InvestorQ : Can you explain to me about the new rules allowing Indians to receive up to Rs10 lakhs from relatives abroad?
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Can you explain to me about the new rules allowing Indians to receive up to Rs10 lakhs from relatives abroad?

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Riya Dwivedi answered.
1 month ago
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Last week, the Union Home Ministry amended rules related to the Foreign Contribution (Regulation) Act (FCRA) which now allows Indians to receive up to Rs10 lakh annually from their relatives staying abroad. Earlier, they could only get up to Rs1 lakh from abroad without informing the authorities and that limit now stands enhanced to Rs10 lakhs. Also, the time limit to inform the authorities now would be 90 days instead of the erstwhile 30 days. These have been put out as part of a special amendment to the FCRA.

To simplify matters, the central government omitted provision 'b' in rule 13, which called for elaborate declaration on foreign funds including specific details of donors, amount received, and date of receipt on a quarterly basis. Now, under the FCRA, they can just place the audited statement of accounts on receipts and utilisation of foreign contribution, including income and expenditure statement, every financial year. In the case of NGO, the time limit for reporting has been increased from 15 days to 45 days.

It may be recollected that in November 2020, the Home Ministry had made FCRA rules tougher to dissuade NGOs from using foreign funds to organize bandhs, strike or road blockades. It also bars such fund usage for any active politics or party politics. This will apply to organisations of students, workers, caste-based organisations etc. Only 20% of the funds received from abroad can be used by an NGO for administrative purposes. According to the amended rules, all NGOs receiving funds have to be mandatorily registered under the FCRA.

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