Govt allows Indians to receive up to Rs. 10 lac from relatives residing abroad
PremiumIndians are now permitted to receive up to Rs. 10 lakh annually from relatives who live overseas without notifying the authorities.
Indians are now permitted to receive up to Rs. 10 lakh annually compared to the earlier limit of ₹1 lakh from relatives who live overseas without notifying the authorities, thanks to changes made by the Union Home Ministry to certain provisions relating to the Foreign Contribution (Regulation) Act (FCRA).
The home ministry also stated in a statement that instead of 30 days, if the amount surpasses, the individuals would now have 90 days to notify the government. The home ministry published a gazette notification of the new regulations, Foreign Contribution (Regulation) Amendment Rules, 2022, on Friday. The disclosure of receiving foreign funds from relatives is covered under Rule 6.
"In the Foreign Contribution (Regulation) Rules, 2011, in rule 6, — for the words “one lakh rupees", the words “ten lakh rupees" shall be substituted; and for the words “thirty days", the words “three months" shall be substituted," the Union Home Ministry has said in a notification.
In the earlier notification, the Home Ministry clarified that “any person receiving foreign contribution in excess of ₹1 lakh or equivalent thereto in a financial year from any of his relatives shall inform the central government (details of funds) within 30 days from the receipt of such contribution".
Furthermore, the updated regulations have given individuals and organizations or NGOs 45 days to inform the home ministry concerning bank account (s) that are to be handled for effective utilization of such finances. Rule 9 deals with the application of receiving "registration" or "prior permission" under the FCRA to receive funds. This time frame expired thirty days ago.
Provision "b" of Rule 13—which mandated the central government to disclose on its website quarterly declarations of overseas money with donor details, the amount received, the date of receipt, etc.—has also been redacted by the government.
Anyone receiving financial support from overseas under the FCRA will now need to abide by the existing prerequisite to submit the audited statement of accounts on receipts and utilisation of the foreign contribution, including income and expenditure statement, receipt and payment account, and balance sheet for each financial year beginning on the first of April, within nine months of the financial year's end, on its official website or on the website as specified by the Center. A condition that an NGO or an individual receiving foreign funds required to disclose such contributions on its official website every three months has also been eliminated. The home ministry now gives organisations receiving foreign funds 45 days instead of 15 days to notify it of changes to their bank account, name, address, aims, or key personnel.
The home ministry strengthened the FCRA regulations in November 2020, clearly stating that NGOs that may not be directly associated with a political party but participate in a political intervention such as bandhs, strikes, or road blockades will be regarded as having a political nature if they participate actively in politics or party politics. Farmers' organisations, student organisations, labour organisations, and caste-based organisations are among the organisations included in this category.
Government officials prohibited public employees from accepting foreign money under the FCRA amendment, and they made Aadhaar a prerequisite for all NGOs' office holders. According to the new regulation, organisations that receive foreign funding are not permitted to utilise more than 20% of those funds for administrative needs. Before 2020, this percentage was capped at 50%. All NGOs that receive funding are required by law to register with the FCRA.
With inputs from PTI.