Foreign contribution regulation Act 1976 or FCRA is a law of government of India which regulates receipt of foreign contributions or aid from outside India to India territories. This is essential to ensure that such aid does not effect political or any other situation in India.
What is FCRA India law?
FCRA is the cornerstone law that regulates how nonprofits in India can receive foreign funding, including from U.S.-based foundations and corporations. The new law took effect September 29, 2020.
What are the rules of FCRA?
The MHA notice added that all NGOs and associations who have been granted a certificate of registration or prior permission by the central government “shall not receive any foreign contributions in any account other than the designated FCRA account opened in SBI NDMB from the date of opening such account or July 1, …
Who is required to file FCRA?
Must have spent a minimum of Rs. 10,00,000 in the last 3 years towards achieving its objectives (Excludes administrative expenditure). Must submit the copies of the financial statements of the last 3 years that are duly audited by qualified Chartered Accountants.
What is FCRA approval?
Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donation from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. Such a registration under the Foreign Contribution Regulation Act, 2010 is called a FCRA registration.
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.
Is FCRA mandatory?
The Parliament amended the FCRA, 2010 in September, 2020. One of the major amendments mandates compulsory opening of an FCRA account in the State Bank of India (SBI), Main Branch located at Sansad Marg, New Delhi by each NGO/association registered or given prior permission under FCRA 2010.
How can I open FCRA account in India?
If you are maintaining FCRA account with another bank, you can approach nearest SBI Branch or any branch of SBI of your choice for opening of Designated FCRA Account at NDMB and submit Account Opening Form (AOF) along with required documents including KYC documents (Scanned copy of AOF along with KYC checklist is …
How do I get FCRA funds?
What are the documents required to apply?
- Registration Certificate of Association.
- Memorandum of Association/Trust Deed.
- Commitment Letter from the donor organization and agreement.
- Project Report for which FC will be received.
- Audited statement of accounts of past three years.
- Activities Report of past 3 years.
Can cash in Indian currency be deposited in FCRA account?
Therefore, FC in INR from any foreign source, including foreigners of Indian origin having OCI/PIO card, are to be treated as FC under FCRA and should be allowed to be deposited in the designated FC A/c.
How do I file a FCRA return?
Instructions for online filing of annual account in FC-6 Form
- Instructions for online filing of annual account in FC-6 Form.
- After successful registration, applicant/user can login to the ‘FCRA Online.
- Services’ and select the option for the type of application to be filed, and click.
What is the fees for FCRA registration?
An application made for the grant of prior permission is supposed to be accompanied by a fee of Rs. 1000/- while an application made for the grant of the registration shall be accompanied by a fee of 2000/-.
Is FCRA applicable to companies?
Individuals, HUF, association or a company registered under Section 8 of the Companies Act, 2013, qualify for this provision; provided the following conditions are satisfied: The particular individual or entity is registered with the FCRA by obtaining prior permission from the Central Government. …
Who is covered under FCRA?
The Act (Title VI of the Consumer Credit Protection Act) protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act.
WHO issues FCRA certificate?
On their positive opinions, the FCRA Section of the Ministry issues the Certification of Registration to the candidate organization. It is necessary to receive foreign contribution just in one designated bank account.
Can we withdraw cash from FCRA account?
However, as per the Do and Don’t’s issued by the FCRA department for the FCRA Registered associations, it has been noted that the Cash Expenses and withdrawals is limited uptoRs. … 2,000 in a single day.