Changes made in Annual Return under Foreign Contribution Regulations Act

Every association registered under Foreign Contribution Regulations Act (FCRA) has to submit an Annual Return (Form FC-4) to the Ministry of Home Affairs (MHA), online before 31^st December for its foreign fund receipts for the previous financial year.

The MHA has recently done major amendments in the FC-4, the revised FC-4 has been provided in Appendix A, here we have summarized the key features of this revised FC4 form:

1. Darpan ID to be provided in FC-4

Each association was mandated (relaxed a few months ago by FCRA wing) to obtain a Unique ID from the Darpan portal of Niti Aayog. The Darpan ID is now part of the FC4 return. This means one can find more information about the NGO, its mandates, its Board of Trustees, etc., from the Darpan portal, in a relatively easier manner.

However, it OPTIONAL to furnish Darpan ID.

2. Minor amendments in basic requirements related to FCRA registration

In Section 1 of FC-4, earlier it was required to furnish the name of association, same has been removed now. However, an additional requirement to furnish date on which FCRA registration was received has been made mandatory.

3. Bifurcation into Interest Income and Other receipts

Under foreign fund receipts, a new subsection is ‘Other receipts from projects/ activities. Earlier, interest income and other receipts used to be reported together. However, in revised form, other receipts are required to be reported separately.

4. More data to furnished in “donor-wise details of foreign contribution received”

In the section 2 (ii) (a) on ‘donor-wise details of Foreign Contribution received’, the specific activity for which the ‘donation’ was received by the association has been added.

This feature used to be present in the older FC6 form, and it is a positive development that it has been revived in the revised FC4. However, in the erstwhile FC6, the association had to pick from a set of specific categories (which were quite obscure and unimaginative), while in the revised FC4, the association is asked to describe the activity by itself.

Further, under same clause, in old form FC4, only foreign contribution received in excess of Rs. 20,000 was required to be reported. However, the words “in excess of Rs.20,000” has now been removed in revised FC4. This will make reporting mandatory for each and every receipt made during the years.

5. Comprehensive details required in “Details of Utilization of foreign contribution”

The big change is in the section on ‘Details of utilization’. This section too has borrowed from the erstwhile FC6 format but is a lot more comprehensive than that. Here, the FCRA-NGO is asked to submit item-wise details of how much money was spent on which activity, where was it spent and other such details.

Further, unutilized amount invested in term deposits and lying in cash/ bank has been moved to a new section 4 in revised FC4, where, more details like opening FD, Additions, realisation are required for deposits.

6. Creation of assets (movable or immovable) required to be reported under new Section 3(c). Further, all new Section 3(d) requires reporting of Foreign Contribution transferred to other associations.

7. Details of Unutilized land and building (created out of FC funds)

A new section 6 asks for details of unutilized land and building (established with FC funds) for over two years.

In summary, these revisions in the FC4 form are highly welcome. It will increase public limelight and hopefully, scrutiny of deviant associations, since commoners will now be able to relate a publicly visible asset (say an orphanage or a school in one’s street or neighbourhood) with the association readily. Thus, the FCRA Wing of the Ministry of Home Affairs must be applauded for these bold revisions.

Appendix 1

FORM FC – 4

[See rule 17]

Darpan ID***

The Secretary to the Government of India, Ministry of
Home Affairs,
Foreigners Division (FCRA Wing)
Major Dhyan Chand National Stadium, India Gate, New Delhi-110002

***Note: – Furnishing of Darpan ID shall be optional.

Subject: Account of Foreign Contribution (FC) for the year ending on the 31^st March ________

1. FCRA registration/ prior permission number and date:

2. Details of receipt of foreign contribution:

(i) Foreign Contribution received in cash/ kind (value):

(a) Brought forward foreign contribution at the beginning of the year (Rs.):

(b) Income during the year*:

(i) Interest:

(ii) Other receipts from projects/activities:

S No.	Name and location of project/ activity	Year of commencement of the project / activity	Income during the year (Rs.)
1
Total

(c) Foreign Contribution received during the financial year:

(i) Directly from a foreign source:

(ii) From a local source:

(d) Total Foreign Contribution (a+b+c) (Rs.):

* i.e. interest accrued on foreign contribution, or any other income derived from foreign contribution, e.g. sale proceeds from assets created from foreign contribution, or interest thereon during the year, income from projects/activities.

ii (a) Donor wise detail of foreign contribution received:

Sl. No.	Name of donor (s)	Institutional / Individual	Details of the donor: official Address; e-mail address; Website address;	Purpose(s) for which received (Social, Cultural, Educational, Economic, Religious)	Specific Activity/ project	Amount (Rs.)
(1)	(2)	(3)	(4)	(5)	(6)	(7)

(b) Cumulative purpose-wise amount of all foreign contribution donations received:

3. Details of utilisation of foreign contribution:

(a) Details of activities/projects for which foreign contribution has been received and utilised (in rupees)

Sl. No.	Name of project/ activity	Address/ Location	Previous balance		Receipt during the year		Utilised		Balance
			In cash	In kind	In cash	In kind	In cash	In kind	In cash	In kind
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)

(b) Details of utilisation of foreign contribution:

(i) Total Utilisation** for projects as per aims and objectives of the association (Rs.):

(ii) Total administrative expenses as provided in rule 5 of the Foreign Contribution (Regulation) Rules, 2011 (Rs.):

** It is affirmed that the utilisation of foreign contribution is not in contravention of the provisions contained in the Foreign Contribution (Regulation) Act, 2010 (42 of 2010) and more particularly in section 9 and section 12 of the Act which, inter-alia, states that the acceptance of foreign contribution is not likely to affect prejudicially:

(A) the sovereignty and integrity of India; or

(B) the security, strategic, scientific or economic interest of the State; or

(C) the public interest; or

(D) freedom or fairness of election to any Legislature; or

(E) friendly relations with any foreign State; or

(F) harmony between religious, racial, social, linguistic or regional groups, castes or communities.

(c) Total purchase of fresh assets (Rs.)

Sl. No.	Activity in the name of Association	Details	Purpose	Total (in Rs.)
(i)	Creation of movable assets
(ii)	Creation of Immovable assets
	Total

(d) FC transferred to other associations

Sl. No.	Name of the association	Date	Purpose	Amount
(1)	(2)	(3)	(4)	(5)
	Total

(e) Total utilisation in the year (Rs.) (b+c+d):

4. Details of unutilised foreign contribution:

(i) Total FC invested in term deposits (Rs.):

Sl. No.	Details	Total (in Rs.)
(i)	Opening Balance of FD
(ii)	FD made during the year
(iii)	Less: realisation of previous FD
	Closing balance of FD

(ii) Balance of unutilised foreign contribution, in cash/bank, at the end of the year (Rs):

(a) Cash in hand:

(b) in FC designated bank account:

(c) in utilisation bank account(s):

5. Details of foreigners as Key functionary/working/associated:

6. Details of Land and Buildings remained unutilised for more than two years:

Sl. No.	Location of Land and Building	Year of acquisition	Purpose of acquisition	Reason of un-utilisation
(1)	(2)	(3)	(4)	(5)

7. (a) Details of designated FC bank account for receipt of Foreign Contribution (As on 31st March of the year ending):

Name of the Bank	Branch Address (with PIN code)	Phone No.	E-mail	IFSC Code	Account No.	Date of Opening Account
(1)	(2)	(3)	(4)	(5)	(6)	(7)

(b) Details of all utilisation bank accounts for utilisation of Foreign Contribution (As on 31st March of the year ending):

Name of the Bank	Branch Address (with PIN code)	Phone No.	E-mail	IFSC Code	Account No.	Date of Opening Account
(1)	(2)	(3)	(4)	(5)	(6)	(7)

Declaration

I hereby declare that the above particulars furnished by me are true and correct.

I also affirm that the receipt of foreign contribution and its utilisation have not been violative of any of the provisions of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), and the rules, notifications or orders issued thereunder from time to time and the foreign contribution was utilised for the purpose(s) for which the association was granted registration/ prior permission by the Central Government.

Place:

Date:

[Name of the Chief Functionary

(Chairperson/President/Secretary/CEO/MD) in block letters]

(Seal of the Association)

---

Certificate to be given by Chartered Accountant

I/We have audited the account of________________________________________ (name of Association and its full address including State, District and Pin Code, if registered society, its registration number and State of registration) for the financial year ending the 31st March_____________________ and examined
all relevant books and vouchers and certify that according to the audited account:

(ii) foreign contribution of / worth Rs.___________ was received by the Association during the financial year__________ ,

(iii) interest accrued on foreign contribution and other income derived from foreign contribution or interest thereon of/worth Rs.___ was received by the Association during the financial year_ •,

(iv) the balance of unutilised foreign contribution with the Association at the end of the financial year ______ was Rs.__________ ,

(v) Certified that the Association has maintained the accounts of foreign contribution and records relating thereto in the manner specified in section 19 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010) read with rule 17 of the Foreign Contribution (Regulation) Rules, 2011.

(v) The information in this certificate and in the enclosed Balance Sheet and statement of Receipt and Payment is correct as checked by me/us.

(vi) The association has utilised the foreign contribution received for the purpose(s) it is registered/ granted prior permission under the Foreign Contribution (Regulation) Act, 2010 (42 of 2010).

Place:

Date:

Signature of Chartered Accountant

(Seal, Address and Registration number)