Amendments in FCRA Rule 2015 (draft)
After a circular regarding DSC of chief functionary, FCRA Department has issued a circular on 17th June 2015, (Download from here)asking for suggestion on amendments to Foreign Contribution Regulation Rules, 2011 by Foreign Contribution Regulation Rules (2015).
THIS IS A DRAFT AMENDMENTS and suggestions or comments asked from public and other stakeholders on or before 1st July, 2015.
We are in the process of analyzing and studying all the changes in the amendments and it impacts. Meanwhile let us see important changes which are suggested in the amendments of FC Rules :
Website will become mandatory
After this amendments, every NGOs with FC registration will have to build a website. No, it is not declared directly as mandatory. But changes made to Rule 13(1) stating that every registered organization has to publish audited Income Expenditure, Receipt Payments and Balance Sheet of Foreign contribution to its website before 31st December of every year. Such website has to be declared as official website and is to be informed to FCRA department.
Have to publish Foreign Receipt within 7 days
Yes, you have to publish to your official website, every foreign receipts within seven days of receipts. Refer rule 13(B) of such draft amendments.
Bank will have to report in 48 hours
Bank will have to report of FCRA department within 48 hours of any transactions in respect of receipt and utilization of any foreign contribution. Refer rule 16 (2) of such draft amendments.
Online Procedures
We have already write a blog stating how FCRA department is eager to implement all the online procedure. Here in this amendments it is clearly mention that now onwards all the forms will be filled online through DSC and also you can make payment through online payment gateway.
Change in Forms
All the form numbers will be changed e.g. Annual Return Form FC-6 now become FC-4. Not only form numbers, but details and information given in the forms will also changed. We will soon post a blog showing what changes will be made in Forms.
You can give Suggestions
FCRA department has asked for suggestions on the above mentioned amendments from public. You can give your suggestions by email to Mr. A.K. Dhyani, Under Secretary to the Government of India on ak.dhyani@nic.in.
Alternatively you can give your suggestion in the comment box below. We will compile all the suggestions and email to the authority.
Note – This amendments are draft and not final. This will be implemented only after FCRA Rule, 2015 published in the Official Gazzette.
http://pib.nic.in/newsite/PrintRelease.aspx?relid=123488
Request you to refer to above link .
Thank you so much joshiji for the piece of information. It really helpful. This above stated draft of amendment is still there in MHA website.
As mentioned by Mr. Joshi in the above comment,
Press Information Bureau
Government of India
Ministry of Home Affairs
22-July-2015 13:51 IST
Amendment in the Foreign Contribution Regulation Act
The acceptance and utilization of foreign contribution is regulated under Foreign Contribution (Regulation) Act, 2010 (FCRA) and Foreign Contribution (Regulation) Rule, 2011 (FCRR) framed thereunder. They provide for procedure to grant registration and prior permission for receipt of foreign contribution and its utilization, maintenance of accounts, inspection of accounts of the association, etc. They also prescribe various offences and penalties that may be imposed, including suspension and cancellation of registration in case of violation of the provisions of FCRA and FCRR.
Action has been taken against NGOs only when instances of non- Governmental Organisations violating provisions of the FCRA and FCRR have come to Government’s notice. FCRA and FCRR came into force with effect from 01.05.2011. Since then, notices were issued to around 21,000 associations in 2011 and to 10,343 associations in 2014 for not filing annual returns continuously for three years. Consequently, registration of 4,138 associations was cancelled in July 2012 and of 10,117 in March 2015 after issue of Show Cause Notices to such associations and giving them adequate opportunity. After inspections and scrutiny of accounts, 15 cases were referred to CBI and 10 to State Police for further investigation and prosecution. Accounts of 23 associations have been frozen. 20 associations have been prohibited from receiving foreign contribution. In 2014, penalty amounting to Rs.5,20,82,031/- has been imposed on 341 associations for late/ non-submission of mandatory annual returns and of Rs. 51,99,526/- on 24 associations for receipt and utilization of foreign contribution without obtaining registration of prior permission under the FCRA.
There is no proposal to amend the Foreign Contribution Regulation Act, 2010.
This was stated by the Minister of State for Home Affairs, Shri Kiren Rijiju in a written reply to a question by Shri Anand Sharma in the Rajya Sabha today.
Does Chartered Accountant need to sign the report digitally while on line submission of report?
Still DSC mechanism is not incorporated in new fcraonline website.
Currently signed copies are to be scanned and uploaded.