All about FCRA Annual Return in Form FC-4

Mandatory to file Annual Return in Form FC-4 and time limit to file Form FC-4 return

Rule 17(1) of Foreign Contribution (Regulation) Rules, 2011 mandates that every person who receives foreign contribution under the Act, shall submit a signed or digitally signed report in electronic form in Form FC-4 with scanned copies of income and expenditure statement, receipt and payment account and balance sheet for every financial year beginning on the 1st day of April within nine months of the closure of the financial year.

Therefore, the Form FC-4 are required to be filed on or before 31st December for the previous financial year.

For the FY 2019-20, the original due date for filing of FC-4 was 31st December 2020 (as per rule 17(1)). However, the same was extended to 30th June 2021 through vide Public Notice dated 23rd November, 2020.

Rule 17(8) also mandate that NIL report shall be furnished even if Foreign Contribution was received during a financial year.

Documents to be submitted with Annual Return in Form FC-4

Certificate from the Chartered Accountant (not required if no Foreign Contribution received or utilised during the financial year)
Audited Accounts includes Balance Sheet, income & expenditure account and receipt & payment account (not required if no Foreign Contribution received or utilised during the financial year)
Declaration by chief functionary (Chairperson/President/Secretary/CEO/MD) - this declaration is part of Form FC-4

Copy of statement of account from the bank - where exclusive foreign contribution account is maintained by the person, duly certified by an officer of such bank.

Late Filing Fees / Penalty of Form FC-4

Notification SO 2133(E) dated 16-June-2016 provide the amount of penalty as under.

S.N	Offence	Amount of Penalty	Officer competent for compounding
1	Non-furnishing of return up to three months after the 31st December every year.	Penalty of 2% of the amount of foreign contribution received during the financial year or Rs. 10,000, Whichever is less.	The Director or the Deputy Secretary in Charge of the Foreign Contribution (Regulation) Act Wing of Foreign Division in the Ministry of Home Affairs.
2	Non-furnishing of return after three months up to six months after the 31 December every year.	Penalty of 3% of the amount of foreign contribution received during the financial year or Rs. 50,000, Whichever is less.	The Director or the Deputy Secretary in Charge of the Foreign Contribution (Regulation) Act Wing of Foreign Division in the Ministry of Home Affairs
3	Non-furnishing of return after six months up to one year after the 31 st December every year	Penalty of 4% of the amount of foreign contribution received during the financial year or Rs. 2 Lakh, Whichever is less.	The Director or the Deputy Secretary in Charge of the Foreign Contribution (Regulation) Act Wing of Foreign Division in the Ministry of Home Affairs.
4	Non-furnishing of return after one year up to two years after the 31 December every year	Penalty of 5% of the amount of foreign contribution received during the financial year or Rs. 5 Lakh, Whichever is less.	The Director or the Deputy Secretary in Charge of the Foreign Contribution (Regulation) Act Wing of Foreign Division in the Ministry of Home Affairs.
5	Non-furnishing of return after two years up to three years after the 31st December every year.	Penalty of 10% of the amount of foreign contribution received during the financial year or Rs. 10 Lakh, Whichever is less.	The Director or the Deputy Secretary in Charge of the Foreign Contribution (Regulation) Act Wing of Foreign Division in the Ministry of Home Affairs.