Foreign contribution regulation act
Written by gkkedia Dt. February 27th, 2023
WHAT IS FOREIGN CONTRIBUTION REGULATION ACT
The Central Government via notification dated July 01, 2022 has introduced Foreign Contribution (Regulation) Amendment Rules, 2022 (“The Amendment Rules 2022”) to amend the Foreign Contribution (Regulation) Rules, 2011 (“Rules”) under the Foreign Contribution (Regulation) Act, 2010 (“Act”). The Amendment Rules 2022 are effective from July 01, 2022. then, Foreign Contribution refers to the charity or transfer of any currency or security or any composition by a foreign source, defined under the Act.
What is the purpose of FCRA, 2022
FCRA, 2022 has been ordered by the Parliament to consolidate the law to manage the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to ban acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.
Amendment Rules 2022 are as follows:
a. Increase in threshold limit for intimating receipt of Foreign Contribution The Amendment Rules
2022 has increased the edge for intimating the Central Government regarding receipt of foreign contribution in a
financial year, by an individual from any of his foreign relatives, from Rs. 1 lakh to
Rs. 10 lakhs. Accordingly, an Indian can now receive foreign contribution from a foreign relative upto
Rs. 10 lakhs, without intimating the authorities regarding the identical.
b. Increase within the timeline for reporting the receipt of Foreign Contribution The Amendment
Rules 2022 has increased the deadline for intimating the receipt of foreign contribution from foreign relatives
in Form FC-1 from 30 days to three months.
c. Increase within the timeline for reporting the opening an FCRA bank account The Rules provides
that an organization making FCRA registration or taking prior permission should have an FCRA Bank account. The
Amendment Rules 2022 has increased the deadline for intimating Secretary, Ministry of Home Affairs, regarding
the opening of FCRA Bank account in Form 6D from 15 days to 45 days. The said timeline has been increased in
both cases i.e. for FCRA registration or FCRA prior permission.
d. Removal of requirement for intimating quarterly receipt of foreign contribution on official website or
FCRA website Previously, the Rule necessitated that an individual receiving foreign contribution in a
quarter of the financial year was required to place details of foreign contribution received on its official
website or on the website as specified by the Central Government, within fifteen days following the final day of
the quarter in which it has been received. This requirement has been removed via the Amendment Rules 2022.
e. Increase in timeline for Intimation of Changes under Rule 17A of Rules The Rule provides that
any person who has been granted a certificate of registration or prior permission shall intimate the following
changes in the prescribed form electronically within 15 days of such change.
|FORM NO||CHANGES TO BE INTIMATED|
|FC-6A||Change of name of the association and/ or its address within the State|
|FC-6B||Change of nature, points and objects and enrollment with local/relevant authorities|
|FC-6C||Change of designated bank/ branch/ bank account number of designated Foreign contribution account|
|FC-6D||Change of bank and/or branch of the bank for the purpose of utilising the foreign contribution after it has been entered|
|FC-6E||Change in office association or key functionaries or members mentioned in the supplication for permit of enrollment or previous permission or renewal of registration|
Who can receive foreign contribution?
Any “Person” can receive foreign contribution subject to following conditions:-
• a) It should have a particular societal, economic, educational, religious or social programme.
• b) It should acquire the FCRA registration/previous authorisation from the Central Government
• c) It should not be prohibited under Section 3 of FCRA, 2010.
Q.3 Who cannot receive foreign contribution?
As defined in Section 3(1) of FCRA, 2010, the following are for bidden to receive foreign contribution:
• (a) applicant for election;
• (b) equivalent, columnist, cartoonist, editor, possessor, printer or publisher of a registered newspaper;
The summary information herein is based on announcement No. G.S.R. 506(E) dated July 01, 2022 issued by
Ministry of Home Affairs. While the knowledge is believed to be accurate to the finest of our knowledge, we don’t
make any representations or guaranties, express or intimate, on the perfection or absoluteness of this
information. Anthology should conduct and depend upon their own examination and analysis and are advised to seek
their own professional advice. This note isn’t an suggestion, invitation, advice or appeal of any kind. We accept
no responsibility for any mistakes it may contain, whether caused by negligence or else or for any loss,
howsoever caused or sustained, by the one who relies upon it.
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