Introduction - FCRA - Ready Reckoner - FEMA

Introduction Introduction The Foreign Contribution (Regulation) Act, 2010, read with the Foreign Contribution (Regulation) Rules, 2011 and other notification and orders, issued thereunder from time to time regulates the flow of foreign contributions into India and ensures that such contributions do not adversely affect national security. Administered by The FCRA is administered by Ministry of Home Affairs. History of FCRA Act The Foreign Contribution (Regulation) Act, first time introduced in in India 1976. Thereafter The Foreign Contribution (Regulation) Act, 2010 was amended in 2010, with effect from 01-05-2011. The Foreign Contribution (Regulation) Act, 2010 was again amended through the Foreign contribution (Regulation) Amendment Act, 2020 with effect from 28th September, 2020. Extent, application and commencement [ Section 1 of FCRA, 2010 ] As per Section 1(2) of FCRA 2010, the provisions of the Act shall apply to: whole of India , citizens of India outside India (the act is applicable to any citizen of Indian whether he is in Indian or outside India. However, the act is not applicable to a foreigner while outside India); and associate branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India. Note:- The act is applicable to any citizen of India whether he is in Indian or Outside India. The act not applicable to a foreigner while outside India. Indian Passport holder would be continue to be treated as a local source, irrespective of stay outside India and outside overview of FCRA whereas a person origin holding foreign passport will be considered a foreign source and FCRA apply. As per section 1(3) of the FCRA, 2010 , the Central Government has appointed the 1st day of May, 2011 as the date on which the provisions of the said Act would come into force. Different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.