All about Form FC-4: FCRA Annual Return

Last updated: 01 June 2021

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Quick Summary

Form FC-4 is the mandatory annual return for any entity receiving foreign contributions under the Foreign Contribution (Regulation) Act, 2010. It must be filed within nine months of the financial year's end, typically by 31st December. Even if no foreign contribution was received, a 'NIL' return is still required. Recent amendments necessitate opening a specific FCRA bank account, uploading Aadhaar details of key personnel, and obtaining a Darpan ID.

Applicability

As per Rule 17 of the Foreign Contribution (Regulation) Rules, 2011, every person who receives foreign contribution under the Foreign Contribution (Regulation) Act, 2010, shall submit a signed or digitally signed report in Form FC-4 for every F.Y.

Due Date

FC-4 shall be filed within 9 months from the end of the F.Y. i.e., 31^st December of every year.

Further, vide Notification No. 11/21022/23(15)/2020-FCRA-III, dtd. 23^rd November, 2020, the MHA extended time for uploading FC-4 for the year 2019-20 up to 30^th June, 2021.

NIL Return: Even if FCRA NGOs do not receive foreign contribution filing a NIL Return is mandatory.

Foreign Contribution (Regulation) Amendment Act, 2020

As per the amended provisions of the Act and Rules made thereunder, the FCRA registered associations and prior permission (PP) holders, as well as prospective seekers of registration or PP, are required to meet, inter alia, the following conditions:

Open a mandatory FCRA Account in the State Bank of India, New Delhi Main Branch, 11, Sansad Marg, New Delhi- 110001;
Upload Aadhaar details of all office bearers or Directors or other key functionaries by whatever name called;
Upload affidavits of all members as prescribed in rule 9(1)(a) of the Foreign Contribution (Regulation) Rules, 2011 &
Obtain Darpan ID from DARPAN Portal of NITI Aayog of the NGO/Association.

Form FC-4: Your Guide to FCRA Annual Return Filing

Attachments

Certificate from a CA
Declaration Certificate of Chief Functionary
Audited Statement of Accounts
Statement of Account from Bank duly certified by officer of such bank
Signature of Chief Functionary
Seal of the Association

*The term 'Chief Functionary' has not been defined in the FCRA Act or Rules. Normally the head of the organization should be construed as the Chief Functionary. The organization may also designate any office bearer as the Chief Functionary through a General Body/Governing Body resolution, for the purposes of filing the FCRA returns, forms etc.

Default

S. N.	Offence	Penalty
1	Non-furnishing of return up to 3 months after 31^st December of every year.	Lower of the following: 2% of foreign contribution received during F.Y. Rs. 10,000
2	Non-furnishing of return after 3 months up to 6 months after 31^st December of every year.	Lower of the following: 3% of foreign contribution received during F.Y. Rs. 50,000
3	Non-furnishing of return after 6 months up to 1 year after 31^st December of every year.	Lower of the following: 4% of foreign contribution received during F.Y. Rs. 2,00,000
4	Non-furnishing of return after 1 year up to 2 years after 31^st December of every year.	Lower of the following: 5% of foreign contribution received during F.Y. Rs. 5,00,000
5	Non-furnishing of return after 2 years up to 3 years after 31^st December of every year.	Lower of the following: 10% of foreign contribution received during F.Y. Rs. 10,00,000

Disclaimer: The author is based in Jabalpur and is a Practicing Company Secretary dealing in Corporate, Legal & Taxation services. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Author recommends that professional advice is sought before taking any action on specific issues.

The author can also be reached at cstanveersaluja@gmail.com