Foreign Contribution Regulation Act "FCRA" Compliances

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..... Foreign Contribution Regulation Act "FCRA" Compliances
By: - Rajeev Jain
FEMA - Foreign Exchange Management
Dated:- 31-3-2023

The application compliances towards donation received under FCRA, 2010 is given as under: (Assumes that registration and other compliances are completed in the order) * FCRA Compliances includes Annual return in Form FC-4 along with statement of receipt .....

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..... and payment account & balance sheet duly certified by CA shall be submitted annually online by 31st of Dec every year. * Records & Proper books of account shall be maintained * Even if there is no utilization or receipt of Foreign contribution, then also required to submission of nil FCRA return is Compulsory for proper compliance under FCRA. * FCRA Compliance are mandatory in nature & any v .....

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..... iolation thereof may lead to Imprisonment or penalty or both as per the provisions of the FCRA act. From Bank's Point of View Banks are needed to report 2 kinds of transactions to Govt. Below Main Online FCRA Forms are needed to be filed under FCRA S. No. Kind of FCRA Form Filing Due Date Nature Purpose 1- FC-1 (Part-D) Within 45 days of being nominated Intimation If Any Ele .....

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..... ction Candidate has received any Foreign Contribution during 180 days prior to being nominated. There is no minimum amount limit. (Election candidates are prohibited of taking any Foreign Contribution) 2- Form FC- 1 (Part-B) 31st Dec in the Next year end of the year Intimation Providing information about Securities received during the year 3- FC-1 (Part-B) 31st Dec in next year e .....

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..... nd of the year Intimation Providing information about AOA received during the year 4- Form FC- 1 (Part-A) Within 30 days of receipt Intimation For informing the Govt about receiving large gifts from relatives (Who are Foreign Citizen). This applies to all individuals and HUFs. The cut-off is INR 1,00,000/- in 1 FY. (Person has to file this intimation for each receipt after crossing .....

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..... INR 1,00,000/- during the FY) 5- FC-2 14 days in advance Permission Persons holding public office should apply in form FC-2 before accepting foreign hospitality. There is no lower cut- off, though a dinner invitation or a lift is exempt. 6- Form FC- 3 (Part - B) Not applicable (Normally takes 3 to 6 months to get Prior permission) Permission Persons who cannot get FCRA registrati .....

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..... on should apply for prior- permission. (Prior permission is linked to specific project of NGOs and for a specified sum of Foreign Contribution. Via Foreign contribution may be received in installments) 7- FC-3 (Part - A) Not applicable (Normally takes 4 to 6 months to get registered) Permission Persons who want to accept foreign contribution regularly should apply in form FC-3 for regi .....

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..... stration. (Normally NGOs having a proven track record of 3 years & have spent INR 10 Lakhs or more for the object of the trust) 8- Form FC- 3 (Part - C) Ideally 5-6 months before expiry Permission The FCRA registration is valid for Five Years only so need to apply for renewal in FC -3 Part C 9- FC-5 Before transferring such contribution Permission Any FCRA registered person w .....

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..... ho intends to transfer foreign contribution to any unregistered person. 10- FORM FC-4 (Includes Auditor's report) 31st Dec Following the end of the year. Annual Return Form FC-6 is an annual report on how much foreign contribution has been received and used during the financial year. This includes contribution in money as well as in kind.- To be filed by FCRA registered person or having .....

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..... prior permission persons 11- FC-6 Within 15 days of change Intimation Any FCRA registered person who wants to change Association name or Designated bank account or Utilization Bank Account or more than 50% of Key members. We hope the above compliances are useful for reader.
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