Sajisankar AS 25 June 2020

query related to FCR Act 2010

whether income created by selling an asset which was bought using foreign contributions can be as foreign contribution.?

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Quick Summary

This discussion explores whether income generated from selling an asset purchased with foreign contributions is considered a foreign contribution under the FCR Act 2010. The consensus is that it depends heavily on the specific facts and circumstances surrounding the asset's acquisition and the donor's intent. Once foreign funds are remitted and accounted for, the asset is generally treated as local.

3 Replies

G.L.N. Prasad (Retired employee.) 26 June 2020

No. It all depends on facts of the asset acquired and circumstances. As I presume, you have purchased one asset, and the source of funds for purchasing is contribution from foreign sources. Now you wish to dispose the asset.

If you are individual, there may not be any problem.

But, if you are an individual, received contribution for a specific purpose and activity as NGO and acquired it under that style and now if you wish to dispose that asset, then conditions may vary.

Once the Inward remittance is accounted for in RBI Channels, it becomes local asset only.