The Ministry of Home Affairs (MHA) has taken significant steps to enhance transparency in the operations of not for profit entities registered under the Foreign Contribution Regulation Act, 2010 (FCRA Act). These changes introduced via Foreign Contribution (Regulation)Amendment Rules, 2023, are effective from 25th September 2023 and focus on detailed disclosures related to assets funded by foreign contributions.
As per the latest amendment, MHA has updated certain disclosures in Form FC-4 (i.e., FCRA annual return). The updated form now requires entities to disclose details of their movable and immovable assets that were created using foreign contributions. The disclosure regarding assets required under Form FC-4 is reproduced below for reference:
- Details of movable assets created out of foreign Contributions (as of 31st March of the Financial Year) shall include:
- Description of the assets;
- Value as of the beginning of the Financial Year (in INR),
- Value of assets acquired during the Financial Year (in INR),
- Value of assets disposed of during the Financial Year (in INR) and
- Value as per the balance sheet at the end of the Financial Year.
- Details of immovable properties acquired out of foreign contribution (as of 31st March of the Financial Year) shall include:
- Details of immovable assets (Land /Buildings etc.)
- Location (Complete address)
- Value as per the balance sheet (in Rs.)
These amendments appear to enhance transparency and accountability in the utilization of foreign contributions by requiring organizations to provide more comprehensive information about their movable assets and immovable properties. It’s important for FCRA-registered entities to ensure compliance with these new reporting requirements to avoid any issues.
You may access the link for the relevant notification: https://egazette.gov.in/WriteReadData/2023/248983.pdf