Foreign contribution to be reported/populated in form 26AS

Issue/Justification

As per the Foreign Contribution (Regulation) Act, 2010 read with Foreign Contribution (Regulation) Rules 2011 as amended, any contribution received above the specified amount (INR 1 crore) needs to be reported by the recipient bank on behalf of assessee registered under the FCRA Act to the Central Government. Further, all the receipts along with the audited financial statements as at the end of the year is reported to the Ministry of Home affairs by the recipient (mostly NGOs) of such funds from foreign sources. As on date the same is not reported in form 26AS of such assessee. Since all the data w.r.t foreign receipts is already available with the designated bank as well as Ministry of Home Affairs, it would be really useful if the same is also covered under the scope of Statement of Financial Transaction under section 285BA. The foreign receipts of such assessee could be matched with the Income Tax Returns and any discrepancy may be scrutinized accordingly

Suggestion

In view of the fact that the data related to foreign receipts are governed by the Foreign Contribution (Regulation) Act, 2010 read with Foreign Contribution (Regulation) Rules 2011 as amended is already available with the designated banks and the Ministry of Home Affairs, it is suggested that the same may be incorporated in the Form No. 26AS and also in SFT under section 285BA. In case it is reflected in Form No.26AS, the assessee would be more cautious of his tax obligations.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

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Category : Income Tax (27874)
Type : News (13806)
Tags : Budget (1957) Budget 2018 (400) ICAI (2670)

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