FCRA
Applicability
WHO CAN RECEIVE FORIGN 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 Program Can Receive Foreign Contribution After It Obtains The Prior Permission Of The Central Government, Or Gets Itself Registered With The Central Government.
Explanation 3 Of Section 2(h) Of FCRA, 2010, The Following Is Not Covered In The Definition Of Foreign Contribution:
"Any Amount Received, By Any Person From Any Foreign Source In India, By Way Of Fee (including Fees Charged By An Educational Institution In India From Foreign Student) Or Towards The Cost In Lieu Of Goods Or Services Rendered By Such Person In The Ordinary Course Of His Business, Trade Or Commerce Whether Within India Or Outside India Or Any Contribution Received From An Agent Of A Foreign Source Towards Such Fee Or Cost Shall Be Excluded From The Definition Of Foreign Contribution Within The Meaning Of This Clause."
WHO CANNOT RECEIVE FOREIGN CONTRIBUTION?
As Defined In Section 3(1) Of FCRA, 2010, Foreign Contribution Cannot Be Accepted By Any:
a Candidate For Election;
correspondent, Columnist, Cartoonist, Editor, Owner, Printer Or Publisher Of A Registered Newspaper;
Judge, Government Servant Or Employee Of Any Corporation Or Any Other Body Controlled On Owned By The Government;
member Of Any Legislature;
political Party Or Office Bearer Thereof;
Organization Of A Political Nature As May Be Specified Under Sub- Section (1) Of Section 5 By The Central Government.
association Or Company Engaged In The Production Or Broadcast Of Audio News Or Audio Visuals Or Current Affairs Programs Through Any Electronic Mode, Or Any Other Electronic Form As Defined In Clause (r) Of Sub-section (i) Of Section 2 Of The Information Technology Act, 2000 Or Any Other Mode Of Mass Communication;
Correspondent Or Communist, Cartoonist, Editor, Owner Of The Association Or Company Referred To In Clause (g).
Explanation - In Clause (c) And Section 6, The Expression "corporation' Means A Corporation Owned Or Controlled By The Government And Includes A Government Company As Defined In Section 617 Of The Companies Act, 1956. (i) Individuals Or Associations Who Have Been Prohibited From Receiving Foreign Contribution.
FCRA Registration
ELIGIBILITY CRITERIA FOR REGISTRATION
For Grant Of Registration, The Association Should:
be Registered Under The Societies Registration Act, 1860 Or The Indian Trusts Act, 1882 Or Section 25 Of The Companies Act, 1956;
Normally Be In Existence For At Least Three Years And Has Undertaken Reasonable Activity In Its Chosen Field For The Benefit Of The Society For Which The Foreign Contribution Is Proposed To Be Utilized. For This Purpose, The Association Should Have Spent At Least Rs. 6, 00, 000 Over Last Three Years On Its Activities, Excluding Administrative Expenditure. Statement Of Income & Expenditure Duly Audited By Chartered Accountant For Last Three Years May Be Enclosed To Substantiate That It Meets The Financial Parameter.
meet The Following Conditions:-
The Person Making An Application For Registration Or Grant Of Prior Permission Under Sub-section (1),- Sec.12 (4) (a):-
is Not Fictitious Or Benami;
has Not Been Prosecuted Or Convicted For Indulging In Activities Aimed At Conversion Through Inducement Or Force, Either Directly Or Indirectly, From One Religious Faith To Another;
has Not Been Prosecuted Or Convicted For Creating Communal Tension Or Disharmony In Any Specified District Or Any Other Part Of The Country;
has Not Been Found Guilty Of Diversion Or Mis-utilisation Of Its Funds;
is Not Engaged Or Likely To Engage In Propagation Of Sedition Or Advocate Violent Methods To Achieve Its Ends;
is Not Likely To Use The Foreign Contribution For Personal Gains Or Divert It For Undesirable Purposes;
has Not Contravened Any Of The Provisions Of This Act;
has Not Been Prohibited From Accepting Foreign Contribution:
The Person And/or Any Of Its Directors Or Office Bearers Have Neither Been Convicted Under Any Law For The Time Being In Force Nor Is Any Prosecution For Any Offence Pending Against Him.
The Acceptance Of Foreign Contribution By The Association / Person Is Not Likely To Affect Pre Judicially -
the Sovereignty And Integrity Of India; Or
the Security, Strategic, Scientific Or Economic Interest Of The State; Or
the Public Interest; Or
freedom Or Fairness Of Election To Any Legislature; Or
friendly Relation With Any Foreign State; Or
harmony Between Religious, Racial, Social, Linguistic, Regional Groups, Castes Or Communities.
The Acceptance Of Foreign Contribution-
shall Not Lead To Incitement Of An Offence;
shall Not Endanger The Life Or Physical Safety Of Any Person.
APPLICABILITY OF SECRETARIAL AUDIT:-
An Application For Registration Of An Organization For Acceptance Of Foreign Contribution Shall Be Made Electronically On-line In Form FC-3, And Shall Be Followed By Forwarding The Hard Copy Of The On-line Application Duly Signed By The Chief Functionary Of The Association Together With The Required Documents:
1. Form FC-3
2. Audited Statement Of Accounts Of Past Three Years.
3. Annual Report Specifying Activities Of Past Three Years.
4. If The Association Is A Registered Trust Or Society A Certified Copy Of The Registration Certificate.
5. Copy Of The Memorandum Of Association And/or The Articles Of Association As Applicable.
6. List Of Main Objects And Definite Programmes For Which The Contribution Is To Be Accepted / Utilized.
7. Details Of Names And Addresses Of The Members Of The Executive Committee/Governing Council Etc. Of The Association.
8. Copy Of Any Prior Permission Granted To The Organization.
9. Copy Of Resolution Of Governing Body Of The Organization, Authorizing The Registration Under FCRA.
10. Copy Of Power Of Attorney Or The Resolution Of Governing Body By Which The Chief Functionary Is Authorized To Submit FC-3.
11. List Of Present Members Of The Governing Body Of The Organization And The Office Bearers.
12. Copy Of Permanent Account Number (PAN) Issued By The Income Tax Department
FCRA Return
ANNUAL RETURN
An Association Permitted To Accept Foreign Contribution Is Required Under Law To Maintain Separate Set Of Accounts And Records Exclusively For The Foreign Contribution Received And Utilized;
Submit An Annual Return, Duly Certified By A Chartered Accountant;
Giving Details Of The Receipt And Purpose- Wise Utilization Of The Foreign Contribution.
TIME PERIOD OF FILING ANNUAL RETURN
The Return Is To Be Filed For Every Financial Year (1st April To 31st March) Within A Period Of Nine Months From The Closure Of The Year I.e. By 31st December Each Year.
Submission Of A 'Nil' Return, Even If There Is No Receipt/utilization Of Foreign Contribution During The Year, Is Mandatory.
The Return Is To Be Submitted, In Prescribed Form FC - 6, Duly Accompanied With:
balance Sheet And
statement Of Receipt And Payment,
Which Is Certified By A Chartered Accountant
FCRA Registration
An NGO can receive donations just after initial registration under trust act. Section 8 of Companies Act 2013. The next milestone is to avail registration for tax exemption on the income of an NGO; it is required to obtain approval from Income tax department under section 12 A, further to attract donor, NGO prefers to get a 80 G Certificate so that contributors can avail tax benefits on the donation made to the NGO.
FCRA registration is required to receive donations outside India; The NGO is required to be registered under the provisions of the foreign contribution regulation act, 1976.
For FCNRO registration an NGO must have completed three years of operations. FCRA Registration is granted by the Ministry of Home Affairs, Govt. Of India.
Documents Required For FCRA Registration
· Copy of PAN of the NGO.
· Past 3 years Audited Balance Sheet, Income & Expenditure Account.
· Certified copy of Trust Deed/MOA.
· Detail about the current and past management of the trust.
· A Copy of certificate issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.
· Annual report of the NGO and details of work done in past 3 year.
· True copy of resolution passed by the Governing Body of the NGO.
· True copy of Undertaking from the Chief Functionary of the NGO.
Applicability
WHO CAN RECEIVE FORIGN 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 Program Can Receive Foreign Contribution After It Obtains The Prior Permission Of The Central Government, Or Gets Itself Registered With The Central Government.
Explanation 3 Of Section 2(h) Of FCRA, 2010, The Following Is Not Covered In The Definition Of Foreign Contribution:
"Any Amount Received, By Any Person From Any Foreign Source In India, By Way Of Fee (including Fees Charged By An Educational Institution In India From Foreign Student) Or Towards The Cost In Lieu Of Goods Or Services Rendered By Such Person In The Ordinary Course Of His Business, Trade Or Commerce Whether Within India Or Outside India Or Any Contribution Received From An Agent Of A Foreign Source Towards Such Fee Or Cost Shall Be Excluded From The Definition Of Foreign Contribution Within The Meaning Of This Clause."
WHO CANNOT RECEIVE FOREIGN CONTRIBUTION?
As Defined In Section 3(1) Of FCRA, 2010, Foreign Contribution Cannot Be Accepted By Any:
a Candidate For Election;
correspondent, Columnist, Cartoonist, Editor, Owner, Printer Or Publisher Of A Registered Newspaper;
Judge, Government Servant Or Employee Of Any Corporation Or Any Other Body Controlled On Owned By The Government;
member Of Any Legislature;
political Party Or Office Bearer Thereof;
Organization Of A Political Nature As May Be Specified Under Sub- Section (1) Of Section 5 By The Central Government.
association Or Company Engaged In The Production Or Broadcast Of Audio News Or Audio Visuals Or Current Affairs Programs Through Any Electronic Mode, Or Any Other Electronic Form As Defined In Clause (r) Of Sub-section (i) Of Section 2 Of The Information Technology Act, 2000 Or Any Other Mode Of Mass Communication;
Correspondent Or Communist, Cartoonist, Editor, Owner Of The Association Or Company Referred To In Clause (g).
Explanation - In Clause (c) And Section 6, The Expression "corporation' Means A Corporation Owned Or Controlled By The Government And Includes A Government Company As Defined In Section 617 Of The Companies Act, 1956. (i) Individuals Or Associations Who Have Been Prohibited From Receiving Foreign Contribution.
FCRA Registration
ELIGIBILITY CRITERIA FOR REGISTRATION
For Grant Of Registration, The Association Should:
be Registered Under The Societies Registration Act, 1860 Or The Indian Trusts Act, 1882 Or Section 25 Of The Companies Act, 1956;
Normally Be In Existence For At Least Three Years And Has Undertaken Reasonable Activity In Its Chosen Field For The Benefit Of The Society For Which The Foreign Contribution Is Proposed To Be Utilized. For This Purpose, The Association Should Have Spent At Least Rs. 6, 00, 000 Over Last Three Years On Its Activities, Excluding Administrative Expenditure. Statement Of Income & Expenditure Duly Audited By Chartered Accountant For Last Three Years May Be Enclosed To Substantiate That It Meets The Financial Parameter.
meet The Following Conditions:-
The Person Making An Application For Registration Or Grant Of Prior Permission Under Sub-section (1),- Sec.12 (4) (a):-
is Not Fictitious Or Benami;
has Not Been Prosecuted Or Convicted For Indulging In Activities Aimed At Conversion Through Inducement Or Force, Either Directly Or Indirectly, From One Religious Faith To Another;
has Not Been Prosecuted Or Convicted For Creating Communal Tension Or Disharmony In Any Specified District Or Any Other Part Of The Country;
has Not Been Found Guilty Of Diversion Or Mis-utilisation Of Its Funds;
is Not Engaged Or Likely To Engage In Propagation Of Sedition Or Advocate Violent Methods To Achieve Its Ends;
is Not Likely To Use The Foreign Contribution For Personal Gains Or Divert It For Undesirable Purposes;
has Not Contravened Any Of The Provisions Of This Act;
has Not Been Prohibited From Accepting Foreign Contribution:
The Person And/or Any Of Its Directors Or Office Bearers Have Neither Been Convicted Under Any Law For The Time Being In Force Nor Is Any Prosecution For Any Offence Pending Against Him.
The Acceptance Of Foreign Contribution By The Association / Person Is Not Likely To Affect Pre Judicially -
the Sovereignty And Integrity Of India; Or
the Security, Strategic, Scientific Or Economic Interest Of The State; Or
the Public Interest; Or
freedom Or Fairness Of Election To Any Legislature; Or
friendly Relation With Any Foreign State; Or
harmony Between Religious, Racial, Social, Linguistic, Regional Groups, Castes Or Communities.
The Acceptance Of Foreign Contribution-
shall Not Lead To Incitement Of An Offence;
shall Not Endanger The Life Or Physical Safety Of Any Person.
APPLICABILITY OF SECRETARIAL AUDIT:-
An Application For Registration Of An Organization For Acceptance Of Foreign Contribution Shall Be Made Electronically On-line In Form FC-3, And Shall Be Followed By Forwarding The Hard Copy Of The On-line Application Duly Signed By The Chief Functionary Of The Association Together With The Required Documents:
1. Form FC-3
2. Audited Statement Of Accounts Of Past Three Years.
3. Annual Report Specifying Activities Of Past Three Years.
4. If The Association Is A Registered Trust Or Society A Certified Copy Of The Registration Certificate.
5. Copy Of The Memorandum Of Association And/or The Articles Of Association As Applicable.
6. List Of Main Objects And Definite Programmes For Which The Contribution Is To Be Accepted / Utilized.
7. Details Of Names And Addresses Of The Members Of The Executive Committee/Governing Council Etc. Of The Association.
8. Copy Of Any Prior Permission Granted To The Organization.
9. Copy Of Resolution Of Governing Body Of The Organization, Authorizing The Registration Under FCRA.
10. Copy Of Power Of Attorney Or The Resolution Of Governing Body By Which The Chief Functionary Is Authorized To Submit FC-3.
11. List Of Present Members Of The Governing Body Of The Organization And The Office Bearers.
12. Copy Of Permanent Account Number (PAN) Issued By The Income Tax Department
FCRA Return
ANNUAL RETURN
An Association Permitted To Accept Foreign Contribution Is Required Under Law To Maintain Separate Set Of Accounts And Records Exclusively For The Foreign Contribution Received And Utilized;
Submit An Annual Return, Duly Certified By A Chartered Accountant;
Giving Details Of The Receipt And Purpose- Wise Utilization Of The Foreign Contribution.
TIME PERIOD OF FILING ANNUAL RETURN
The Return Is To Be Filed For Every Financial Year (1st April To 31st March) Within A Period Of Nine Months From The Closure Of The Year I.e. By 31st December Each Year.
Submission Of A 'Nil' Return, Even If There Is No Receipt/utilization Of Foreign Contribution During The Year, Is Mandatory.
The Return Is To Be Submitted, In Prescribed Form FC - 6, Duly Accompanied With:
balance Sheet And
statement Of Receipt And Payment,
Which Is Certified By A Chartered Accountant
FCRA Registration
An NGO can receive donations just after initial registration under trust act. Section 8 of Companies Act 2013. The next milestone is to avail registration for tax exemption on the income of an NGO; it is required to obtain approval from Income tax department under section 12 A, further to attract donor, NGO prefers to get a 80 G Certificate so that contributors can avail tax benefits on the donation made to the NGO.
FCRA registration is required to receive donations outside India; The NGO is required to be registered under the provisions of the foreign contribution regulation act, 1976.
For FCNRO registration an NGO must have completed three years of operations. FCRA Registration is granted by the Ministry of Home Affairs, Govt. Of India.
Documents Required For FCRA Registration
· Copy of PAN of the NGO.
· Past 3 years Audited Balance Sheet, Income & Expenditure Account.
· Certified copy of Trust Deed/MOA.
· Detail about the current and past management of the trust.
· A Copy of certificate issued by the Income Tax Authority under 80G & 12A of the Income Tax Act.
· Annual report of the NGO and details of work done in past 3 year.
· True copy of resolution passed by the Governing Body of the NGO.
· True copy of Undertaking from the Chief Functionary of the NGO.
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