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can indian npo apply funds for charitable purpose abroad (Income Tax)

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This query is : Resolved

( Author )
30 December 2013

Dear Sir,

Can an Indian Charitable Institution with 12A registration, apply its funds for charitable purposes/research expenses abroad and make forex contributions to foreign institutions/foreign nationals.


( Expert )
31 December 2013

i dont think it is allowed under 11(1)(c) of the income tax act.


( Expert )
31 December 2013

Regn u/s 12 is allowed under Income Tax Act only if the articles of the Trust clearly mentions that no activity will be carried out of India. If such activity is carried out, the trust will lose its registration and this will lead to consequent cancellation of 80G exemption to the donations received by the trust.


( Author )
31 December 2013

Thanks very much for your inputs.

Is it possible to justify that it is a necessity as per conditions of funder as well as on account of nature of charitable activity, that 'research expenses abroad' is essential to carry out charitable purpose in India and therefore it is application of funds for charitable purpose in India, (even though part of expenditure is incurred out side India. Kindly provide expert comments/inputs in this regard.

Thanks & regards


( Expert )
31 December 2013

well in such a case, you can structure the transaction in a manner that the funder directly transfers the money to the research organization instead of routing it through you.



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