About FCRA Registration
Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donation from foreign sources are required to obtain registration under section 6 of Foreign Contribution Regulation Act, 2010. Such registration under the Foreign Contribution Regulation Act, 2010 is called FCRA registration.
Benefits of FCRA Registration
- It helps those organizations which work for the benefit and better of the public and are involved in the social work.
- It helps the organizations lawfully in receiving the foreign contributions or government aids.
- An entity registered under FCRA can receive donations from foreign bodies.
Cash Transaction Limits
Daily Cash Withdrawal Limit
Cash expenses and withdrawals by FCRA-registered entities must not exceed Rs. 2,000 per day to ensure transparency.
Cash Payment Limits
As per Section 40A(3)(a) of the Income Tax Act, cash payments exceeding Rs. 10,000 per day are not deductible unless made through an account payee cheque or draft.
FCRA Account Restrictions on ATMs/Debit Cards
MHA advises against using ATMs or debit cards for cash withdrawals or online transactions.
Conclusion
The FCRA framework aims to reduce cash transactions, ensuring compliance and accountability.
Violations of these guidelines may lead to regulatory scrutiny and penalties.
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