How to deposit proportionate TDS refund from non FCRA account to FCRA main account? What documentation is required to establish the source of the funds?
MHA has advised that for consolidated refund of TDS in non FCRA account, the FCRA share of TDS can be transferred to FCRA account and will not be considered violation of Section 17 of FCRA which prohibits mixing of local and FC funds. TDS deduction would be considered as utilisation and refund of such TDS would be reported as Other Income in clause 2 of Annual Report in FC-4.
Public Notice dated 31.12.2024 attached. Please see our post dated 6th Jan 2025 for more details on the subject.
CS Sharad Bhargava
