Is it possible to transfer the FC surplus of income over expenditure to the general fund in the domestic books of account?
Firstly, general fund is an unrestricted fund at the discretion of an association and it should not be construed as a domestic fund. Further, all funds created from FC should be reflected in FC books of account only. Hence, an organization can have two general funds i.e. one, created from foreign funds and the other from domestic funds. The same is applicable for the corpus as well as other funds too. Therefore, all foreign contribution balances or assets, whether maintained/kept as general fund, corpus fund or any other fund should be part of the FC books of account only and should not be mixed up with any fund created out of local receipts/ donations.
So, any surplus from FC can be only transferred to the FC general fund and surplus from local funds to the local general fund.
- The FCRA Department has issued a notice dated 18.07.2016 asking all FCRA registered associations to update their bank accounts (Designated and Utilizations accounts) in Form FC-6 latest by 31st August, 2016
- Detailed analysis on “Applicability of Lokpal & Lokayukta Act, 2013 for NGOs” has been released (To read more click here)
- Circular No 21/26 dated 27th May, 2016 – Having gross receipts greater than 20% may not be the sole reason for cancellation of 12AA registration of the Income Tax Act, 1961 (To read more click here)
- The FCRA Department issued a notice dated 29.03.2016 mentioning about the following extensions:
- Extension of FCRA registration upto 31st October, 2016
- Extension of time limit for applying for renewal of registration upto 30th June, 2016