FCRA regd association to incur exp above Rs 20000 in cheque
FCRA Department has issued a circular to incur expenditure above ` 20,000/- by cheque or draft. A copy of the circular has been enclosed herewith.
The circular advises FC registered organisations to incur expenditure above ` 20,000/- by cheque or draft, only. It further provides that organisations indulging in cash payment above ` 20,000/- shall be subjected to more intensive scrutiny.
It is noteworthy to mention that the circular make a reference to the Income Tax Act regarding the provision pertaining to expenditure above ` 20,000/-. However, there is no provision under the Income Tax Act which prohibits NGOs from incurring cash expenditure beyond ` 20,000/- for charitable or religious activities. The Income Tax Act has such a provision only for the organisations which have income under the head "Business and Profession".
Attached File : 40_14459_notice_fcra.pdf
CA SANJAY DEWAN
B.COM (H),FCA
FCMA,LCS,MIMA
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