Can prohibit a person or an organization from accepting foreign contribution under the Foreign Contribution Regulation Act 2010?

Who Cannot accept foreign contributions as per the Act?

As defined in Section 3(1) of FCRA, 2010, foreign Page 4 contribution cannot be accepted by any: (a) a candidate for election; (b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; (c) Judge, government servant or employee of any Corporation or any other body …

Who can accept foreign contribution under the foreign contribution Act 2010?

(1) Save as otherwise provided in this Act, no person having a definite cultural, economic, educational, religious or social programme shall accept foreign contribution unless such person obtains a certificate of registration from the Central Government: Provided that any association registered with the Central …

What is foreign contribution Regulation Act and how does it control donations?

The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security. … Registered associations can receive foreign contribution for social, educational, religious, economic and cultural purposes. Filing of annual returns, on the lines of Income Tax, is compulsory.

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Can Trust accept foreign donations without FCRA?

Unless one has FCRA Prior Permission or FCRA Registration, one cannot accept donation (in any currency including INR, even from NRO or NRE acct)/ contribution in kind exceeding Rs 25,000 (excluding personal gifts)/ hospitality/ CSR support—from a foreign source.

Can Section 8 companies receive contributions from overseas or non residents?

There are special requirements to be complied with under the Foreign Contribution and Regulation Act, 2010 before a Section 8 Company can receive any contributions or donations from overseas/outside India from non-residents. The provisions of the said Act are in addition to the provisions under the Companies Act.

What is FCRA Amendment Act?

The amendments to the Foreign Contribution Regulation Act (FCRA) enacted last year that among others made it compulsory for NGOs to open a bank account in Delhi has crippled the work of many organisations who are unable to receive foreign funds. … There are 22,591 FCRA registered NGOs.

Who can receive foreign contribution?

A ‘person’, as defined in Section 2(1)(m) with the exclusion of those mentioned in Section 3 of FCRA, 2010, having a definite cultural, economic, educational, religious or social programme can receive foreign contribution after it obtains the prior permission of the Central Government, or gets itself registered with …

Who can receive foreign funds?

In 2019, MHA had amended FCRA rules where it said that even persons prohibited to receive foreign funds such as journalists, politicians, members of the judiciary “are allowed to accept foreign contribution from their relatives” if the amount does not exceed ₹1 lakh.

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Can a charitable trust accept foreign donations?

Any donation from a Non-resident Indian who is a foreign national can be received only if the recipient charitable trust or institution is registered under FCRA (Foreign Contribution Regulation Act, 2010).

Can political parties accept foreign funding Upsc?

The government has proposed an amendment with retrospective effect that will allow political parties to accept donations from overseas companies whose ownership of Indian entities is within the foreign investment limits prescribed for the sector.

Who regulates foreign contribution Regulation Act?


Act ID: 201042
Ministry: Ministry of Home Affairs
Department: Department of Internal Security
Enforcement Date: 01-05-2011
Notification: 1st May, 2011, vide notification No. S.O. 909(E), dated 29th April, 2011, see Gazette of India, Extraordinary, Part II, sec. 3(ii).

Can Indian trust accept foreign donations?

must be registered (under the Societies Registration Act, 1860 or Indian Trusts Act 1882 or section 8 of Companies Act, 2013 etc.) should submit a commitment letter from the donor indicating the amount of foreign contribution and the purpose.

What are the key rules under FCRA Act?

[(d) Any person making an application for registration under clause (a) of sub-rule (1) shall have an FCRA Account.]

Receipt of foreign contribution by way of gift from relative Yes/ No
Receipt of foreign contribution by a candidate for election Yes/ No

Is FCRA applicable to trust?

It is preferable for an FCRA applicant to be a Trust or Society or a Section 8 Company. The not-for-profit entity must have also been in existence for a minimum of three years while making the FCRA application and should not have received any foreign contribution prior to that without the Government’s approval.

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Why is FCRA needed?

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 illegal purposes. All charitable organizations in India receiving foreign contributions come under the purview of this Act.