With amendment in section 8 of the FCRA, 2010, the limit of administrative expenses is reduced from 50% to 20% of total FC funds received during the year w.e.f. 29th September 2020. The section also provides that the administrative expenses may exceed this limit of 20% with the prior approval of the Central Government. The Administrative Expenditure does not include Capital Expenditure. However, such capital expenditure should be towards advancement of charitable objectives, otherwise, it shall be treated as either investment or applied for inadmissible purposes. There are many confusions in computation of administrative expenditure. Therefore, in this issue, we have discussed the statutory provisions, how the 20% limit should be computed in the light of the word “received” used in the section, whether administrative expenditure includes capital expenditure, is separate accounting necessary for administrative expenditure as per FCRA, is administrative expenditure required to be reported to FCRA authorities, consequences of incurring administrative expenditure in excess of specified limit of 20%, can the violation pertaining to administrative expenses be compounded every year, can fund raising expenses be claimed as administrative expenses, etc. For more, please read the Ecommunique in the attachment.