INDIA: The government has amended the Foreign Contribution Regulation Act (FRCA) which means that Indian citizens can now receive up to rupees 10 lakh from their relatives staying abroad without having to reveal it to the authorities.
The limit was earlier set at one lakh per year above which if any transaction happened the organization/ citizens had to disclose reasons to the authorities within 30 days. The 30 days limit has also been exceeded to 90 days.
The new rules, titled Foreign Contribution (Regulation) Amendment Rules, 2022, were published in the gazette on Friday by the Ministry of Home Affairs (MHA).
As per MHA announcement, “In Rule 6 of the Foreign Contribution (Regulation) Rules, 2011, the terms “one lakh rupees” shall be substituted for “ten lakh rupees,” and the phrases thirty days shall be substituted for three months.”
Other changes to the Act included declarations made on the organizations’’ end on receiving foreign money. The Ministry has removed paragraph ‘b’ from Rule 13, which dealt with declaring foreign funds on its website every quarter by the organization taking the money, including details of donors, amount received, and date of receipt. Anyone receiving foreign funds under the FCRA will now be required to follow the novel rules of posting the audited statement of accounts on receipts and utilization of the foreign contribution, including balance sheet, income and expenditure statement and account details for payments and receipts, for a fiscal year.
Apart from that, the MHA included five more FCRA offences as compoundable offences, making 12 such offences compoundable rather than immediately prosecuting the organizations or persons involved in the offence. Formerly, only seven FCRA offences were compoundable.
What is Foreign Contribution Regulation Act (FCRA)?
FCRA is a consolidating act passed by the Government of India in the year 2010. The Act is there to regulate the foreign contributions or donations and hospitality (air travel, hotel accommodation etc) to Indian organizations and individuals and to stop any illegal or unsolicited monies coming to the country, which might damage the national interest and growth. The Government found it necessary to keep a check on any such money crossing borders.
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