Compounding of offences along with penalties
| S. No. | Offence | Penalty | Comments, if any |
| 1. | Accepting Hospitality without Permission | Rs 10,000/- | Introduced in 2018, no change in 2022 |
| 2. | Transfer of FC to a person who does not have FCRA / Prior Permission | Rs 1 lakh or 30% of FC trfd, whichever is higher. | Please note after amendment in 2020, now there is no scope of transfer of funds to another partner, whether having FCRA or not. However if someone still transfers funds, compounding option is still available after 1-7-2022 but only once. Repeat transfers have been taken out of scope of compounding and also compounding rate increased to 30%. |
| 3. | Violating 20%limit on Admin Exps. (S. 8) | Rs 1 lakh or 5% of excess amount spent on Admin., whichever is higher. | Amendment made to give effect to 20% amendment made in the Act, during 2020. |
| 4. | Accepting FC without registration or Prior Permission (S. 11) | Rs 1 lakh or 10% of amount so accepted whichever is higher. | No change. |
| 5a. | Accepting FC in any account other than designated account. | Rs 1 lakh or 5% of amount so accepted whichever is higher. | No change. |
| 5b. | Non-reporting of FC by banks and concerned entity. | Rs 1 lakh or 3% of amount so rec’d or deposited whichever is higher. | No change. |
| 5c. | Non-FCRA funds deposited in designated / utilization accounts. | Rs 1 lakh or 2% of amount so deposited whichever is higher. | No change. |
| 6. | Non-intimation of FC in the manner as prescribed under S.18 | Rs 1 lakh or 5% of amount so rec’d during non-submission period, whichever is higher. | No change. |
| 7. | Non-maintenance of account and records as per S.19 of the Act. | Rs 1 lakh or 5% of FC during non-maintenance period, whichever is higher. | No change. |
| 8. | Non-intimation of FC within the prescribed time limit | 5% of such FC rec’d in a FY | New |
| 9. | Failure to intimate about opening of bank account/s within prescribed limit. | Rs 10,000 per utilization account within prescribed time-limit. | New |
| 10. | Failure to intimate of changes covered under Rule 17A within prescribed time limit. | Rs 10,000 for each violation within prescribed time-limit. | New |
| 11. | Failure to put on website audited FCRA financial statements within 9 months. | Rs 10,000 for each violation | New |
Notes:
1- The amount of penalty shall not be more than the value of the foreign contribution received.
2- Changes mentioned above effective from 1-7-2022.
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