Prohibited Persons |
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Association allowed by approval |
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Foreign Contribution (Regulation) Act, 2010 (FCRA) came into effect from May 1, 2011. This Act was created to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto. The main focus of the this Act is to make sure that the foreign contribution and foreign hospitality are not used to influence electoral politics, public servants, judges and individuals working in the important locations of nationwide life such as reporters, printers and publishers of newspapers and so on.
The Act, specifically prohibits certain persons from accepting any foreign contribution in any form from outside the territories of India While there are certain associations which are allowed foreign contribution subject to the approval of the Central Government. Following is the flow chart to better understand who are allowed to accept Foreign Contribution and who all are prohibited from accepting the same:
Prohibited Persons |
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Association allowed by approval |
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Section -11 of the Act, talks about the approval for accepting foreign contribution. It says that organizations who are working for definite cultural, social, economic, educational or religious programs (viz. NGOs, Trust, Societies), before accepting any foreign contributions shall have to obtain a certificate of registration from the Central Government under the Act.
A person can either seek registration from the Central Government for accepting foreign contribution or if not registered can obtain prior permission which will be valid for the specific purpose for which it is obtained and from the specific source.
A certificate of registration can be obtained by the Central Government by filling an application for FCRA Registration or FCRA Prior Permission, as the case may be, in E-Form FC-3 along with supporting documents and prescribed fees.
Those who are applying for FC3(FCRA registration or FCRA Prior Permission) are required to register with Darpan Portal of Niti Aayog to obtain Darpan ID by filing up certain details of the entity and its members.
An exclusive FC A/c is required to be opened which shall be exclusively for the purpose of accepting foreign contribution. the Bank with which such account needs to be opened should be a specifically PFMS integrated bank who are eligible for opening of such accounts. List of banks integrated with PFMS is available at https://fcraonline.nic.in/fc_bank_list.aspx.
Once all the documents and information have been collected, the next step is to file the E-Form FC-3. Fees is required to be paid online while submitting the form (which is INR 2,000/- for registration and INR 1,000/- for prior permission)
after submitting the form, the Central Government scrutinizes the same and if found all the documents in order and if satisfied by the information provided by the association, Certificate of Registration is granted to the association after which the association can accept the foreign contribution through the FC Bank Account opened for the same.
Every association accepting foreign contribution who have obtained certificate of registration under the Act, are required to file Annual Returns online for every financial year within a period of nine months from the closure of the year i.e. by 31st December each year, in E-Form FC-4 till the amount of foreign contribution is fully utilized.
Any Person receiving foreign contribution in excess of INR 100,000/- or equivalent thereto in a financial year from any of his relatives, shall inform the Central Government in E-Form FC-1 within 30 days from the date of receipt of such contribution.
Any Person who receives any foreign contribution in the form of Articles or by way of securities are also required to inform the Central Government in E-Form FC-1 within 30 days from the date of receipt of such contribution.
Foreign contribution received by a candidate for election, shall also be furnished in E-Form FC-1 within 45 days from the date on which he is duly nominated as a candidate for election.
Such permission shall be taken by filling up E-Form FC-2 atleast 15 days before the proposed date of outward journey.