Jan 20, 2025 Circulars & Notifications Attachment Link
FCRA Public Notice on TDS
The ministry of Home Affairs (MHA) recently issued a public notice addressing critical issues related to the treatment of the Tax deducted at source (TDS) under the Foreign Contribution Regulation Act (FCRA). This notice addresses key concerns regarding income tax refunds involving both local funds and foreign contribution (FC).
- Rules for handling TDS refunds involving both local and foreign contribution funds.
- Guidelines on transferring funds between FCRA and non-FCRA accounts without violating section 17 of the Act.
- Recommendations for accounting treatment of TDS deductions and refunds, including their reporting in Form FC-4.
This update is crucial for organizations managing foreign contributions and aims to resolve ambiguities while ensuring compliance with FCRA Regulations.
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