The FC-4 return is a critical compliance requirement under the Foreign Contribution (Regulation) Act (FCRA), 2010, applicable to organizations receiving foreign contributions in India. Chartered Accountants (CAs) play an essential role in certifying the return, ensuring accuracy, and facilitating seamless compliance.
What is the FC-4 Return?
The FC-4 return is an annual filing mandated by the Ministry of Home Affairs (MHA), Government of India. It details the receipt and utilization of foreign contributions by NGOs, charitable trusts, and other eligible organizations registered under the FCRA. The return must be submitted online through the FCRA portal.
Who Must File the FC-4 Return?
Any organization registered or granted prior permission under the FCRA must file the FC-4 return annually, even if no foreign contribution was received during the financial year.
A. Key Compliance Deadlines :
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Filing Due Date:
December 31 following the end of the financial year. -
Penalty for Non-Compliance:
Non-filing or incorrect filing may result in penalties, cancellation of FCRA registration, and legal proceedings.
B. Details Required in FC-4 Return
The FC-4 return requires comprehensive disclosures, including:
- Foreign contributions received (amount, currency, source)
- Purpose of utilization (projects, administrative expenses)
- Bank account details of designated FCRA accounts
- Assets created or acquired using foreign funds
- Audited financial statements
C. Role of CA Certification in FC-4 Filing
Chartered Accountants play a crucial role in certifying the financial statements and returns for FCRA compliance. Their responsibilities include:
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Verification of Financial Records
CAs examine financial records, ensuring all receipts and expenditures of foreign contributions are accurately recorded. -
Audit of Statements
Auditing financial statements as per FCRA guidelines, ensuring transparency and accountability. -
Certification of Accuracy
Issuing a certification stating that the details filed in FC-4 are true and comply with applicable laws. -
Ensuring Regulatory Compliance
Advising organizations on maintaining proper records and addressing compliance gaps. -
FCRA Act Compliance
Foreign Contribution (Regulation) Act amends rules 2024, w.e.f 01-01-2025. Now CA Certificate in form FC-4 will have to point out non-compliance of any provisions of the act and rule made thereunder.
D. Best Practices for Filing FC-4 Return
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Maintain Proper Records
Keep detailed financial records and supporting documents. -
Engage CAs Early
Consult experienced CAs well in advance to avoid last-minute filing issues. -
Stay Updated
Regularly check for updates in FCRA regulations and guidelines. -
Audit Readiness
Conduct periodic internal audits to ensure compliance throughout the year.
Conclusion
Filing the FC-4 return accurately and on time is crucial for organizations receiving foreign contributions. CA certification ensures the return’s reliability, minimizing compliance risks. Collaborating with skilled Chartered Accountants simplifies the filing process, ensuring continued eligibility for foreign contributions while maintaining transparency and trust with stakeholders.
