Treatment of money deposited during opening of the FCRA account?

Posted on March 10, 2014 by SRRF

Dear Sir
Greetings !

Can anyone suggest me on the following:
Our total FC fund includes some amount which belongs to our own. It means it includes the minimum balance in FC Bank account when opened and cumulative interest there on from years together. Now my question is how to utilize the same portion?

Kindly suggest .

~~~~~~~~~~~~~~~~~~~~~~~
Debi Prasad Panda,
Finance Officer,
Orissa Voluntary Health Association,
Plot No. 165, Laxmisagar, Bhubaneswar,
Odisha, Pin – 751 006.

[facebook_send_button] [facebook_like_button]

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

One Response to Treatment of money deposited during opening of the FCRA account?

  1. Subhash Mittal says:
    March 27, 2014 at 9:36 am

    Dear Mr Panda,

    Its quite a common problem, which many persons face.

    Strictly it is a loan to FCRA accounts and hence if you you wish you could take it back in non-FCRA account, by passing relevant entries both in FCRA as well as non-FCRA accounts. However since opinion on this issue is divided among experts (some feel this cannot be done and therefore could raise objections) and considering since amount used for opening a bank account is not very significant (could be as low as Rs 1000) normally not many bother about it.

    Interest of course is foreign contribution and hence should be taken to general reserve within in FCRA balance sheet, which then can be utilized where there is delay / shortage in FCRA funds.

    warm rgds

Comments are closed.