With a large number of Indians living abroad these days, the issue of transfer of funds is more than important in today’s times. As per the latest rules, the duration to notify the Indian government regarding overseas transactions has been extended to 90 days instead of 30 days.
Earlier, the amount permitted was just Rs 1 lakh, but now, it has been increased to 1 million or 10 lakh annually from relatives residing overseas as per the new Foreign Contribution (Regulation) Amendment Rules, 2022, by India’s Ministry of Home Affairs.
In 2011, it was said that remittances of Rs 1 lakh in a financial year from any of their relatives were supposed to be informed to the Central Government in Form FC-1 within 30 days from the date of receipt of such contribution.
However, on July 1, 2022, the Ministry of Home Affairs notified the Foreign Contribution (Regulation) Amendment Rules 2022. Meanwhile, the contribution made by NRIs from their personal savings through normal banking channels is not treated as foreign contributions.
Also, as per new rules, registration, or prior intimation under FCRA to receive funds, the amended rules have given individuals and organizations or NGOs 45 days to inform the government about bank account (s) that are to be used for the utilization of such funds. The limit was 30 days earlier.
Well, another important development is that the new amendment has omitted the provision that dealt with declaring foreign funds, including details of donors, the amount received and date of receipt, etc., on its website.
