Aug 19, 2026 Circulars & Notifications Attachment Link
FCRA Rules 2026 – Cancellation Due to No Reasonable Activity
The Foreign Contribution (Regulation) Amendment Rules, 2026 have introduced a monetary threshold for determining “reasonable activity” by organizations registered under FCRA. The new Rule 14A provides that an organization shall be deemed to have undertaken reasonable activity if it has utilized at least Rs. 10 lakh of foreign contribution in the last two financial years.
This issue examines the scope and implications of the new utilization requirement, including the treatment of unspent foreign contribution, use of capital assets, in-kind contributions and its implications for smaller grassroots organizations. It also highlights the concerns arising from the continuous two-year requirement and its implications for cancellation and renewal of FCRA registration.
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