Interest on foreign contribution- form 10B filing
This query is : Resolved
11 September 2024
Interest income generated from Foreign contribution (FCRA a/c) is treated as deemed foreign contribution. It is merely an income but not a voluntary contribution. if it is so, in which clause it should be reported in form 10B. No, specific clause found for me. Is it required to disclose such income in form 10B.
12 August 2025
Background:
Under the Foreign Contribution Regulation Act (FCRA), interest income earned on foreign contribution (FC) funds kept in a designated bank account is generally treated as deemed foreign contribution.
This interest is not a voluntary contribution but income arising out of foreign contribution.
Reporting in Form 10B (FCRA Annual Return):
Form 10B requires detailed reporting of receipt and utilization of foreign contribution.
The form includes sections for:
Foreign Contribution received
Utilization of Foreign Contribution
Income earned from foreign contribution
Where to Report Interest Income in Form 10B?
Clause 6 (Schedule 1): Details of interest or other income earned from foreign contribution.
In the Income & Expenditure Statement or Utilization Report section, there is usually a line or clause to report interest income earned on foreign contribution separately.
If no specific clause appears labeled “interest income,” it should be disclosed under the “Income earned from Foreign Contribution” or a similar head as per the instructions.
Is Disclosure Mandatory?
Yes, the interest income earned from foreign contribution must be disclosed in Form 10B.
This is important for transparency and compliance, as the FCRA authorities monitor not just receipt and use of funds but also income generated from those funds.
Under the Foreign Contribution Regulation Act (FCRA), interest income earned on foreign contribution (FC) funds kept in a designated bank account is generally treated as deemed foreign contribution.
This interest is not a voluntary contribution but income arising out of foreign contribution.
Reporting in Form 10B (FCRA Annual Return):
Form 10B requires detailed reporting of receipt and utilization of foreign contribution.
The form includes sections for:
Foreign Contribution received
Utilization of Foreign Contribution
Income earned from foreign contribution
Where to Report Interest Income in Form 10B?
Clause 6 (Schedule 1): Details of interest or other income earned from foreign contribution.
In the Income & Expenditure Statement or Utilization Report section, there is usually a line or clause to report interest income earned on foreign contribution separately.
If no specific clause appears labeled “interest income,” it should be disclosed under the “Income earned from Foreign Contribution” or a similar head as per the instructions.
Is Disclosure Mandatory?
Yes, the interest income earned from foreign contribution must be disclosed in Form 10B.
This is important for transparency and compliance, as the FCRA authorities monitor not just receipt and use of funds but also income generated from those funds.
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