Hi.
I have a question regarding carry forward of a FCRA money. My question is below.
Can we carry forward the leftover program cost (out of 80% of the total received money) in the next financial year. For how many such financial year we can carry forward it?
E.g. If the project is for 2.5 years and organisation received all the money in first tranch at the starting of the project. It covers 3 financial years and not necessarily utilise 85% of total budget in the same year. Can we carry forward those funds for subsequent FY.
There is no maximum period for which FC funds for a project can be carried forward, it will depend on the project duration. Only unutilized admin cost of the 20% admin ceiling can be carried forward and utilized in next year. For prior permission, now funds can be utilized within 4 years for a particular project.
Now 85% utilizations is at the organization level which includes both local and FC funds as income. Follow the provisions for deemed application or accumulation as may be opted by you for utilization of this overall carry forward. Hope it clarifies.
CS Sharad Bhargava