Do You Know

DYK110
Volume - 110
January 2025

The proportionate income tax refund pertaining to FCRA account needs to be transferred back to FCRA bank account.

MHA has clarified that in case the consolidated income tax refund is received in Non-FCRA bank account, proportionate income tax refund pertaining to FCRA account needs to be transferred back to FCRA bank account.

Such transfer would not be treated as a violation of section 17 of the FC(R)A, 2010 and are allowed as per spirit of the Act.

Further, with respect to accounting treatment of TDS, and its refund thereof, it was clarified that at the time of deduction, such TDS may be accounted as utilization of FC and upon receipt of refund in FCRA account, it may be considered as “Other Income” and to be reported in clause 2(I)(b)(iii) in Form FC-4.

Download
Newsletter Subscription Subscribe
SMS Alert Service Subscription Subscribe
New Sign Up
Member Login
  • Already have an account? Login!