Query- Donation by Indians staying abroad

Posted on July 13, 2012 by SRRF

Dear Friends

I need clarification on FCRA contribution by Indian staying abroad. If an Indian staying abroad having Indian Passport and giving donation to the Trust, will it be treated under FCRA or not.

Thanks

Wing Commander (Retd) Ashish Kumar Saxena

Chairman

Akash Memorial Charitable Trust

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7 Responses to Query- Donation by Indians staying abroad

  1. Kamal Arora says:
    July 19, 2012 at 1:42 pm

    FCRA applicability has to be determined by tracing the origin of the flow of funds and hence even if the transfer is from an Indian bank or in Indian rupees but if it originated from a foreign source then FCRA would be applicable.

  2. Anup Khosla says:
    July 18, 2012 at 6:03 am

    Dear Ashish,

    No not an FCRA donation as a person holding an Indian passport is not a foreign source even if the person is resident abroad

    Regards,
    Anup Khosla

  3. Shradha says:
    July 16, 2012 at 7:25 am

    Dear Mr Ashish,

    I attended a workshop recently on FCRA implications for NGO’s. They specifically said if the donor has an Indian passport it will be non FCRA.

    Regards
    Shradha
    Samarpan Foundation

  4. Soma Satry says:
    July 16, 2012 at 7:22 am

    Dear Mr. Ashish,

    Greetings from Hyderabad!

    Your contribution to any Trust in India will not attract the provisions of the FCRA 2010. You are a citizen of India, holding Indian passport and hence the source of your contribution becomes Indian. Please refer to the definition of Foreign Contribution under the Act for better clarity.

    Thanks and regards,

    B V Soma Sastry

  5. Nirmala says:
    July 16, 2012 at 4:47 am

    Dear Mr.Ashish,

    If the money transferred from abroad bank it will be treated as FCRA amount. whether donor is having indian passport or not , it is not the criteria.

    Regards

  6. Sriraman says:
    July 14, 2012 at 7:59 am

    Applicability of FCRA is determined by the “origin” and the “flow” of the funds. For example, a receipt from a foreign bank, operating in India, under their CSR activity, will be deemed FCRA grant, even if this does not involve receipt in foreign currency and the receipt is from within India. On the other hand, if your organization has a contract with, say, WHO, Geneva and receives payment in dollars, this will not be deemed as FCRA payment, as WHO is one of the exempted donors from FCRA.

    In the case of receipt of grant from an individual, therefore, what matters is not issues of their current citizenship and place of stay. It will be determined based on the bank account from where they made the contribution. If this is a transfer from their account abroad to your society account, this will be under FCRA. If it is from their Indian INR account, this will be deemed as a local grant.

    There are questions on how paypal accounts are to be treated. This still a gray are for me and I wouldn’t want to share my views on that in this forum.

    Hope you find this useful

    Best regards

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