Tax Rules for UAE NRIs Donating to Indian NGOs Explained

NRIs residing in the UAE can donate to Indian NGOs without triggering Foreign Contribution Regulation Act (FCRA) compliance, as they are not classified as “foreign sources.” Donations must be made through regular banking channels. If the NGO is registered under Section 80G of the Income Tax Act, donors can claim tax deductions. The NGO will issue a valid receipt and Form 10BE certificate for this purpose.
For NRIs who have acquired foreign citizenship, donations are considered foreign contributions under FCRA. Such contributions must be routed through designated FCRA accounts. Tax obligations for NRIs depend on their residential status in India, determined by their stay duration. Global income remains taxable for residents, with foreign tax credits available.
Under FEMA, individuals staying in India for over 182 days are considered residents, regardless of citizenship. They must report foreign income and assets in their tax returns. NRIs should ensure proper documentation and compliance when donating to Indian NGOs, especially if they hold foreign citizenship. Obtaining an OCI card is advisable for those who have given up Indian citizenship but continue to reside in India.