[Inpycon] Receiving funds from foreign sponsors

[॥ स्वक्ष ॥]

On Mon, Mar 14, 2011 at 04:15, Sreekanth S Rameshaiah <sree at mahiti.org> wrote:
> under FCRA. It would be best if we get them to pay either the organizers
> (Pune team in this case, through any of their registered commercial
> entities) directly

IIUC, those organizers (companies/commercial entity) are liable to pay
tax for any/all amounts thus received by them, unless they have a good
explanation for the fund transfer. I am not aware if a commercial
entity can explain it away with "....was just holding the money for
IPSS". Your accountant is the best guide in this case.

Fwiw, donations to IPSS would be exempt from tax under section 80G of
the Income Tax Act only if the society is granted or applies for the
same: <http://incometaxindia.gov.in/Acts/INCOME%20TAX%20ACT/80g.asp> .
That said, the Indian tax exemption is not useful for foreign
nationals as it may not be valid in their country.

</zero paise worth>
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