हिंदी समाचार पढ़े
Expand
O.P. Jindal Global University
 
Home / Articles / All about Foreign Contribution (Regulation) Act, 2010 By Sakshi Rewaria

All about Foreign Contribution (Regulation) Act, 2010 By Sakshi Rewaria

December 26,2018:

The Author, Sakshi Rewaria is a student of 4th Year, BA.LLB (H), Amity Law School,Delhi. She is currently interning with LatestLaws.com.

Q1. What was the primary purpose of regulating the foreign contributions?

Ans. The FCRA was enacted with the primary purpose of regulating the inflow of foreign contributions and ensuring that the received foreign contributions are not utilized for purposes other than those specified under the legislation. All charitable organizations in India receiving foreign contributions come under the purview of this Act.

Q2. What is the Legal Objective of the Act?

  1. To regulate the acceptance and utilisation of FC/donations or foreign hospitality by certain individuals or associations or companies; and
  2. To prohibit acceptance and qutilisation of FC/donations or foreign hospitality for any activities detrimental to the national interestand matters connected thereto.

Q3. What is meant by a Foreign source under the act?

As per Section 2(1) (j) of FCRA, foreign source (Basically a source outside India from where the contribution is received) includes:-

  • The government of any foreign ‘country’ or ‘territory’ and its agency(s);
  • Any international agency(not being the United Nations or any of its specialized agencies)
  • a foreign company;
  • a corporation, not being a foreign company, incorporated in a foreign country or territory;
  • a multi-national corporation as per clause (g)(iv);
  • a company within the meaning of the Companies Act, 1956 or Companies Act, 2013 and more than one-half of the nominal value of its share capital is held, either singly or in the aggregate by any of the following;
  • the Government of a foreign country or territory;
  • the citizens of a foreign country or territory;
  • corporations incorporated in a foreign country or territory;
  • trusts, societies or other associations of individuals (whether incorporated or not), formed or registered in a foreign country or territory;
  • Foreign company;
  • a trade union in any foreign country or territory, whether or not registered in such foreign country or territory;
  • a foreign trust or a foreign foundation, by whatever name called, or such trust or foundation mainly financed by a foreign country or territory;
  • a society, club or other association or individuals formed or registered outside India;
  • a citizen of a foreign country

Q4. What is meant by “foreign contributions” in the act?

Ans. “Foreign Contribution” is defined Section 2(1)(h) of FCRA as a donation, delivery or transfer made by a foreign source of:

  1. any article (unless given to an individual for personal use), the value of which ought not to exceed Rs. 25,000/-;
  2. currency, foreign or Indian, or
  • foreign securities including all foreign debentures, bonds, shares, stocks and similar instruments of credit. Any income or interest generated from such contributions is also treated as a foreign contribution under the FCRA.

Q5. On whom does the act applies?

Ans. It Applies to whole of India including the following:

  • Citizens of India outside India;
  • Foreign Branches and Subsidiaries of ‘Body Corporates registered in India’.
  • However, not applies to a company registered under Companies Act, 1956/2013 whose more than half of nominal capital is held by foreign company or a foreign source.

Q6. Is there any Registration / Prior permission?

Ans. The organizations having a definite cultural, economic, educational, religious or social programme are entitled to accept foreign contributions under the FCRA. Such contributions may be accepted only with the approval of the Government of India, through the Ministry of Home Affairs.

In order to be eligible to receive the foreign contributions, an organization may seek prior approval either each time the entity is to receive contributions or by obtaining a one-time long term registration, which is valid for a period of 5 years. In the latter case, the permission needs to be renewed by applying at least 6 months prior to the date of expiry of the said permission. It may be noted that while not stipulated in the FCRA, it is general practice that in order to be eligible to make a long term application, the applicant needs to be in existence for a period of 3 years. Therefore, in the interim, it is often seen that organizations apply for the one time permission, commonly referred to as “Prior Permission”.

Q7. How is the fun to be utilized?

Ans. Upon obtaining registration/prior permission, the organization is required to open and maintain a bank account exclusively for the receipt and utilization of foreign contributions under FCRA. All transactions related to foreign contributions must be executed only from the aforesaid bank account. In addition, a separate set of accounts and records is required to be maintained, exclusively for foreign contributions received and utilized.

FCRA mandates that foreign contributions should be utilized only for the purpose for which they were received. It also imposes restrictions on the transfer of contributions. A person is prohibited from transferring contributions to any other person, unless such transferee is authorized to receive foreign contributions.

 Q8Is there any reporting requirements?

One of the most important reporting requirements that is often overlooked by organizations, is the submission of annual returns. Every organization is required to submit the annual returns to the Central Government within 9 months from the closure of the relevant financial year. This return has to include the details of the contributions received, source and manner in which it was received, purpose for which it was received and the manner of usage of the contributions.

Q9. What are the necessary details to be furnished?

Ans. Details to be furnished to Department and Website requirements:

  • Organisations receiving FC shall upload Audited Accounts on official website within 30 days.
  • Reporting of receiving of FC within 7 daysat its own website or govt. website.
  • Details of ‘Social Media Accounts’‘Association Profile’, bank account details, ‘bio data’s of trustees’and ‘whether ‘office bearers are part of other NGO’s’ to be given to department.
  • Any foreignerassociated with an NGO, who is visiting India, will have to furnish his/her details with the Foreigners Regional Registration Office (FRRO), spelling out the purpose and dates of the visits.
  • List out the activities and declarations on website.
  • Filling of online tax returns.

Q10. Which transactions fall outside the perview of the act?

Persons to whom section 3 shall not apply .—

  • by way of salary, wages or other remuneration due to him or to any group of persons working under him, from any foreign source or by way of payment in the ordinary course of business transacted in India by such foreign source; or
  • by way of payment, in the course of international trade or commerce, or in the ordinary course of business transacted by him outside India; or
  • as an agent of a foreign source in relation to any transaction made by such foreign source with the Central Government or State Government; or
  • by way of a gift or presentation made to him as a member of any Indian delegation, provided that such gift or present was accepted in accordance with the rules made by the Central Government with regard to the acceptance or retention of such gift or presentation; or
  • from his relative; or
  • by way of remittance received, in the ordinary course of business through any official channel, post-office, or any authorised person in foreign exchange under the Foreign Exchange Management Act, 1999 (42 of 1999); or
  • by way of any scholarship, stipend or any payment of like nature:
Facebook Comments

 
Related tags :
 

TOI

Hindu Hindu TOI Four Pillars of Democracy Four Pillars of Democracy             by Satish

TOI

Hindu

Pakistan Democracy Pakistan Democracy Tax Reforms    by Hindu Tax Reforms by Hindu

Hindu

TOI Job Hazards Acheche DIn Acheche Din     pic by sify Hindu Humour @ Latest Laws Achhey Din Humour @ Latest Laws: Achhey Din Demonitisation Diaries 1 Demonitisation Diaries 1                                  pic by sify   Demonitisation Diaries Demonitisation Diaries                                                       by sify

Hindu

If India takes One Step, we will take Two by Satish If India takes One Step, we will take Two ...................by Satish Belts are for Dogs Belts are for Dogs State of Affairs Women Safety: State of Affairs             pic by mangal

TOI

TOI Soaring of Oil Prices pic by indiaone Hindu Time to straighten up Time to straighten up                pic by TOI

Hindu

Demonitisation Diaries 2 Demonitisation Diaries 2  pic by sify

TOI

Cartoon

pinterest

Hindu

TOI

UIDAI Leaks UIDAI Leaks

Hindu Hindu

TOI

Hindu Hindu Hindu Let Justice Be Let Justice Be TOI

TOI

[caption id="attachment_97467" align="alignleft" width="621"]Humour with Latest Laws Humour with Latest Laws[/caption] America First Walk Your own Talk NPA Hurts Public Sector Banks NPA Hurts Public Sector Banks Donald Trump’s immigration ban Donald Trump’s immigration ban State of Two Nations State of Two Nations               pic by sandeep Pic by Hindu Women Empowerment and Sports Women Empowerment and Sports

Hindu

TOI

Lawyers Bearing the Burden Literally Lawyers Bearing the Burden Literally pic by OMG 150425_-_farmers_a_2384764f

Hindu

Alligator vs Litigator Alligator vs Litigator

...as an eminent lawyer you ought to know that your action tantamount to, under Section B, sub-section G.VIX, read along with I.P.C. (A) XI (B), notwithstanding...                                        TOI

ALL_1_Theme_01A_24_2383617g

Hindu

Auto Driver thrashed for no fault Auto Driver thrashed for no fault,                  source oneindia TOI

IBN IBN

TOI

Hindu

Hindu

Delivery Boy Delivery Boy                    by Satish Painting India Saffron Painting India Saffron Netas in Election mode Netas in Election mode

Hindu Hindu

Hindu

Hindu

TOI Missing the Point Missing the Point pic by english blog Hindu State of JudiciaryState of Judiciary by Sandeep Adhwaryu of TOI
Download our App
ios icon
android icon
 
 
 

Check Also

Labour Reforms

The Tragic Status Quo of Unorganised Labour Sector in India By Mohit Tanwar, Aman Agnihotri & Dev Sareen

March 23,2019: The Authors of the Article, Mohit Tanwar[1], Aman Agnihotri[2] & Dev Sareen[3] are students of University School of Law and Legal Studies,GGSIPU, New Delhi. The Tragic Status Quo of Unorganised Labour Sector in India By  Mohit Tanwar, Aman Agnihotri & ...

Leave a Reply

Your email address will not be published. Required fields are marked *