Home India Ministry of Home Affairs Amendment in the Foreign Contribution (Regulation) Rules, 20...
Date: 31-Dec-2024 Category: Extra Ordinary State: Union Government Country: India

Amendment in the Foreign Contribution (Regulation) Rules, 2011.

Issued by Ministry of Home Affairs · Foreigners Division

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Executive Summary & Key Takeaways

What it means

  • This gazette notification introduces the Foreign Contribution (Regulation) Amendment Rules, 2024, which amends the Foreign Contribution (Regulation) Rules, 2011.
  • The amendment allows organizations to carry forward unspent administrative expenses to the next financial year.
  • It also introduces additional reporting requirements in Form FC-4, including details of the Chartered Accountant certifying the form.

Key Changes

  • Effective date: The rules come into effect on January 1, 2025.
  • Carry Forward of Unspent Administrative Expenses: Organizations can now carry forward unspent allowable administrative expenses to the immediately succeeding financial year, provided the reasons are stated in Form FC-4.
  • New Item in Form FC-4: A new item has been added to Form FC-4 for reporting the transfer of foreign contribution part of income-tax refund from non-FCRA bank accounts.
  • New Section in Form FC-4: A new section has been added to Form FC-4 to capture details of the carry forward of unspent administrative expenses, including the amount brought forward, total foreign contribution received, allowable expenses, expenses incurred, utilized and the reason for carry forward.
  • Chartered Accountant Details: Form FC-4 now requires details of the Chartered Accountant issuing the certificate, including name, address, membership registration number, email, date of certificate and details of any violation of the Act pointed out in the certificate.
  • Revised Chartered Accountant Certificate: The Chartered Accountant's certificate in Form FC-4 is revised to include a declaration on whether the organization has violated any provisions of the Foreign Contribution (Regulation) Act, 2010, or rules/notifications made thereunder, with details of any violations.

Impact Analysis

Impact on Organizations Receiving Foreign Contributions

  • Action Item: Organizations should review their financial processes and accounting systems to incorporate the new requirements.

Impact on Chartered Accountants

  • Action Item: Chartered Accountants should familiarize themselves with the new reporting requirements and ensure they have the necessary documentation to support their certification.

Impact on Government

  • Action Item: Government agencies should update their monitoring systems to accommodate the new reporting requirements.

Key Entities Referenced

Foreign Contribution (Regulation) Act, 2010: The primary legislation governing the acceptance and utilization of foreign contributions in India. Foreign Contribution (Regulation) Rules, 2011: The rules framed under the Foreign Contribution (Regulation) Act, 2010, which provide detailed procedures and guidelines. Form FC-4: The annual return form for foreign contributions, now amended to include new reporting requirements. Chartered Accountant: The professional responsible for auditing and certifying the financial statements and compliance of organizations receiving foreign contributions.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 ससीी..जजीी..--डडीी..एएलल..--अअ..--3311112222002244--225599776644 xxxGIDHxxx CCGG--DDLLxx--xEEG--I33D11E11x22x22x00 2244--225599776644 असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 728] नई दिल्ली, मगं लिार, दिसम्ब र 31, 2024/पौर् 10, 1946 No. 728] NEW DELHI, TUESDAY, DECEMBER 31, 2024/PAUSHA 10, 1946 गृह मत्रं ालय अजधसचू ना नई दिल्ली, 31 दिसम् बर, 2024 सा.का.जन. 790(अ).—केंद्रीय सरकार, जिििे ी अजभिाय (जिजनयमन) अजधजनयम, 2010 (2010 का 42) की धारा 48 द्वारा प्रित्त िजियों का प्रयोग करते हुए, जिििे ी अजभिाय (जिजनयमन) जनयम, 2011 का और संिोधन करने के जलए जनम्नजलजखत जनयम बनाती ह,ै अर्ाात् :-- 1. सजं िप्त नाम और प्रारंभ—(1) इन जनयमों का संजिप्त नाम जिििे ी अजभिाय (जिजनयमन) संिोधन जनयम, 2024 ह ै। (2) ये 1 िनिरी, 2025 से प्रिृत्त होंगे । 2. जिििे ी अजभिाय (जिजनयमन) जनयम, 2011 (जिन्ह ें इसमें इसके पश्चात् उि जनयम कहा गया ह)ै , के जनयम 5 में, िसू रे परंतुक के पश्चात,् जनम्नजलजखत परंतुक अंत:स्ट्र्ाजपत दकया िाएगा, अर्ाात् :-- ‘‘परंतु यह भी दक संगम के पास प्ररूप एफसी 4 में उजल्लजखत दकए िाने िाले कारणों से दकसी जित्तीय िर्ा में अनुज्ञेय प्रिासजनक व्ययों के व्यय नहीं दकए गए जहस्ट्से को ठीक पश्चातिती जित्तीय िर्ा में अग्रनीत करने का जिकल्प होगा ।”। 3. उि जनयमों के प्ररूप एफसी-4 में,-- (क) क्रम सं. 2 के खंड (i) के उपखंड (ख) में, मि (ii) के पश्चात् जनम्नजलजखत मि अंत:स्ट्र्ाजपत की िाएगी, अर्ाात् :-- “(iii) गैर एफसीआरए बैंक खाते से आय-कर प्रजतिाय के जिििे ी अजभिाय जहस्ट्से का अंतरण”; (ख) क्रम सं. 4 के खंड (iii) के पश्चात् जनम्नजलजखत अंत:स्ट्र्ाजपत दकया िाएगा, अर्ाात् :-- 8494 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] “(iv) दकसी जित्तीय िर्ा में अनुज्ञेय प्रिासजनक व्ययों के व्यय नहीं दकए गए जहस्ट्से का अग्रनयन : क्रम स.ं जिजिजिया ं रकम (रुपए म)ें क. अनुज्ञेय प्रिासजनक व्ययों का व्यय न दकया गया अग्रआनीत जहस्ट्सा ख. िर्ा के िौरान प्राप्त कुल जिििे ी अजभिाय ग. चालू जित्तीय िर्ा के अनुज्ञेय प्रिासजनक व्यय [ख का 20 प्रजतित] घ. चालू िर्ा के िौरान उपगत कुल प्रिासजनक व्यय ङ. ऊपर क में से उपयोग दकए गए चालू िर्ा के प्रिासजनक व्यय च. ऊपर ग में से उपयोग दकए गए चालू िर्ा के प्रिासजनक व्यय छ. ऊपर ग का उपयोग न दकया गया अग्रनयन के जलए जहस्ट्सा ि. ऊपर छ में से अगले जित्तीय िर्ा को अग्रनीत की िाने िाली रकम झ. अनुज्ञेय प्रिासजनक व्यय के उपयोग न दकए गए जहस्ट्से को अगले जित्तीय िर्ा में अग्रनीत करने के जलए कारण (ग) क्रम सं. 8 के पश्चात् जनम्नजलजखत अंत:स्ट्र्ाजपत दकया िाएगा, अर्ाात् :-- “9. जनयम 17 के उपजनयम (5) के अधीन प्रमाणपत्र िारी करने िाले चार्ाडा अकाउंर्ेंर् के ब्यौरे : (i) चार्ाडा अकाउंर्ेंर् का नाम ; (ii) पता ; (iii) सिस्ट्य रजिस्ट्रीकरण संख्या ; (iv) ई-मेल पता ; (v) प्रमाणपत्र िारी करने की तारीख ; (vi) क्या प्रमाणपत्र में अजधजनयम के दकसी उल्लंघन को इंजगत दकया गया है, यदि ऐसा ह ैतो उसके ब्यौरे”; (घ) चार्ाडा अकाउंर्ेंर् द्वारा दिया िाने िाला प्रमाणपत्र, िीर्ा के अधीन, खंड (vii) के पश्चात् जनम्नजलजखत पैरा अंत:स्ट्र्ाजपत दकया िाएगा, अर्ाात् :-- “मैंने सभी सुसंगत बजहयों और अजभलेखों का परीिण कर जलया है, जिसके अंतगात एफसी-4 के स्ट्तंभ 8 में उजल्लजखत मि ें भी हैं, और मेरे सिोत्तम ज्ञान और जिश्वास के अनुसार ................... (व्यजि/संगम का नाम) ने (िो कुछ लागू नहीं हो उसे कार् ि)ें । (i) जिििे ी अजभिाय (जिजनयमन) अजधजनयम, 2010 या उसके अधीन बनाए गए जनयमों या उसके अधीन िारी की गई अजधसूचनाओं के दकन्हीं उपबंधों का उल्लंघन नहीं दकया है ; या (ii) जिििे ी अजभिाय (जिजनयमन) अजधजनयम, 2010 या उसके अधीन बनाए गए जनयमों या उसके अधीन िारी की गई अजधसूचनाओं के दकन्हीं उपबंधों का उल्लंघन दकया है । उल्लंघन (उल्लंघनों) के ब्यौरे जनम्नानुसार ह ैं: ...........................”। [फा. सं. II/21022/23(12)/2020-एफसीआरए-III] सौरभ बंसल, संयुक् त जनििे क[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 टर्प्पण : मूल जनयम, भारत के रािपत्र, असाधारण, भाग II, खंड 3, उपखंड (i) में अजधसूचना सा.का.जन. संख्यांक 349(अ), तारीख 29 अप्रैल, 2011 द्वारा प्रकाजित दकए गए र्े और तत्पश्चात्, सा.का.जन. संख्यांक 292(अ), तारीख 12 अप्रैल, 2012, सा.का.जन. संख्यांक 966(अ), तारीख 14 दिसंबर, 2015, सा.का.जन. संख्यांक 199(अ), तारीख 7 माचा, 2019, सा.का.जन. संख्यांक 659(अ), तारीख 16 जसतंबर, 2019, सा.का.जन. संख्यांक 695(अ), तारीख 10 निंबर, 2020, िुजिपत्र सा.का.जन. संख्यांक 17(अ), तारीख 11 िनिरी, 2021, सा.का.जन. संख्यांक 506(अ), तारीख 1 िुलाई, 2022 और सा.का.जन. संख्यांक 683(अ), तारीख 22 जसतंबर, 2023 द्वारा संिोजधत दकए गए । MINISTRY OF HOME AFFAIRS NOTIFICATION New Delhi, the 31st December, 2024 G.S.R. 790(E).—In exercise of the powers conferred by section 48 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central Government hereby makes the following rules further to amend the Foreign Contribution (Regulation) Rules, 2011, namely:- 1. Short title and commencement.—(1) These rules may be called the Foreign Contribution (Regulation) Amendment Rules, 2024. (2) They shall come into force on the 1st day of January, 2025. 2. In the Foreign Contribution (Regulation) Rules, 2011 (hereinafter referred to as said rules), in rule 5, after second proviso, the following proviso shall be inserted, namely:— “Provided also that the association shall have the option to carry forward the unspent part of allowable administrative expenses in a financial year to the immediately succeeding financial year, for reasons to be mentioned in Form FC-4.”. 3. In the said rules, in Form FC-4,- (a) in serial number 2, in clause (i), in sub-clause (b), after item (ii), the following item shall be inserted, namely:- “(iii) Transfer of Foreign Contribution part of income-tax refund from non-FCRA bank account”; (b) in serial number 4, after clause (iii), the following shall be inserted; namely:- “(iv) Carry forward of unspent part of allowable administrative expenses in a financial year. Sl. No. Particulars Amount (in Rs.) A. Brought forward unspent part of allowable administrative expenses B. Total foreign contribution received during the year C. Allowable administrative expenses of current financial year [20 per cent. of B] D. Total administrative expenses incurred during the current year E. Administrative expenses of current year utilised out of A above. F. Administrative expenses of current year utilised out of C above. G. Unspent part of C above available to be carried forward. H. Out of G above, amount to be carried forward to next financial year. I. Reason for carry forward of unspent part of allowable administrative expenses to next financial year. (c) after serial number 8, the following shall be inserted, namely:- “ 9. Details of Chartered Accountant issuing the certificate under sub-rule (5) of rule 17: (i) name of the Chartered Accountant;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (ii) address; (iii) Member Registration number; (iv) e-mail Address; (v) date of issue of certificate; (vi) Whether any violation of the Act has been pointed out in certificate, and if so, details thereof ”; (d) under the heading, Certificate to be given by Chartered Accountant, after clause (vii), the following paragraph shall be inserted, namely:- “I have examined all relevant books and records, including the items mentioned in column 8 of FC-4, and to the best of my knowledge and belief (name of the person/ association)………………… has (strike out whichever of the following is not applicable) (i) not violated any provisions of the Foreign Contribution (Regulation) Act, 2010 or rules made thereunder or notifications issued thereunder; or (ii) violated the provisions of Foreign Contribution (Regulation) Act, 2010 or rules made thereunder or notifications issued thereunder. The details of the violation(s) are as under:……………………………”. [F. No. II/21022/23(12)/2020-FCRA-III] SAURABH BANSAL, Jt. Director Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide notification number G.S.R. 349(E), dated 29th April, 2011 and subsequently amended, vide G.S.R. 292(E), dated 12th April, 2012, G.S.R. 966(E), dated 14th December, 2015, G.S.R. 199(E), dated 7th March, 2019, G.S.R. 659 (E), dated 16th September, 2019, G.S.R. 695(E), dated 10th November, 2020, a Corrigendum vide G.S.R. 17(E), dated 11th January, 2021, G.S.R. 506(E), dated 1st July, 2022 and G.S.R. 683(E), dated 22nd September, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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