Index of Questions

Questions

Section I: INTRODUCTION TO FCRA, 2010

Question 1:   What is the purpose of FCRA, 2010?

Question 2:   When did FCRA, 2010 come into force?

Question 3:   When did FCRR, 2011 come into force?

Question 4:   What is the status of the previous FCRA, 1976?

Question 5:   Whether there has been any amendment to FCRA, 2010 or FCRR, 2011 after their coming into force?

Question 6:   Have there been other notifications/orders under the Act and the Rules?

Question 7:   To whom FCRA, 2010 is applicable?

Section II: FOREIGN CONTRIBUTION ‒DEFINITION & CLARIFICATION

Question 8:   What is foreign contribution?

Question 9:   Could foreign contribution be received in Indian Rupee?

Question 10:   Whether donation given by Non-Resident Indians (NRIs) holding valid Indian Passport, i.e., Indian citizenship, is treated as foreign contribution?

Question 11:   Whether donation given by an individual of Indian origin and having foreign nationality, i.e., PIO/OCI, is treated as foreign contribution?

Question 12:   Whether any contribution, which originated from a foreign source and has been received indirectly by a recipient to whom FCRA, 2010 applies, will be treated as foreign contribution?

Question 13:   Will interest or any other income earned from foreign contribution be considered foreign contribution?

Question 14:   Whether earnings from foreign client(s) by a person in lieu of goods sold or services rendered by it are treated as foreign contribution?

Question 15:   Whether infusion of foreign share capital in a company registered under section 25 of the Companies Act, 1956/ section 8 of the Companies Act, 2013 attracts the provisions of FCRA, 2010 and treated as foreign contribution?

Question 16:   Whether foreign contribution can be made out of Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account by an Overseas Citizen of India (OCI) not holding Indian passport?

Question 17:   Whether donation from an individual having dual citizenship of India and another country, say USA, would be treated as FC?

Question 18:   An Indian living in the U.S.A., who has obtained Green Card there, sends donation in foreign currency through normal Banking channels to an Association in India.  Whether such donation will be treated as foreign contribution?

Question 19:   An Indian living in the U.S.A., who has obtained Green Card there, sends money to his/her parents in India in foreign currency through normal Banking channels.  Whether any donation, out of those remittances, by the parents to an Association in India will be treated as foreign contribution?

Question 20:   An Indian who has acquired foreign nationality living in the USA, i.e., a citizen of USA and OCI cardholder, sends money to his/her parents in India in foreign currency through normal Banking channels.  Whether any donation, out of those remittances, by the parents to an Association in India will be treated as foreign contribution?

Question 21:   When articles gifted for personal use do not amount to FC?

Question 22:   Will the fee paid by the foreign delegates/participants attending/participating in a conference/seminar etc. be treated as foreign contribution and thus require permission from FCRA angle?

Question 23:   Some temples in India charge fixed fees for conducting various Puja ceremonies and receive fees/offerings from the devotees who are foreign citizens.  Whether such charges/fees/offerings are treated as FC?

Question 24:   A foreign Foundation engages XYZ Company in India to conduct survey on agricultural/environmental data for dissemination amongst Indian farmers and pays XYZ Company its fee as service charges.  As a part of the service contract with the Foundation, XYZ Company sends SMS to farmers intimating about monsoon, soil condition etc. to help them without charging anything from the farmers.

Whether the fee received by XYZ Company from the Foundation as service charges will be treated as FC because of end utilisation of the data/information gathered on behalf of the Foundation or it will be exempt from the definition of FC as per Explanation 3 under Section 2(1)(h) of FCRA, 2010?

Question 25:   ABC Company incorporated in India is primarily engaged in trading of solar-powered LEDs and compact fluorescents procured from its overseas manufacturing group company. ABC Company offers energy and lighting solutions that are affordable and energy-efficient. As ABC Company is trading in environmentally friendly solutions for lighting through solar energy, it has been offered grants from various foreign organisations to be utilized for providing “support to operations that accelerate sustainable distribution, for example training of brand activators” and “free distribution of solar lanterns in underprivileged and rural areas”. The proposed grants will include the cost of procurement and distribution of the solar lanterns and training of brand activators etc.  The distribution may be within India or outside India. Whether such grants from foreign organisations received by ABC Company be exempt from the definition of FC as per Explanation 3 under Section 2(1)(h) of FCRA, 2010?

Question 26:   A foreign NGO is involved in charitable activities in India in healthcare facilities, e.g., providing aid to patients afflicted with HIV/AIDS/Polio.  The foreign NGO gives money to an Indian manufacturer of artificial limbs, viz., XYZ Company, to manufacture and supply those goods free of cost to another Indian FCRA registered NGO, viz., ABC Trust, which is involved in charitable distribution of artificial limbs to the patients/individuals suffering from polio. Whether this will be exempt from the definition of FC as per Explanation 3 under Section 2(1)(h) of FCRA, 2010 or get covered as per Explanation 1 under Section 2(1)(h) of FCRA, 2010?

Question 27:   An individual (citizen of a foreign country) living in another country unfortunately dies there.  His/her nominee is an Indian citizen living in India.  The foreign insurance company honours the insurance claim of the nominee and pays the amount to the nominee.  Will this amount to acceptance of foreign contribution?

Further, the deceased individual had some property in the foreign country and the nominee disposes of those properties and brings the money to India.  Will that money be treated as foreign contribution?

Could the nominee utilise the amounts for making donations to any organisation?

Question 28:   Whether receipt of money through Western Union or MoneyGram would be permissible as foreign contribution?

Question 29:   Whether donations from Indian companies which operate in 2 or more countries are to be treated as foreign contribution?

Question 30:   The subsidiary of an Indian company is located abroad. Whether donations from the subsidiary are to be treated as foreign contribution?

Question 31:   Whether any subsidised or unsecured loan from a foreign source for charitable purposes may be treated as foreign contribution?

Question 32:   Whether the donation of any article given on lease by a foreign source without any consideration would be treated as foreign contribution?

Section III: FOREIGN SOURCE ‒ DEFINITION & CLARIFICATION

Question 33:   What is a foreign source?

Question 34:   Which are the bodies/organisations of United Nations and other international agencies that are not treated as foreign source under FCRA?

Question 35:   Whether an individual of Indian origin who has acquired foreign nationality is treated as foreign source?

Question 36:   What is a foreign company?

Question 37:   What is a multi-national corporation?

Question 38:   What is a subsidiary?

Question 39:   Whether a company incorporated in India under the Companies Act, 1956/ Companies Act, 2013 having its operations in 2 or more countries is to be treated as a MNC and a foreign source under FCRA, 2010?

Question 40:   The definition of ‘foreign source’ under FCRA was amended through insertion of a proviso to Section 2(1)(j)(vi). How did that amendment come about?

Question 41:   What were the reasons for insertion of a proviso to Section 2(1)(j)(vi) to partially amend the definition of ‘foreign source’ under FCRA, 2010?

Question 42:   What are the implications of the new proviso to Section 2(1)(j)(vi) which has partially amended the definition of ‘foreign source’ under FCRA, 2010 with retrospective effect?

Section IV: OTHER KEY DEFINITIONS

Question 43:   Who or what is a ‘person’ for the purpose of FCRA, 2010?

Question 44:   What is an ‘Association’ for the purpose of FCRA, 2010?

Question 45:   Who is a candidate for election?

Question 46:   What is a Legislature?

Question 47:   What is a political party?

Question 48:   What is a foreign security?

Question 49:   What is the meaning of ‘Authorised Person in foreign exchange’

Question 50:   What is a trade union?

Question 51:   What is a registered newspaper?

Question 52:   What is a corporation for the purposes of FCRA, 2010?

Question 53:   Who is a relative under FCRA, 2010?

Section V: WHO CAN & WHO CANNOT ACCEPT FC

Question 54:   Who can accept foreign contribution?

Question 55:   Who cannot accept foreign contribution?

Question 56:   What can be accepted as foreign contribution even by persons specified in Section 3 of FCRA, 2010, i.e., persons otherwise prohibited from accepting FC?

Question 57:   Whether foreign remittances from relatives can be accepted by individuals without MHA’s approval?

Question 58:   Whether individuals not covered under section 3 or a HUF can freely accept foreign contribution for the purposes listed in section 4 of FCRA, 2010?

Question 59:   Whether an individual can freely accept any scholarship or stipend or any payment of like nature from a foreign source?

Section VI: REGISTRATION & PRIOR PERMISSION

Question 60:   How does a person obtain permission to accept FC?

Question 61:   What are the eligibility criteria for grant of registration?

Question 62:   What kind of documentary evidence is required to prove the existence of an Association for at least 3 years?

Question 63:   Could registration be given to an Association which has not completed 3 years of its existence and/or has not spent Rs.15 lakh over the last three years on its activities by granting exemption?

Question 64:   Could an organisation registered in UP under Societies Registration Act have FCRA registration with a Delhi address?

Question 65:   Whether an Association, which has obtained registration under FCRA, 2010 needs to obtain permission of the Government each time it is to receive FC?

Question 66:   What are the eligibility criteria for grant of prior permission?

Question 67:   Does FCRA, 2010 prescribe any minimum/maximum amount of FC for which an application for the grant of PP can be made?

Question 68:   Could an Association seek prior permission for receiving a large amount of FC and after receipt of PP for the same, whether it can receive the FC amount in instalments and whether there is any time limit under FCRA, 2010 by which it should receive the whole amount?

Question 69:   An Association seeks and receives prior permission to accept Rs. 1 lakh from a foreign donor and at the time of submission of application, 1 US$ was equivalent to Rs. 50.   However, when it actually receives US$ 2000, an amount of Rs. 1,10,000/- is credited in its account due to change in exchange rate (1 US$ = Rs. 55).  Is that permissible?

Question 70:   An Association seeks and receives prior permission to accept FC denominated in foreign currency (say US$ 2,000) from a foreign donor and at the time of submission of application, 1 US$ was equivalent to Rs. 50. However, when it actually receives US$ 2000, an amount of Rs. 1,10,000/-is credited in its account due to change in exchange rate (1 US$ = Rs. 55). Is that permissible?

Question 71:   On the basis of a commitment letter from a foreign donor to donate US$ 1000, an Association seeks and receives prior permission to accept US$1000.  However, the foreign donor donates only US$500 for some reason.  Is that permissible?

Question 72:   Is there any time limit under FCRA, 2010 by which the amount of FC received is to be utilised?

Question 73:   What is the validity period of registration granted under FCRA, 2010?

Question 74:   What is the validity period of prior permission granted under FCRA, 2010?

Question 75:   What are the conditions to be met for the grant of registration/PP?

Question 76:   How to file an online application for registration/PP?

Question 77:   Whether an Association should open a designated bank a/c for receipt of FC before submission of its application for registration or prior permission?

Question 78:   What are the details to be provided in the online application for registration (Form FC-3A)?

Question 79:   What are the documents to be uploaded with the online application (Form FC-3A) for registration?

Question 80:   What are the details to be provided in the online application for prior permission (Form FC-3B)?

Question 81:   What are the documents to be uploaded with the online application (Form FC-3B) for prior permission?

Question 82:   Is there a specific format for the commitment letter and agreement from the foreign donor that is to be uploaded with the application for PP?  Is it necessary that the applicant Association has to submit original commitment letter on the letter-head of the foreign donor?

Question 83:   What should be the size of the project report to be submitted with an application for prior permission?

Question 84:   What other documents should be uploaded with an application for registration or prior permission?

Question 85:   Since payment of fee through the online gateway would require a credit/debit card of a bank, is it necessary that the same should be in the name of the Association concerned? Given that the Associations generally do not use any credit/debit card in the name of the organisation, how would an applicant Association pay the fee through the payment gateway in the absence of such a card?

Question 86:   What other points should be borne in mind for submission of an application for registration or prior permission?

Question 87:   How to rectify an error in the application for registration/PP or renewal of registration/PP or renewal of registration that has already been submitted online?

Question 88:   Whether DARPAN ID of the Association is to be mandatorily mentioned in the online application for registration or prior permission?

Question 89:   Whether Aadhaar number of each office bearer or director or other key functionary the of the Association is to be mandatorily mentioned in the online application for registration or prior permission?

Question 90:   What is the meaning of the term ‘Chief Functionary’, for the purpose of submitting an application?

Question 91:   What is the meaning of the term ‘key functionary’/’key member’, for the purpose of submitting an application and the Affidavit?

Question 92:   What is the definition of the Executive Council/Governing Body etc. of an Association?

Question 93:   Could an ‘artificial person’ be a trustee/member of EC/GC of an Association for the purpose of FCRA?

Question 94:   Could a second application be made within 6 months of submitting an application for registration?

Question 95:   Could a second application be made within 6 months of submitting an application for grant of prior permission?

Question 96:   Does an Association require to obtain recommendation of District Collector/Deputy Commissioner/District Magistrate or any other agency/Department for getting MHA’s approval for registration/PP?

Question 97:   Is verification of the antecedents of the Association and its office bearers by the law enforcement agencies mandatory?

Question 98:   Is there any restriction under FCRA, 2010 for having relatives in the executive committee/governing body of an Association?

Question 99:   Whether foreigners can be appointed as members of the executive committee or governing body of an Association seeking registration or PP?

Question 100:   Could a foreigner be inducted as a member of the executive committee/governing body of an Association or trustee of a Trust which has already obtained registration/PP under FCRA?

Question 101:   FCRA, 2010 does not have any specific provision restricting appointment of foreigners in the executive committee/governing body of an organisation seeking registration or prior permission.  Why such a restriction has been imposed by MHA?

Question 102:   A section 8 company under the Companies Act, 2013 can also be incorporated without share capital as ‘Company Limited by Guarantee’ and not having Share Capital.   Since no contribution by way of foreign capital would be required, foreign nationals and/or foreign entities can become subscribers to the Memorandum. In that case, for appointment of foreign nationals as Directors and Subscribers, would it be necessary to seek approval under FCRA, 2010? Further, if at any time foreign contribution is sought in that company, whether prior approval under FCRA, 2010 would be necessary?  What would happen to those foreign nationals who are existing Directors in that company?

Question 103:   Whether Government servants, Judges and employees of a Government owned/controlled company/body can be on the executive committee/board of an Association under FCRA, 2010?

Question 104:   Whether an employee of a newspaper or electronic media can be a member of the executive committee or governing body of an Association under FCRA, 2010?

Question 105:   Whether a member of any Legislature or an office-bearer of a political party can be a member of the executive committee or governing body of an Association under FCRA, 2010?

Question 106:   Is there any restriction under FCRA, 2010 for an individual to be on the executive committees/governing bodies of several Associations?

Question 107:   Is there any restriction under FCRA, 2010 for an individual to be chief executive officer (CEO) or Chief Functionary of several Associations?

Question 108:   Please explain the process followed by MHA for disposal of an application for registration or prior permission.

Question 109:   What are the common grounds for rejection of an application?

Question 110:   Whether an Association can represent against rejection of its application for grant of registration/PP?  Whether there is any fee for such representation?

Question 111:   How to find the status of pending application for registration/PP/renewal?

Question 112:   What is the time frame for disposal of an application for registration/PP?

Question 113:   Generally, MHA does not dispose of applications within 90 days even after submission of applications complete with all documents and fee.  What are the reasons for delay?

Question 114:   Could a private limited company or a partnership firm get registration or prior permission under FCRA, 2010?

Question 115:   Whether an individual or a Hindu Undivided Family (HUF) can be given registration or prior permission to accept foreign contribution in terms of section 11 of FCRA, 2010?

Question 116:   Whether Proprietorship Firm is treated as an Individual for the purpose of obtaining registration or prior permission under FCRA?

Question 117:   Whether an organisation engaged in running community radio station requires registration or prior permission under FCRA, 2010?

Question 118:   Whether Liaison Offices or Branch Offices of foreign organisations require registration or prior permission under FCRA, 2010?

Question 119:   Whether organisations under Central/State Governments are required to obtain registration or prior permission under FCRA, 2010 for accepting FC?

Question 120:   Is it mandatory for an Association to have registration under the Income Tax Act, 1961 to be eligible for getting registration or prior permission under FCRA, 2010?

Section VII: ACCEPTANCE & UTILISATION OF FOREIGN CONTRIBUTION

Question 121:   From whom foreign contribution may be accepted?  Are there any banned organisations from whom FC should not be accepted?

Question 122:   Is it a fact that some donor organisations have been placed in ‘prior approval’ category and the banks do not allow credit of FC from such donors in the accounts of even FCRA registered organisations without the approval from MHA?

Question 123:   How would the FCRA registered organisations know whether the foreign donor is in ‘prior approval’ category or not? What should any organisation including the FCRA registered organisations do if they are to receive FC from any of the donors in ‘prior approval’ category?

Question 124:   Should an Association utilise foreign contribution for any purpose?

Question 125:   What are the permissible activities for which foreign contribution may be accepted and utilised by an Association? Is there any list of permissible activities?

Question 126:   What are administrative expenses as per FCRA, 2010?

Question 127:   Please explain the types of expenses that should be included or excluded for calculating ‘administrative expenses’ of an Association. What does the ceiling of 20% on ‘administrative expenses’ prescribed under Section 8 of FCRA, 2010 imply?

Question 128:   What is to be done if administrative expenses are higher than the prescribed ceiling?

Question 129:   If an Association does not utilise 20% of the FC received in any FY on its administrative expenses in the same FY, can it carry forward the unutilised amount of FC towards utilisation on administrative expenses in the next FY?

Question 130:   If an Association does not receive any FC in any FY, how would it meet its administrative expenses in that FY when it can’t carry forward any FC received in the previous FY towards utilisation on administrative expenses in the next FY?

Question 131:   Does an Association need to maintain separate accounts for its administrative expenses and report the same as percentage of foreign contribution received in its annual return?

Question 132:   Could an Association use the foreign contribution for investment in mutual funds 0r in shares and other speculative investments?

Question 133:   Could an Association use the foreign contribution for investment in any guaranteed return scheme?

Question 134:   Could capital assets purchased with the help of foreign contribution be acquired in the name of the office bearers of the Association?

Question 135:   Could an Association invest the FC received by it in profitable ventures and proceeds can be utilized for welfare activities?

Question 136:   Whether a FCRA registered Association can use its FC asset as collateral for obtaining loan from a Bank?

Question 137:   Is outward remittance of funds out of FC account permissible?

Question 138:   Whether FC, interest earned thereon and income derived therefrom can be repatriated to the donor?

Question 139:   Could the FC be sent abroad for another project?

Question 140: An Association received some FC for a particular project. The project got completed but, some amount of interest accrued on the FC received for that project remains available. Could the Association utilise that available interest towards its other activities?

Question 141:   Could a FCRA registered Association use its FC towards reimbursement of expenditure it had to incur earlier on its declared activities?

Question 142:   Could an Association which has been placed under PP category (but continues to hold registration) utilise the foreign contribution received earlier?

Question 143:   Is it necessary to issue a receipt for the FC received by an Association?

Question 144:   Whether FC should be accepted by Associations through payment gateway? What is SWIFT mode?

Question 145:   Whether Associations may use a payment gateway for accepting domestic donations or for crowd funding, which are not treated as FC?  If yes, what are the precautions that should be taken by such associations?

Question 146:   FCRA registered Associations sometimes receive small amounts of voluntary donations from various domestic and international sources without any specific instructions regarding the manner in which the donations should be utilised. How the Associations should utilise such donations?

Question 147:   How to account for the donations, both in INR and foreign currency, received by FCRA registered Associations in their donation boxes?

Question 148:   Is there a limit on making payment in cash out of the FC?

Question 149:   Could an Association having registration or prior permission under FCRA, 2010 transfer the foreign contribution received by it to another person?

Question 150:   Whether an Association having registration or prior permission can give financial assistance as charity to individuals, Self-Help Groups (SHGs) and Community Based Organisations (CBOs)?

Question 151:   Whether an Association registered under FCRA can give loans or advances, interest bearing or otherwise, and secured or otherwise, out of the FC received to SHGs and CBOs?

Question 152:   Is it permissible for X, a FCRA registered Association to engage Y, another FCRA registered Association, or any organisation not registered under FCRA for executing a project and whether X can make payment to Y out of its FC?  Will such payment be treated as transfer of FC to Y?

Question 153:   What is a corpus fund? Whether donation from corpus fund created out of FC towards corpus funds of other charitable organisations attracts FCRA? Is there any restriction regarding utilisation of corpus fund and/or interest accrued thereon?

Question 154:   Could an Association transfer the small donations to its corpus fund?

Section VIII: MAINTENANCE OF ACCOUNTS

Question 155:   Could FC be mixed with local receipts?

Question 156:   What should be the method of accounting as per FCRA, 2010?

Question 157:   For how long the financial statements are to be kept by an Association?

Question 158:   Is it necessary for Associations to maintain a register of investments?

Question 159:   Is it necessary for Associations to maintain separate accounts for its administrative expenses?

Question 160:   Whether interest or any other income earned out of FC is to be shown as FC receipt during that year or not?

Question 161:   Could the expenditure on any project or for creation/purchase of an asset may be met both from domestic funds and FC?

Question 162:   How to account for the sale proceeds of an asset created out of FC?

Question 163:   What happens if an asset created partially from foreign contribution and partially from local fund is sold?

Question 164:   How to account for an asset (e.g., land, building, vehicles, computer, office equipment etc.) created/purchased with FC after the asset has lost its total value due to depreciation, or is to be disposed of?

Question 165:   What would be best way for dealing with foreign contribution received as securities?

Question 166:   How to account for the sale proceeds received from liquidation or sale of foreign contribution received as securities or articles?

Question 167:   Whether the surplus of income over expenditure may be transferred to the general fund in the domestic books of account?

Section IX: FILING OF ANNUAL RETURN

Question 168:   Is there any provision under FCRA, 2010 for disclosure of data relating to receipt and utilisation of FC by an Association through filing of returns?

Question 169:   What are the provisions relating to filing of Annual Returns?

Question 170:   Is online submission of annual return mandatory?

Question 171:   Is online submission of annual return mandatory even for Association that did not receive or utilise any FC during the financial year and, if yes, what are the requirements?

Question 172:   What are the details/documents required for filing the annual return in Form FC-4? What are the documents to be uploaded along with the Form FC-4?

Question 173:   What other points should be kept in mind for filing the Annual Return?

Question 174:   How to file Annual Return online?

Question 175:   Item 5 of Form FC-4 seeks details of foreigners in an Association as key functionary/working /associated.  Is there a restriction under FCRA for foreigners to work for the NGOs either voluntarily or as employees?

Question 176:   How the value of the articles and foreign securities received as FC would be computed? Does FCRA, 2010 or FCRR, 2011 prescribe any method for such valuation?

Question 177:   Some Associations may receive FC in the form of software from Microsoft, Adobe etc.  How such FC is to be shown in the annual return — as currency or gift?

Question 178:   Is it possible for an Association to submit a revised Annual Return online after it notices that there are errors in the return already submitted?

Question 179:   What happens in those cases where Associations are not in a position to submit the annual return online?

Question 180:   What may be the consequences if there is a delay in filing the annual return?

Question 181:   What will happen if the annual return is not filed at all?

Question 182:   Could an Association whose FCRA registration has been cancelled for non-submission of annual return apply for its restoration and if so, how?

Question 183:   Will non-submission of annual return adversely affect renewal of registration under FCRA, 2010?

Question 184:   Does an Association which has been placed under PP category (but continues to hold registration) require to file its annual return so long as there remains unutilised foreign contribution?

Question 185:   What should an Association having prior permission to receive FC do for filing the mandatory annual return if it gets FCRA registration subsequently?

Section X: BANKS & ISSUES RELATED TO BANKING

Question 186:   What is the role of the banks in implementation of FCRA, 2010?

Question 187:   What are the specific provisions of FCRA, 2010 and FCRR, 2011 that the Banks should be concerned with?

Question 188:   Which is the specified branch of the State Bank of India at New Delhi where the designated FCRA Account is to be opened for receiving foreign contribution?

Question 189:   What are the directives of MHA to open and operate the FCRA Account in SBI, NDMB?

Question 190:   Does Section 17(1) of FCRA, 2010 read with MHA’s FCRA Charter for Banks dated 29/01/2021 mean that Associations having registration/PP can have multiple bank accounts for receipt and utilisation of FC?

Question 191:   Are there any specified banks for the purpose of opening “another FCRA Account” or “Utilisation Account”(s)?

Question 192:   Whether Banks should allow an Association to open all such accounts for receiving, keeping and utilising foreign contribution with INR?

Question 193:   Is there any requirement under FCRA, 2010 for maintaining a minimum balance in the FCRA Account by an Association?

Question 194:   In which bank account – the ‘another FCRA Account’ or the ‘Utilisation Account(s)’ – an Association should deposit its FC receipts that are not coming through foreign remittances?

Question 195:   Does an Association need to have separate Bank accounts ‒ for its local funds and FC funds?  Whether inter-account transfer of funds between the bank accounts for FC and the domestic bank accounts of an Association is permissible?

Question 196:   Whether Banks should credit any FC received by an Association to its account even if the Association does not have registration/PP from MHA and subsequent reporting can be made by Banks to MHA?

Question 197:   How to treat undisclosed/anonymous donations received in domestic or FCRA Account(s) through wire transfer from abroad?

Question 198:   Should the Banks report transactions pertaining to FC which are returned back to the remitter by the beneficiary Association for want of registration/prior permission from MHA?

Question 199:   Whether reporting by Banks is also applicable for transfer of funds between FCRA accounts of two or more Associations?

Question 200:   An Indian citizen living in a foreign country, i.e., a Non-Resident Indian holding valid Indian passport, sends donation in foreign currency through normal Banking channels from his foreign Bank account.  Whether such donation in foreign currency should be deposited into the FCRA Account or the domestic bank account?

Question 201:   Whether donation received from a foreign citizen/source is to be deposited in FCRA Account(s) or only the amount coming through a Bank situated outside India is to go into the FC A/c?

Question 202:   There are complaints from various Associations that some banks refuse to allow credit of legitimate foreign contributions in the FCRA Accounts of Associations having registration/PP. What should an Association do in such cases?

Question 203:   Sometimes, foreigners visiting India donate cash in foreign currency to FCRA registered trusts etc. It has been noticed that the branches of certain banks refuse to deposit the cash donations in the FCRA Accounts of the trusts.  What should be done in such cases?

Question 204:   Does it require any approval of MHA for withdrawal of money from the FCRA Account and re-depositing the unutilised portion thereof back to that Account?

Question 205:   Whether an Association can re-deposit unutilised amount of FC drawn as advance from the ‘another FCRA Account’ for some purpose in the normal course of running the organisation, such as, foreign/ local tour/ project advance/ advance to an employee etc. as also any amount of refund on account of cancellation of tickets (air/rail) back to that same account?

Question 206:   Whether an Association can re-deposit unutilised amount of FC drawn as advance from the Utilisation Account for some purpose in the normal course of running a project, such as, local tour, advance to an employee for executing some work related to the project etc. back to the Utilisation Account?

Question 207:   Whether inter-account transfer of FC funds is allowed within the multiple Utilisation Accounts of an Association?

Question 208:   Whether an Association can open separate FCRA A/cs for separate donors?

Question 209:   Whether the donor’s representative can be a signatory to the cheque book for operating the Utilisation Account opened by an Association for utilisation of the FC from that donor?

Section XI: RENEWAL OF REGISTRATION

Question 210:   What are the relevant provisions of the Act/Rules regarding renewal of registration?

Question 211:   What is the procedure for renewal of registration?

Question 212:   What are the documents to be uploaded with the online application for renewal of registration (Form FC-3)?

Question 213:   What will happen in the case of non-submission or delayed submission of application for renewal?

Question 214:   What happens to those cases of pending applications for renewal which have been properly filed along with the prescribed fees but MHA’s approval is awaited?

Question 215:   Could the Associations receive any FC or utilise their FC balance lying in bank accounts after expiry of registration when their applications for renewal are pending?

Question 216:   What is the process followed by MHA for considering an application for renewal of registration?

Section XII: CHANGE IN NAME/ADDRESS, OBJECTIVES, MEMBERS OF EC, REGISTRATION, AND FC BANK ACCOUNT ETC.

Question 217:   Whether Associations having registration or prior permission under FCRA, 2010 need to intimate and obtain approval MHA about the change of designated bank account, name, address, aims & objectives, registration with other authorities and key members?

Question 218:   What is the procedure for intimating change in the name of the Association and its address within the same State for which it was granted registration/PP?

Question 219:   What would happen in the case of change of address from one State to another State of an Association granted FCRA registration?

Question 220:   What is the procedure for intimating change of nature, aims and objects and registration with local/relevant authorities of an Association granted registration/PP?

Question 221:   What is the procedure for intimating the designated FCRA Account Bank in SBI, NDMB and change of ‘another FCRA Account’ of choice, if any, of an Association granted registration/PP?

Question 222:   An Association wants to change the custodian/signatory of the cheque books etc. in respect of its FCRA Account(s) and Utilisation Accounts. Does it require approval of MHA?

Question 223:   What is the procedure for giving intimation to MHA about opening of additional FC Utilisation Account(s) for the purpose of utilisation of FC?

Question 224:   What is the procedure for intimating change in key members of an Association granted FCRA registration/PP?

Question 225:   Could an NGO without FCRA registration take over a FCRA registered Association and get foreign funding?

Question 226:   An Association, which has submitted application for registration/PP under FCRA, wants to change its name, address and members.  What should the Association do?

Section XIII: OFFENCES & PENALTIES AND COMPOUNDING OF CERTAIN OFFENCES

Question 227:   What are the offences and penalties under FCRA, 2010?

Question 228:   Which are the offences that can be compounded and what would be the penalties therefor?

Question 229:   How to apply for compounding of an offence under FCRA, 2010?

Question 230:   What happens after an offence is compounded?

Question 231:   What if the person is unwilling or unable to pay the penalty imposed?

Question 232:   Could there be prosecution for an offence even after the offence has been compounded?

Question 233:   What if the person commits the same offence after compounding of one offence?

Question 234:   What happens in the case of offences that cannot be compounded?

Question 235:   Could the offences committed under FCRA, 1976, i.e., before FCRA, 2010 came into force, be compounded under FCRA, 2010?

Question 236:   Can the quantum of penalty be waived or reduced keeping in view the amount of contribution received or financial condition of an Association or its charitable work for the beneficiaries?

Question 237:   A foreign donor sends money through electronic transfer to the bank account of an Association which is not registered or having PP under FCRA, 2010 without the knowledge of the Association and the money is credited by the bank to the account of that Association.  Will this constitute a violation of the Act and if so, what will be the penalty?

Question 238:   An Indian citizen (NRI), i.e., Indian passport holder, working abroad collects some donation from a foreign source.  Thereafter, he passes on the contribution to an Association in India, which is registered under FCRA, 2010.  Whether that money will be treated as foreign contribution?  If so, was there any violation of the Act?

Question 239:   An Association having FCRA registration received FC over a period of several years. The Association utilised part of the FC on its aims & objectives and transferred the balance FC to a number of smaller Associations, who also used the money on their charitable programmes.  The recipient Associations did not have registration/ PP.   What will happen in such a case?

Question 240:   A foreign citizen in his will leaves some money for an Association in India.  After his death, the solicitors of the deceased foreigner request the Association to collect the money and after confirmation, the same is electronically transferred to the bank account of the Association. The Association is not registered under FCRA and it did not take permission from MHA before accepting the money.  Whether acceptance of the money attracts the provisions of FCRA, 2010 and if so, how to regularise it?

Section XIV: MONITORING, INSPECTION & INVESTIGATION

Question 241:   What is the mechanism followed by MHA to ensure acceptance and utilisation of foreign contribution are in accordance with FCRA, 2010?

Question 242:   Whether the accounts of a FCRA registered Association which regularly files its annual returns may be further examined/audited? If so, in what manner?

Question 243:   How does the Monitoring Unit of FCRA Wing play its role?

Question 244:   Does the Monitoring Unit conduct its inspection with due notice to the Association concerned?

Question 245:   Could the Inspecting Team seize any record or article or currency during such inspections?

Question 246:   What is achieved through such inspections?

Question 247:   What follows such inspections?

Question 248:   What are the common violations found during inspections?

Question 249:   Which are the investigating agencies for investigating and prosecuting a person for violation of FCRA?

Question 250:   Could the offences committed under FCRA, 1976, i.e., before FCRA, 2010 came into force, be investigated under FCRA, 2010?

Question 251:   Does MHA conduct its own inspection before handing over a case to the Investigating Authorities?

Question 252:   What happens after a case is handed over by MHA to the investigating authorities for investigation?

Section XV: SUSPENSION, CANCELLATION & SURRENDER OF REGISTRATION

Question 253:   Could the Government suspend the certificate of registration granted to a person under FCRA?

Question 254:   Will an Association, whose registration has been suspended, be able to receive any FC and/or utilise any FC it its possession?

Question 255:   Could the Government cancel the certificate of registration granted to a person under FCRA?  If so, for what reasons?

Question 256:   Could the Government cancel an Association’s registration without assigning any reason and providing an opportunity to present its case?

Question 257:   Could an Association whose registration has been cancelled in terms of Section 14 of FCRA, 2010 again apply for grant of registration or prior permission?

Question 258:   Could an Association whose registration has been cancelled make a representation to MHA for revocation of the order for cancellation?

Question 259:   What will happen to the unutilised FC and assets created out of FC after the registration of an Association is cancelled?

Question 260:   Could the registration of an Association be cancelled if it had been filing ‘nil’ return for two consecutive years?

Question 261:   Could an Association voluntarily apply for surrender of its registration under FCRA for whatever reason?

Section XVI: ORGANISATION OF POLITICAL NATURE

Question 262:   What is an organisation of political nature?

Question 263:   What are the guidelines for declaring an organisation as ‘an organisation of a political nature’, not being a political party?

Question 264:   Could a non-political organisation be declared as an organisation of political nature?

Question 265:   Will working with Panchayat be treated as political activity?

Question 266:   What happens if an organisation is declared as ‘an organisation of a political nature’?

Question 267:   What are the procedures followed by the Government for declaring an organisation as ‘an organisation of a political nature’?

Question 268:   When does the order of the Central Government declaring ‘an organisation of a political nature’ become effective?

Section XVII: FOREIGN HOSPITALITY

Question 269:   What is foreign hospitality?

Question 270:   To whom the restrictions relating to acceptance of foreign hospitality are applicable?

Question 271:   Whether the restrictions on acceptance of foreign hospitality are applicable to any functionary of an Association which is not owned or controlled by the Government?

Question 272:   Who cannot accept foreign hospitality without prior approval of the Ministry of Home Affairs?

Question 273:   Whether approval of MHA is required in cases where the proposed foreign visit is being undertaken by a person in his/her personal capacity and the entire expenditure thereon is being met by the person concerned or by his/her relative?

Question 274:   How can one seek permission of the Government for receiving foreign hospitality?

Question 275:   What are the provisions under FCRA, 2010 relating to acceptance of gifts or presentations by a member of any Indian delegation?

 

 

 

 

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