As an NGO can we use our funds to reimburse only foreign travel by an employee for official purpose?

General
1

As an NGO can we use our funds to reimburse only foreign travel by an employee for official purpose. We do not have FCRA.

2

Thanks for your query. Funds can be used to reimburse foreign travel cost of NGO staff provided the income is applied for charitable purpose of the NGO and the benefits should accrue within India. If benefit of such application accrues outside India, such income will be treated as Specified Income and subject to tax @30%. In addition, please document such activity carefully such that the benefit within India gets appropriately justified.

CS Sharad Bhargava