Relatives living abroad can remit up to ₹10 lakh to Indians under revised FCRA rules

Under the amended rule, individuals now have 90 days to inform the government. if the amount exceeds

Under the amended rule, individuals now have 90 days to inform the government. if the amount exceeds

The Union Home Ministry has amended certain rules related to the Foreign Contribution (Regulation) Act (FCRA), allowing Indians to receive up to ₹10 lakh a year from relatives living abroad without informing the authorities. Earlier the limit was ₹1 lakh.

In a notification, the home ministry also said that if the amount exceeds, individuals will now have 90 days to inform the government instead of 30 days earlier.

In a separate notification, the home ministry “compounded” five more offenses under the FCRA instead of prosecuting organizations or individuals directly. Earlier, only seven offenses were compoundable under FCRA.

The new rules, the Foreign Contribution (Regulation) Amendment Rules, 2022, were notified by the home ministry through a gazette notification on Friday night. “In rule 6 of the Foreign Contribution (Regulation) Rules, 2011, for the words “one lakh rupees”, the words “ten lakh rupees” shall be substituted; and for the words “thirty days”, the words “three months” shall be substituted; stated in the notification.

Rule 6 deals with information on receipt of foreign money from relatives. It had earlier said that “any person who receives foreign contribution of one lakh rupees or its equivalent in a financial year from any of his relatives shall, within 30 days of the receipt of such contribution, inform the Central Government (statement of funds)”. will do”.

Similarly, by amending Rule 9, which pertains to an application for obtaining ‘registration’ or ‘prior permission’ under FCRA for receiving funds, the amended rules have allowed individuals and organizations or NGOs to know about bank accounts. I have given 45 days time to inform the Ministry of Home Affairs. (s) which are to be utilized for the use of such funds. This deadline was 30 days ago.

The Central Government has also removed the provision ‘B’ in Rule 13, which declares foreign funds including details of donors, amount received and date of receipt, etc., every quarter on its website.

Now, any person receiving foreign funds under FCRA is required to maintain an audited statement of accounts on receipts and utilization of foreign contributions including income and expenditure statements, receipts and payments accounts, and balance sheets for each financial year. have to follow. from the first day of April, within nine months from the end of the financial year on its official website or on a website specified by the Centre.

A provision where an NGO or a person receiving foreign funds was required to declare such contribution every quarter on its official website has also been done away with.

In case of bank account, name, address, target or key members of the organization receiving foreign funds, the home ministry has now given 45 days instead of the previous 15 days.

The Home Ministry had in November 2020 made the FCRA rules stricter, making it clear that NGOs that are not directly associated with any political party but are involved in political action such as bandhs, strikes or road jams, They will be considered to be of a political nature if they participate in it. Active politics or party politics.

As per the law, all NGOs receiving funds are required to register under the FCRA.

In a separate notification, the home ministry made five more offenses “compoundable” under the FCRA, making 12 such offenses compoundable instead of directly prosecuting organizations or individuals.

FCRA violations which have now become compoundable include failure to inform about receipt of foreign funds, opening of bank accounts, failure to provide information on the website, etc.

Earlier, the offenses relating to accepting hospitality from a foreign entity without any notice, payment of foreign money for administrative use in excess of permissible limit, receiving money in an account other than the specified account for foreign money and four others were compoundable.

Amount of fine ranging from ₹10,000 to ₹1 lakh or 5% of foreign funds, whichever is higher.