FCRA Form FC4 has been amended vide FCRA Amendment Rules 2024. These amendments are summarised below.
- Unspent Admin Expenses: If an entity has not spent allowable 20% of the FCRA funds received in a year, unspent part can be carried forward to next year. Thus say, an Association has received Rs 1 crore as FC receipts during FY 2024-25 and therefore at the maximum is allowed to spend Rs 20 lakh under Admin Heads. If it spends, say Rs 15 lakh only during FY 2024-25, new rules enable it to carry forward Rs 5 lakh to next year (FY 2025-26).
- Details of Chartered Accountant certifying FC4: Now details of chartered accountant who provides FC4 certificate are to be given in FC4. Details include Name, address, Member Registration No., Email address, Date of Issue of certificate, In case any violations pointed out then these need to be specified in the FC4.
- Chartered Accountant Certificate format amended: Now CA certificate needs to state that there are no violations, and in case there are violations, then these violations need to be specified.
- TDS refund rec’d in non-FCRA Bank A/c can be transferred to FCRA Bank A/c: FCRA authorities have vide Public Notice dt. 31/12/2024 have allowed to transfer any TDS refund received in non-FCRA account to be deposited in FCRA Bank a/c. In case the refund covers both FCRA deposits as well as non-FCRA deposits, than appropriate proportion of the same can be transferred to FCRA bank account from non-FCRA Bank account. FC4 has been suitably amended to disclose such refunds separately.
SRRF Dialogue Comment: Above changes reflect two major developments.
- By clarifying on TDS issue being deposited in non-FCRA Bank a/c, FCRA Dept for first time has shown some responsiveness to issues being raised by Associations. Hope there will be more such responsiveness by the Dept, on part of Associations, they should write more regularly to the Dept, wherever they face problems.
- On the line of Form 10B, FCRA Dept is also making Chartered Accountants specify that there are no violations, and if violations are there, these need to be specified. Thus the Dept forcing Chartered Accountants to be more accountable.
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