Fcra
Praveen Kumar
(Querist) 10 March 2014
This query is : Resolved
Dear sir's/Madm,
I want know whether there is any exemption for the donations through the NRE accounts by the NRI to a charitable institution.
Pls clarify the position
R.V.RAO
(Expert) 11 March 2014
The rules are liberal in so far as remittance to Indian residents and charities from abroad is concerned. The remittance shall clearly specify (in FIRC - Foreign Inward Remittance Certificate) the purpose; it shall be through normal banking channel, and accounted by the beneficiary. You can donate to Charitable Institutions, which are registered under FCRA (the Foreign Contributions Regulation Act), which exist for social purpose, as, these contributions are governed directly by Home Ministry, Government of India under the said Act.
being an NRI, exemption from which income
you wish . pl. specify,so that your question can be answered.
in india's current tax regime, nri is taxable for indian income and residents taxable for global income.
Rajendra K Goyal
(Expert) 11 March 2014
Author, please reply the questions by expert RV RAO ji.
Praveen Kumar
(Querist) 11 March 2014
Dear sir,
It is Salary Income earning in Abu Dhabi.
And I want to know is, Whether donations can be transferred through a NRE account in Foreign Currency to a Un registered Trust under FCRA or not.
if Wanted to Donate How it can be.
Your reply is very much Thank full.
R.V.RAO
(Expert) 11 March 2014
contributions made by a citizen of India living in another country (i.e.Non-Resident Indian), from his personal savings, through the normal banking channels, is not treated as foreign contribution.
However, while accepting any donations from such NRI, it is advisable to obtain his passport details to ascertain that he/she is an Indian passport holder.
From donor point of view, the following guidelines will be helpful in deciding whom to donate and what are the implications:
i. If you are holding Indian Passport, you are free to donate to any NGO registered in India. Your donation will not be treated as of foreign source.
ii. If you are a non-resident Indian, not holding Indian Passport, you can donate to NGOs that registered under FCRA. Your donation will be treated as of foreign source.
If you wish to donate an NGO that is not registered under FCRA, you may give a letter of intention to donate a specified amount for a specific purpose/program of the NGO to the Central Government of India and the NGO.
NGO need to apply for prior permission, under FCRA act, by attaching your letter of intention. Once prior permission is received by the NGO, then that NGO is eligible to accept your donation.
iii. If you are a citizen of any country other than India, the norms as stated above in point (ii) will apply.
iv. Please verify the NGO for FCRA certificate before you donate..
source:www.nonprofitngo.com/ngo-fundraising/types-of-fundraising/f
T. Kalaiselvan, Advocate
(Expert) 12 March 2014
I agree with the opinion given by Mr. R.v.Rao in this aspect and I endorse his views.
