The Ministry of Home Affairs has released a new Notification dated 31.12.2024 promulgating numerous amendments to the Foreign Contribution (Regulation) Rules, 2011, providing relevant associations the option to carry forward the unspent part of allowable administrative expenses in a financial year towards the financial year immediately succeeding the relevant financial year.
Coinciding with New Year’s Eve, the effects of the Notification are poised to come into force from the 1st day of January, 2025. While the proviso added to Rule 5 of the Foreign Contribution (Regulation) Rules, 2011 permits associations to carry forward the unspent part of allowable administrative expenses in a financial year to the succeeding year, the same has to be duly backed reasons to be mentioned in Form FC-4.
Additionally, a sub-point (iv) has been inserted to Serial No.2 of Form FC-4 wherein Associations may list down the specific Particulars and respective unspent part of allowable administrative expenses that have been carried forward into the succeeding financial year.
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The amendments outline a detailed structure for tracking and reporting administrative expenses, including the brought forward unspent part, total foreign contributions received, allowable expenses (20% of contributions), expenses utilized from both current and carried forward allowances, and the unspent portion to be carried forward. Organizations must also provide reasons for carrying forward unspent amounts in their annual filings.
A new insertion via Serial No.9 in Form FC-4 requires the details and particulars of the concerned Chartered Accountant to be filled in as well. Details include name of the Chartered Accountant, Address, Member Registration Number, E-mail Address, Date of issue of certificate, and also ‘Whether any violation of the Act has been pointed out in certificate, and if so, details thereof’.
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The addition also provides an attestation to be duly filled in by the concerned Chartered Accountant affirming whether the Association had committed any violation of the Foreign Contribution (Regulation) Act, 2010 and rules or notifications made thereunder.
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