Clarification regarding treatment & accounting of refund of TDS pertaining to Foreign Contribution
The Ministry of Home Affairs (FCRA Division) has issued a clarification regarding refund of TDS pertaining to Foreign Contribution.
The clarification has been issued in response to the repesentation received from Associations over the difficulties faced by them in transfer of FCRA component of funds out of the refund of tax deducted at source (TDS) received in their non-FCRA bank account.
The matter has been examined by the Ministry and its has been decided that in case of consolidated income tax refund is received in non-FCRA bank account, the proportionate income tax refund pertaining to FCRA account needs to be transferred back to FCRA bank account. Such transfer shall not be treated as violation of section 17 of the Foreign Contribution (Regulation) Act 2010 and are allowed as per spirit of the Act.
Further, with respect to the accounting treatment of the TDS and refund thereof, it has been clarified that at the time of deduction, such TDS may be accounted as utilisation of FC and upon proper receipt of refund in the FCRA account, it may be considered as “other income” and to be reported in clause 2(i)(b)(iii) if Form FC-4.
Download FCRA Public Notice Click Here >>
Mere CBDT Instructions cannot absolve individuals of their obligation to explain the source and nature of their gold holdings, even…
Empanelment of General Observers for ICSI Examinations December 2026 ICSI has invited interested members to enroll as General Observers for…
ITAT answers some important and inter-related issues relating to deduction u/s 80IA In a recent judgment, ITAT has dealt with…
Carry forward of loss can not be denied for belated return, it is only the set off in subsequent year…
Where sales are duly recorded in books and VAT returns, to treat it bogus sales, AO must bringing cogent adverse…
Expenses to celebrate Diwali with staff creates a goodwill and, therefore amounts to expenses incurred for the purpose of business…