Donation from NRI – Is it FCRA or Non-FCRA

10 Responses to Donation from NRI – Is it FCRA or Non-FCRA

1. V.NAGARAJAN says:

   April 22, 2015 at 1:18 pm

   If it is received from abroad, in Forex need to be deposited in FCRA designated account and to be reported. If it is from his Indian source and tax paid, trasnferred from his Indian Bank account in India (NRO) account this will have to be treated as location donation.

   V.NAGARAJAN BBA FCA
   • Subhash Mittal says:

     April 22, 2015 at 3:10 pm

     First of all welcome Nagarajanji to SRRF Dialogue. It is great to have you here. This is for information of those SRRF Dialogue members, who may not be aware about him, that Mr Nagarajan is a chartered accountant and stalwart in the social development sector.

     Coming to your comment, I think it has added a new dimension to the debate, since what you are saying is that if the funds are from Indian Income of a foreign source, it will be treated as local money. Hmmm… very interesting indded.

     warm rgds
2. Prakash Gupta says:

   April 22, 2015 at 12:54 pm

   Dear Mr. Kalsi,

   Please confirm whether you are NGO is registered under FCRA. It is needed to give reply to a query raised by your email dated 20.04.2015.

   Thanks
   Prakash Gupta
3. Pankaj Tomar says:

   April 22, 2015 at 7:41 am

   It is depends on NRI nationality. If he Indian passport holder then money should be deposited in indian account

   Pankaj Tomar
4. B V Soma Sastry says:

   April 21, 2015 at 1:48 pm

   Dear Kalsi,

   You can without any worry deposit the amount received from NRIs in the NFC account. FCRA recognizes the source of funds and NRIs being Indians, the amount will be treated as NFC irrespective of whether the amount is received in foreign currency or INR. In case of a foreigner, even if the donation is made in INR the contribution will be treated a FC. Please ensure that you seek a copy of the passport from the donor for your records. I would also suggest you to refer to the FAQs available on FCRA on several forums, including the FCRA website itself.

   Thanks and regards,

   B V Soma Sastry
5. Surat Sandhu says:

   April 21, 2015 at 6:48 am

   My understanding is that it depends on the status of the NRI. If he is an Indian passport holder then money coming from any bank from him can be deposited into an NON-FCRA account. To assure ourselves we must have a copy of his passport.
   Best

   Surat
6. S.S.Shiva says:

   April 20, 2015 at 7:47 am

   FCRA Act defines foreign fund as a fund received from a foreign source. Though the donor is an NRI, if he donates in foreign currency or a foreign bank cheque, it will be viewed as a fund received from a foreign source only and has to be deposited in FCRA account. The bank will also report to MHA about such receipt of foreign money. If he gives the same donation in Indian currency or Indian bank cheque, then it can be deposited in the local account.
   • Subhash Mittal says:

     April 21, 2015 at 2:31 pm

     As Anup Khosla has said, funds rec’d from Indian nationals (indicator being whether a person is Indian citizen holding Indian passport), are Indian monies (irrespective of the colour of the money, i.e. foreign or indian). Though sometimes bankers do not accept local monies in FCRA bank account, but then you need to convince the banker that the money is from foreign source.
7. Anup S. Khosla says:

   April 20, 2015 at 7:47 am

   Depends strictly on NRI’s nationality. If an Indian national / passport holder, then may be deposited in normal Indian Rupee domestic account. If of any other nationality, then FCRA Account.
8. Rakesh Goswami says:

   April 20, 2015 at 7:26 am

   Donation from NRI will go into local bank account

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