How Much Amount an NRI Send to A Friend in India Now
The Indian government had changed the limit of the amount a Non-Resident Indian can send to a non-blood-relative. The Ministry of Home Affairs has changed a few rules related to the Foreign Contribution (Regulation) Act (FCRA) recently. As per the information released in this regard at the beginning of July 2022, an Indian can receive up to Rs 10 lakh in a year. From relatives staying abroad without informing the authorities.
The amount earlier was having an upper limit of Rs 1 lakh. The notification from the Home Ministry informs that in case of more amount was received, the time limit to inform the government is increased to 90 days from earlier 30.
The revised rules related to Foreign Contribution (Regulation) Amendment – 2022, are published through a gazette notification on 01 July 2022.
The amendment of Rule 6 that describes funds received from relatives reads:
“In the Foreign Contribution (Regulation) Rules, 2011, in rule 6, — for the words “one lakh rupees”, the words “ten lakh rupees” shall be substituted; and for the words “thirty days”, the words “three months” shall be substituted,” the notification said.
The previous description of the rule was: “any person receiving foreign contribution in excess of Rs 1 lakh or equivalent thereto in a financial year from any of his relatives shall inform the central government (details of funds) within 30 days from the receipt of such contribution”.
How Much Amount an NRI Send to A Friend in India Now
Not only Rule 6 but there is a change in Rule 9 that deals with the application of obtaining ‘registration’ or ‘prior permission’ under the FCRA to receive funds, the amended rules have given individuals and organizations or NGOs 45 days to inform the home ministry about bank account (s) that are to be used for utilization of such funds. This time limit was 30 days earlier.
There is a change in Rule 13 also. The provision ‘b’ in the rule had been removed. This had details of declaring foreign funds including donor’s details, amount received, date of receipt, etc. every quarter on its website. As per new changes, anyone receiving foreign funds under the FCRA must follow the existing provision of submitting the audited statement of accounts on receipts and utilization of the foreign contribution. Also, this should include income and expenditure statement, receipt and payment account, and balance sheet for every financial year beginning on the first day of April. This must be done within nine months of the closure of the financial year, on its official website, or on the website as specified by the government.
In the event of a change in bank account details, name, address, aims or key members of the organization (s) receiving foreign funds, the same can be informed to the government within 45 days of the change. Earlier, the time period given was only 15 days.
How Much Amount an NRI Send to A Friend in India Now
There was a tough amendment to the FCRA rule in the month of November 2020 by the Ministry of Foreign affairs. Then it stated to all NGOs that, they may not be directly linked to a political party but engage in political action like bandhs, strikes, or road blockades will be considered of political nature if they participate in active politics or party politics.
In this, all organizations including farmers’ organizations, students, workers’ organizations, and caste-based organizations are covered. Also, the amendment of FCRA restricted public servants from receiving foreign funding and made Aadhaar mandatory for every office-bearer of NGOs.
The amended law also clarifies that organizations receiving foreign can use only 20% of the same for administrative expenses. Administration-related exepnses were limited at 50% earlier.
All NGOs receiving funds must be registered under FCRA as per the MOFA rules.
How Much Amount an NRI Send to A Friend in India Now