The Central Government has introduced the Foreign Contribution (Regulation) Amendment Rules, 2022, effective July 1, 2022. Indians receiving gifts or contributions from foreign relatives exceeding Rs 10 lakh annually must now notify the government within three months.

The FCRA is Foreign Contribution (Regulation) Act. It is an Indian law enacted to regulate the acceptance and utilization of foreign contributions or donations by individuals, associations, and companies. The primary objective of the FCRA is to ensure that foreign funds do not adversely affect the internal security, sovereignty, or integrity of India.

The updated rules aim to prevent foreign funds from supporting activities harmful to national interests. Key changes include:

Increased threshold for reporting foreign contributions from Rs 1 lakh to Rs 10 lakh

Seven amendments to strengthen existing FCRA rules.