What is Foreign Contribution Regulation Act and how does it control donations?
The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security. … Registered associations can receive foreign contribution for social, educational, religious, economic and cultural purposes. Filing of annual returns, on the lines of Income Tax, is compulsory.
What is foreign contribution under FCRA?
Q. 3 Section 2(c)(i) of repealed FCRA, 1976 inter alia defined foreign contribution as the donation, delivery or transfer made by any foreign source of any article, not given to a person as a gift for personal use, if the market value, in India, of such article exceeds one thousand rupees.
What is foreign contribution Regulation Amendment Act?
The Foreign Contribution (Regulation) Amendment Bill, 2020 was introduced in Lok Sabha on September 20, 2020. … The Act regulates the acceptance and utilisation of foreign contribution by individuals, associations and companies.
Why is FCRA needed?
FCRA, 2010 has been enacted by the Parliament to consolidate the law 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 …
Who needs FCRA?
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.
Who Cannot receive foreign contributions as FCRA?
As defined in Section 3(1) of FCRA, 2010, foreign Page 4 contribution cannot be accepted by any: (a) a candidate for election; (b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; (c) Judge, government servant or employee of any Corporation or any other body …
Who can receive foreign contribution?
(1) Every person who has been granted a certificate or given prior permission under section 12 shall receive foreign contribution in a single account only through such one of the branches of a bank as he may specify in his application for grant of certificate: Provided that such person may open one or more accounts in …
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.
Is FCRA compulsory?
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 long does it take to get FCRA?
The Ministry of Home Affairs (MHA) informed the Delhi High Court on Thursday that it would release authorisation certificates to operationalise the FCRA (Foreign Contribution [Regulation] Act) bank accounts of non-government organisations (NGOs) within seven days of receiving a request.
Who regulates Foreign Contribution Regulation Act?
The Congress government accordingly enacted the Foreign Contribution (Regulation) Act in 1976, to create a mechanism, to regulate the acceptance and utilisation of foreign contribution or hospitality in India.