship on the Governing Board as an Institutional Representative.

The individual is Chief Functionary of an another Institution registered in India as a Trust that is also registered in the USA according to their own statutes The Individual lives in both the countries from time to time.


Vijay K. Sardana

Posted in FCRA, TAX, LEGAL | 3 Comments

Can foreign nationals work as volunteers on a tourist visa

Dear Dialogue members,

A number of foreign nationals come on a tourist visa and besides sightseeing thye work as volunteers in many NGOs. No payments are given to these volunteers. Are they allowed to work as volunteers on a tourist visa.


Dr Kumkum Srivastava
Public Health and Education expert

Posted in FCRA, TAX, LEGAL | 7 Comments