My EBooks
FCRA - A Precise Note by Bharat Thakkar
The Foreign Contribution (Regulation) Amendment Act, 2020, commonly referred to as FCRA, is a legislation that governs foreign donations in order to prevent any adverse effects on internal security. Originally enacted in 1976, the FCRA underwent significant amendments in 2010 to introduce a range of measures aimed at regulating foreign contributions. Under the FCRA, all associations, groups, and non-governmental organizations (NGOs) that receive foreign donations are required to adhere to its provisions. Registration under the FCRA is mandatory for such NGOs.
Upon initial registration, NGOs are granted a validity period of five years, which can be extended upon meeting all the necessary requirements. Registered associations are permitted to receive foreign contributions for various purposes, including social, educational, religious, economic, and cultural endeavors. Similar to income tax returns, these organizations are obligated to submit annual returns as well.