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FCRA Account: Benefits, Cash Limits and Restrictions

Ayush , Last updated: 24 September 2024  
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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.

FCRA Account: Benefits, Cash Limits and Restrictions

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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Published by

Ayush
(Executive )
Category Income Tax   Report

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