1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9, A BRIEF STUDY OF FOREIGN
Raheja Towers,
26-27, M G Road, CONTRIBUTION
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 (REGULATION)ACT,2010
COIMBATORE
#1533, Trichy Road,
Coimbatore, India – 641018. - by N.PRASSANVADANA, ALTACIT GLOBAL
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

2. SHORT CONTENT OF THE ACT
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road, • An Act to consolidate the law to regulate the acceptance of
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
foreign contribution/hospitality by certain individuals,
BANGALORE
associations or companies and thus to protect national
Suite 920, Level 9,
Raheja Towers,
interest. This Act is to be read together with Foreign
26-27, M G Road,
Bangalore - 560 001. Contribution Regulation Rules, 2011.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore, India – 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

3. APPLICABILITY: Sec.1
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE • Extends to whole of India;
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
• Citizens of India outside India;
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 • Associate branches or subsidiaries outside India of
COIMBATORE
#1533, Trichy Road,
Companies registered/incorporated in India.
Coimbatore, India – 641018.
Tel: +91 - 422 – 6552921 • Applicable to Individuals, Associations, Companies,
Non-Profit, Non-Governmental Organizations who
receive Foreign Contribution/Hospitality .
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

4. WHAT IS FOREIGN CONTRIBTION/HOSPITALITY:
Sec.2
CHENNAI
3rd Floor, ‘Creative Enclave’, • Foreign contribution means donation/delivery/transfer made by
148-150, Luz Church Road,
Mylapore, any foreign source,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821 – Of any article not being an article of gift to a person for his
BANGALORE
Suite 920, Level 9,
personal use, the value of which is within the value specified
Raheja Towers,
26-27, M G Road, by Central Govt. from time to time.
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 – Of any currency Foreign or Indian, or any security/foreign
COIMBATORE
#1533, Trichy Road,
security as defined by FEMA or any governing law in force.
Coimbatore, India – 641018.
Tel: +91 - 422 – 6552921 – Foreign hospitality means offer made in cash or kind for
providing a person with cost of travel, boarding, lodging,
including but not limited to medical treatment in a Foreign
country.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

5. WHAT CONSTITUTES FOREIGN SOURCE: Sec.2
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
• Govt. of any Foreign country/territory and it’s Agents.
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
• International Agency not being UNO or it’s specialized
BANGALORE
agencies.
Suite 920, Level 9,
Raheja Towers, • Foreign Company, MNC, a corporation not being a foreign
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
company incorporated in a foreign country or territory;
COIMBATORE • Company within the meaning of Companies Act 1956(sec.1 of
#1533, Trichy Road,
Coimbatore, India – 641018. 1956) if more than half of its share capital is held by a Foreign
Tel: +91 - 422 – 6552921
country, company, corporation, trusts, society , association or
foreign citizen.
• Any corporation, trusts, association, society, trade union,
club, organization or individual incorporated in a Foreign
country.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

6. WHO CANNOT RECEIVE FOREIGN CONTRIBUTION:
Sec.3
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
• Election candidates, office bearers of political parties, any
Mylapore,
Chennai - 600 004. person/organizations on behalf of political parties.
Tel: +91 - 44 - 2498 4821
BANGALORE
• Members of Press including Owners, Publishers ,Printers of
Suite 920, Level 9,
Raheja Towers,
regd. Newspapers, and nd journalists.
26-27, M G Road,
Bangalore - 560 001. • Judges, Government servants, Legislative Members.
Tel: +91 - 80 - 6546 2400
COIMBATORE • Organisation of a political nature as specified under
#1533, Trichy Road,
Coimbatore, India – 641018. Sec.5(1).
Tel: +91 - 422 – 6552921
• Association or company engaged in broadcast/production
of audio, visual news by any electronic mode or form as
defined under Sec.2(1)(r) of Information Technology Act,
2000,
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

7. WHICH OF THE TRANSACTIONS FALL OUTSIDE THE
PURVIEW OF FCRA: SEC:4
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road, • Government transactions, direct or through Agents.
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821 • Scholarships to Indian students, Tuition fees from foreign
BANGALORE students.
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
• Salary, wages, remuneration due to employees from an
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 organization.
COIMBATORE
#1533, Trichy Road,
• Amounts received from relatives.
Coimbatore, India – 641018.
Tel: +91 - 422 – 6552921 • Payments for goods received, services given in the ordinary
course of business or under FEMA.
• Gift or presentation made to member of Indian Delegation
made in accordance with rules made by Central Govt.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

8. RESTRICTIONS AND EXCEPTIONS UNDER THE ACT:
Sec.6,7, ,9.
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road, • Prohibition to transfer Foreign Contribution to other person.
Mylapore,
Chennai - 600 004. • Receipt of FC from relatives in excess of Rs.1 Lakh must be informed to
Tel: +91 - 44 - 2498 4821
Central Govt.
BANGALORE
Suite 920, Level 9,
• Exemption in certain cases of emergency medical treatments.
Raheja Towers,
26-27, M G Road, • Prohibitions by Central Government in the national interest.
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 • Restrictions on Government servants, Judges, members of legislature
COIMBATORE
etc. from accepting Foreign Hospitality except in cases of sudden illness.
#1533, Trichy Road,
Coimbatore, India – 641018.
• Prior permission of central government needed by organizations of a
Tel: +91 - 422 – 6552921 political nature.
• No person who is registered or granted prior permission under this Act
and receives any foreign contribution can transfer such foreign
contribution to another person unless that person is also registerred,
granted prior permission under this Act.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

9. RESTRICTION ON UTILIZATION OF FOREIGN
CONTRIBUTION: Sec.8
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
• Foreign Contribution :
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
– shall be utilized only for the purpose for which its been
BANGALORE
received.
Suite 920, Level 9,
Raheja Towers, – FC shall not be used for buying/selling shares, property,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
chits, loans.
COIMBATORE – Shall not be used for administrative expenses, an amt.
#1533, Trichy Road,
Coimbatore, India – 641018. exceeding 50%
Tel: +91 - 422 – 6552921
– Shall maintain a separate register of investments for audit.
What is not covered by ‘administrative expenses’:
– Salaries of training personnel.
– Expenses on collection of field data.
EMAIL – Salaries of doctors of Hospital, teachers of school, if the
info@altacit.com
same is a welfare organization.
WEBSITE
www.altacit.com

10. REGISTRATION UNDER FCRA,2011: Sec.11 to 14 ,AND
OTHER PROCEDURES
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road, • Conditions for:
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821 – registration sec.11.
BANGALORE
Suite 920, Level 9,
– Eligibility for registration.
Raheja Towers,
26-27, M G Road, – Procedure of registration.
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
– Documents to be filed.
COIMBATORE
#1533, Trichy Road, – Grant of registration.
Coimbatore, India – 641018.
Tel: +91 - 422 – 6552921
– Suspension of registration.
– Cancellation of registration.
Receipt and Accounts of foreign Contribution: Sec. 17 to
24
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

11. PENALTIES FOR VIOLATION OF FCRA,2011: Sec:33 to
Sec.35
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road, • Making false statement, declaration or maintaining false accounts:
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
– Any person who knowingly under Sec.9(c), Sec.18 gives false intimation,
or;
BANGALORE
Suite 920, Level 9, – Seeks prior permission or registration by means of fraud, false
Raheja Towers,
26-27, M G Road, representation or concealment of material fact,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 – Shall be liable on conviction to imprisonment up to 6 months or with
COIMBATORE fine or both.
#1533, Trichy Road,
Coimbatore, India – 641018. • Sec. 34-Penalty for FC obtained in contravention of prohibition under sec.
Tel: +91 - 422 – 6552921
10.
• Sec.35-Whoever accepts any person, political party or organization in
accepting , any foreign contribution or currency or security from a foreign
source in contravention of any provision off this Act shall be punished with
imprisonment of a term which may extend up to 5 years and fine or both.
• Fines under Sec.36.
EMAIL • Sec.37-Punishment for contravention of any provision of the act.
info@altacit.com
• Seizure of any FC received in contravention of the act,(sec.25).
WEBSITE
www.altacit.com
• Other guidelines to describe political parties/groups under FCRA,2010.

12. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
THANK YOU.
Coimbatore, India – 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com