* Category includes ratification, accession, or succession to the treaty

Article 19 of the Constitution of India guarantees the following six freedoms:

1. Freedom of speech and expression, which allows an individual to take part in public activities. Though the words “freedom of press” are not mentioned in Article 19, “freedom of expression” also encompasses “freedom of press.” However, reasonable limitations can be imposed to maintain public order and to protect decorum and the dignity of the State.
2. Freedom to assemble peacefully without arms, though the State can enforce reasonable limitations to maintain public order and the autonomy and integrity of India.
3. Freedom to form associations or unions, with certain restrictions enforced by the State in the interest of public order, morality, and the sovereignty and integrity of India.
4. Freedom to move freely throughout the territory of India, subject to certain restrictions to maintain the interest of the general public. For instance, the state can restrict travelling or commuting during epidemics to prevent disease from spreading.
5. Freedom to live and settle in any part of the territory of India, subject to certain limitations by the State to maintain the interest of the general public or to safeguard the rights of the native ‘scheduled tribes’ and protect them from exploitation and oppression.
6. Freedom to practice any profession or to carry on any occupation, trade or business. Here the state may impose justified limitations to protect the general public. For example, nobody has the right to run a hazardous or corrupt business. Professional or technical qualifications may be required to practice any profession or carry out any particular business.

Non-profit organisations in India must not engage in political campaign activities or legislative activities. Indian not-for-profit entities may “lobby” for non-political causes, provided that such activity promotes “general public utility” and is incidental to the attainment of the charity’s objects. Under Section 20 of the Societies Registration Act of 1860, societies may have the diffusion of political education as their primary objective. In addition, under the Foreign Contributions Regulation Act, not-for-profit organizations involved in political activities cannot receive foreign contributions.

Relevant national-level laws and regulations affecting civil society include:

1. Indian Trusts Act 1882
2. Societies Registration Act 1860
3. Maharashtra Public Trusts Act 1950 (state-level)
4. Foreign Contribution Regulation Act 2010
5. Indian Companies Act 2013
6. Direct Tax Code (replacing the Income Tax Act 1961)
7. Foreign Contribution Regulation Amendment Rules 2015
8. Goods & Service Tax Act 2017
9. Finance Act 2020
10. Foreign Contribution Regulation Amendment Act 2020
11. Digital Personal Data Protection Act, 2023

1. Union Budget and Finance Bill 2025 (Finance Bill, 2025)

The Union Budget and Finance Bill 2025 (Finance Bill, 2025) is likely to be passed by April 2025. It was introduced to Parliament in February 2025 and increases the period of validity of registration of a trust or institution with income below Rs. Five Crore ($50 million) from five to ten years. This is particularly enabling for small trusts or institutions whose total income does not exceed Rs. Five crores in each of the two previous years or the previous year before which the application was made. However, this will not apply to the provisional registration of new trusts, for which registration is granted for three years. In addition, it seems that small trusts whose approval is valid until March 31, 2026 may still have to apply for renewal by September 30, 2025, but the renewal granted to them will be for ten years.

Other notable changes include the following:

• In order to prevent harsh penalties for filing incomplete applications, an amendment has been made to give a trust or institution the opportunity to complete an application for the purposes of registration. In other words, applications which were either incomplete or with false information were grounds for rejection by Income Tax Officers. Now, an application shall not be rejected on the basis of incomplete information, although rejection shall occur in case of false information.
• The threshold limit for considering a contribution as a ‘substantial contribution’ to a trust or institution has been changed from a total contribution exceeding 50,000 rupees ($575) up to the end of the relevant previous year to one lakh rupees ($1150) during the relevant previous year, or exceeding ten lakh rupees ($11500) in aggregate up to the end of the relevant previous year. This amendment shall be applicable to any person other than the author, founder, trustee, member or manager of the trust. As a result, if any income of a trust or institution is applied for the benefit of a ‘specified person’, i.e., a person who contributes more than one lakh rupees during the relevant previous year, or exceeding ten lakh rupees in aggregate up to the end of the relevant previous year, such income shall not be exempted under section 11 and 12 of the Income Tax Act, 1961.

2. Restrictive Right to Information Amendments

The Right to Information (Amendment) Bill, 2019 passed in both the lower (Lok Sabha) and upper house (Rajya Sabha) in July 2021, and will become law once it receives presidential assent. The Bill amends India’s Right to Information Act, 2005 by allowing the central government to decide the tenure and conditions for information commissioners at both central and state levels. Experts say that these measures will dilute the law, reduce transparency, and take away the autonomy of the Central Information Commission (CIC), which is the highest appellate body on information applications. Seven former Information Commissioners have come together and outlined their opposition to the amendments, which were introduced in a secretive manner and handed to lawmakers only two days before they were tabled, with the government completely skipping the mandatory public disclosure and consultation process.

3. New Grounds for Cancelling Tax-Exempt Status of Nonprofits in India

The Finance Act, 2019 amended the Income Tax Act, 1961 by adding grounds on which the tax-exempt status of a nonprofit could be cancelled. In particular, under the Act (as amended), a nonprofit could lose its tax-exempt status at the discretion of the Tax Principal Commissioner or Commissioner if the nonprofit has violated any law material to achieving its objectives. This proposal threatens the independence of the nonprofit sector as it gives the government wide discretion to cancel the tax-exempt status of a nonprofit for even minor violations of the law. Please see Account Aid and the Centre for Advancement for Philanthropy for detailed write ups on this proposed change.

4. Unique Identification Number (UIN)

The government on April 1, 2021 initiated a process to create a National Register of all charitable and religious institutions. When the process is complete, the Income Tax Department will issue a Unique Identification Number (UIN) to all charitable and religious institutions. This will likely be a positive development and assist with proper collection of data and analysis of that data.

5. Amendments to the Finance (No. 2) Bill 2024

Finance Minister Nirmala Sitharaman introduced Finance (No. 2) Bill 2024 in the Lok Sabha on July 23, 2024. Overall, the proposed amendments will not affect NPOs/NGOs adversely. Even the proposed phasing out of the tax regime under section 10(23C) (iv), (v), (vi) or (via) is not likely to impact the sector significantly since most NPOs/NGOs are registered under Section 12(AB). Also, aside from minor benefits under section 10(23C), the requirements and benefits of tax exemption under both are almost the same. Finally, institutions already registered 10(23C) (iv), (v), (vi) or (via) will not lose their existing benefits (concerning modes of investment) upon making the transition.

6. Income Tax Act Review

An internal committee of the Income Tax Department will review the 1961 Income Tax Act to eliminate redundant clauses as well as to adopt best global practices. This will simplify the law for taxpayers and allow for better compliance. The panel, which comprises income tax officials from across the country, has started working to identify areas of improvement. The exercise is being conducted under a central government-mandated comprehensive review of the law.

We are currently unaware of any other pending initiatives. Please help keep us informed; if you are aware of pending initiatives, write to ICNL at ngomonitor@icnl.org.

An NGO can register under one of three primary legal forms: public charitable trust, society, or company.

Public Charitable Trusts

Public charitable trusts may be established for various purposes, including poverty relief, education, medical relief, providing facilities for recreation, and any other objective of general public utility. Trusts are generally irrevocable and are governed by state-specific laws. In Maharashtra State, for example, trusts are governed by the Maharashtra Public Trusts Act of 1950. In states that do not have a Trusts Act, the principles of the Indian Trusts Act of 1882 apply. Trusts are typically registered with the State Charity Commissioner. In states lacking a Charity Commissioner or a Trusts Act, the Deed of Trust may simply be registered with the office of the Registrar of Deeds/Assurances.

Societies

Societies are membership-based organizations registered for charitable purposes. They are usually managed by a governing council or a managing committee and are regulated by the Societies Registration Act of 1860, which has been adapted by individual states. This means compliance and registration procedures may differ by jurisdiction. For example, societies registered in Maharashtra or Gujarat do not need to renew their registration, while those in northeastern states must renew annually. Unlike trusts, societies may be dissolved. Virtually every state in India has a Registrar of Societies that oversees registration.

Companies

A CSO may also register as a not-for-profit company under Section 8 of the Indian Companies Act, 2013. These companies are centrally regulated and must obtain a license from the Central Government. Section 8 companies are formed for purposes such as the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, and other similar objectives. They must reinvest their profits into their stated purposes and are prohibited from distributing dividends to their members. Registration is completed with the Registrar of Companies.

Additional Regulatory Requirements

To benefit from income tax exemptions and offer tax deductions to donors, NGO must separately register under Section 12AB and Section 80G of the Income Tax Act, 1961, respectively.

Organizations that receive foreign contributions must comply with the Foreign Contribution (Regulation) Act (FCRA), 2010. They must either obtain prior approval or register with FCRA before receiving any funding from foreign sources.

Depending on their scale and activities, NGOs may also be subject to labor laws and goods and services tax (GST) regulations. For instance:

• NGOs employing more than 20 people must comply with the Employees’ Provident Fund requirements (compliance is voluntary for organizations with fewer than 20 employees).
• GST applies if commercial services provided exceed INR 2 million, or if goods sold exceed INR 4 million in a financial year.

To be eligible for tax exemption under the Income Tax Act of 1961, a not-for-profit entity must be established for religious or charitable purposes. The law defines charitable purposes to include “relief of the poor, education, medical relief, and the advancement of any other object of general public utility.” The Finance (No.2) Act of 2009 expanded this definition to also include “preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest.”

Organizations established for a charitable purpose falling under the category of “advancement of any other object of general public utility” have long faced constraints when engaging in income-generating activities. Previously, if income from such activities exceeded INR 2.5 million during the financial year, the entity risked losing its tax-exempt status. This provision was amended to allow such activities under two conditions:

• Such activity are undertaken in the course of carrying out the general public utility purposes; and
• Aggregate receipts from such activities during the previous year do not exceed 20 percent of the organization’s total receipts during the previous year.

On October 19, 2022, the Supreme Court of India ruled in Civil Appeal No. 21762 OF 2017 (Assistant Commissioner of Income Tax (Exemptions) vs. Ahmadabad Urban Development Authority) on tax exemption applicability for organizations engaged in revenue-generating activities under the category of “advancement of other object of general public utility.” The judgment stressed that where significant commercial activity is involved, such entities must show that the activity is incidental to the charitable purpose and not profit-oriented.

Under Section 135 of the Indian Companies Act of 2013, a company exceeding the specified financial thresholds must:

• establish a corporate social responsibility (CSR) committee on its board and disclose its composition in the board’s report;
• formulate a CSR policy and spend at least 2 percent of its aggregate net profit over the previous three years on CSR activities as outlined under Schedule VII of the Indian Companies Act, 2013; and
• disclose the CSR activities and amounts spent in its annual reports.

This requirement has led to confusion for some Section 8 companies that are themselves not-for-profit. Despite being registered under Section 12AA of the Income Tax Act of 1961 and required to spend 85 percent of their income annually on charitable work, they have received Show Cause Notices under Section 134(8) for not complying with the 2 percent CSR rule. This contradiction between CSR and income tax requirements remains unresolved.

In a Notification dated August 10, 2022, the Central Board of Direct Taxes (CBDT) introduced Rule 17AA to the Income Tax Rules, detailing the books and financial records required of all tax-exempt entities.

The Ministry of Corporate Affairs (MCA) issued a Notification [G.S.R. 715(E)] dated September 20, 2022, which amended certain provisions of the Companies (Corporate Social Responsibility (CSR) Policy) Rules to broaden eligibility for CSR implementing  agencies. Now,  trusts, societies, and Section 8 companies registered under Section 10(23C) (iv)-(via) of the Income Tax Act are also eligible CSR implementing agencies, alongside those registered under Section12AB.

Under Indian law, there is no legal requirement to invite public input on draft legislation. In practice, government ministries may choose to invite public comments on draft legislation and revise drafts based on the feedback received. However, this participatory approach is not uniformly practiced. For instance, the 2020 amendments to the Foreign Contributions Regulatory Act (FCRA) were enacted without any public consultation or debate. In general, advocacy and rights-based groups face greater scrutiny and restrictions from the state, which limits their ability to meaningfully engage in legislative or policy processes.

Indian law does not explicitly prohibit the formation or operation of unregistered groups. In fact, the Income Tax Act of 1961 recognizes both registered and unregistered associations of persons. There are no direct legal penalties for carrying out activities through an unregistered organization. However, unregistered entities are ineligible for tax exemptions and even unregistered organizations are required to obtain FCRA registration or prior permission to receive contributions from any foreign source.

NGOs may be established by individuals or corporate entities. Trusts and Section 8 companies can be established by a minimum of two individuals, while societies require at least seven founding members.

According to the Indian Trusts Act of 1882, any person legally competent to contract may create a trust. The Indian Contract Act of 1872 defines a competent person as someone of the age of majority, of sound mind, and not disqualified by law. There are no statutory restrictions preventing foreigners from serving as founders or trustees under the Bombay Public Trusts Act of 1950, the Indian Companies Act of 2013, the Societies Registration Act of 1860, or the Income Tax Act of 1961. The only legal bar on foreign involvement arises under FCRA, which is applicable only to organizations seeking foreign contributions.

A trust may be established with a nominal initial amount of money (INR 500/-), which becomes the trust’s property. Societies require no initial capital, and Section 8 companies may be formed with or without share capital.

Registration fees for trusts, societies, and Section 8 companies are nominal. As long as an organization’s stated objectives are charitable, registration is typically granted. However, the registration process is often slow, taking  several months to a year. According to the law, FCRA applications should be processed within a period of three months, but delays are common.

The government has the right to deny, suspend, or cancel registration (including for income tax exemption or FCRA registration) for reasons such as not functioning in line with the stated objectives, failure to file returns, or violation of any provision of the law. In such cases, due process must be followed, and NGOs have the right to appeal refusals or cancellations to a competent authority.

In April 2022, a Supreme Court ruling upheld most provisions of the Foreign Contribution (Regulation) Amendment Act (2020). (See the Barriers to Resources section below.) Following this, Indian authorities intensified enforcement actions against NGOs. Shortly after the ruling, the Central Bureau of Investigation (CBI) carried out raids and arrests across 40 locations as part of a crackdown on an alleged bribery scheme involving NGOs (including the Omidyar Network) and Ministry of Home Affairs (MHA) officials. In September 2022, the Income Tax Department conducted raids on the offices of the Centre for Policy Research (CPR), Oxfam India, and the Independent and Public-Spirited Media Foundation (IPSMF), which funds independent journalism. The raids were purportedly connected with simultaneous searches around the country related to investigations into the financing of “more than 20 registered but non-recognised political parties.” (For more, please see ICNL’s comparative report on SSEs, digital freedoms series, and legal framework for peaceful protest in this assembly research report).

Despite these crackdowns, Indian law does not impose burdens or constraints on NGO operations as long as their activities fall within a legally recognized “charitable purpose.” According to Section 2(15) of the Income Tax Act of 1961, charitable purposes include:

• Relief of the poor;
• Education;
• Medical relief;
• Preservation of the environment (including watersheds, forests, and wildlife);
• Preservation of monuments or places or objects of artistic or historic interest; and
• The advancement of any other object of general public utility.

Amendments made under the Finance Acts of 2008, 2010, 2011, and 2015 have affected organizations falling under the final category—“the advancement of any other object of general public utility.” Specifically, if such an organization engages in trade, commerce, or business activities, it may lose tax-exempt status unless:

(i) the activity is undertaken as part of pursuing the organization’s charitable purpose; and

(ii) The aggregate receipts from such activity do not exceed 20 percent of the organization’s total receipts in that fiscal year.

Advocacy for improved democracy or electoral reform might qualify under the “general public utility” clause—provided it does not involve significant commercial activity. However, Indian courts in India have held that entities with a primarily political objective do not qualify as charitable institutions. Lokamanya Tilak Jubilee National Trust Fund, [1942] 10 ITR 26 (Bom.); CIT v. All India Hindu Mahasabha [1983] 140 ITR 748 (Delhi)]. In the Lokamanya Tilak case, the court ruled that trusts established to promote political education or awareness were not charitable under law. The court argued that it is unable to evaluate whether a proposed change in law or public policy is beneficial, and thus cannot deem such purposes charitable.

Political purposes include, but also extend beyond, the support of political parties or of those seeking political office. A purpose pursued by an NGO is considered political if:

• It is concerned with party politics;
• It involves the dissemination of ‘propaganda’ for some cause; or
• It involves advocacy for legal or policy reform.

The third of these categories—advocacy for changes in law or policy—is especially problematic for activist welfare organizations. Courts generally consider such efforts “political,” not charitable, because they require a subjective judgment about the public benefit of proposed reforms, which courts are reluctant to make.

That said, NGOs in India remain independent in their internal governance. While the government has regulatory authority, it does not control internal operations. Fines and penalties may be imposed for compounding irregularities such as failing to file returns in time. NGOs may also be subject to random financial or tax assessments by the regulatory authorities.

The Finance Bill, 2017

The Finance Bill, 2017, enacted on March 31, 2017, introduced several changes affecting the voluntary sector in India:

• Restrictions on inter-charity corpus donations. While charitable organizations may continue to donate funds to other tax-exempt organizations, these cannot be in the form of corpus donations (capital contributions that are not to be spent but invested for future use). This restriction impacts the ability of recipient organizations to build financial reserves.
• Restrictions on cash donations. In an effort to curb untraceable donations and promote financial transparency, Section 80G(5D) of the Income Tax Act now limits tax deductions for donations exceeding INR 2,000 to contributions made via check, bank draft, or electronic transfer. Cash donations above this threshold are no longer eligible for tax benefits.
• Expansion of power of survey inspection. The amendment to Section 133A grants the Income Tax Department greater authority to conduct surveys of premises where charitable activities are carried out. Officials are now explicitly empowered to enter any place of charitable activity to inspect the account books, verify cash, stock, or valuable articles, or obtain any relevant information.

In 2018, the Maharashtra State Charity Commissioner issued an order directing approximately 400 NGOs and trusts registered in the state to remove the words “corruption” and “human rights” from their names or risk suspension under the Maharashtra Public Trusts Act of 1950. The charity commissioner’s office in Pune had previously taken similar action against 16 NGOs with the word “corruption” in their names, including Anna Hazare’s Bhrashtachar Virodhi Jan Andolan, which was suspended. The NGO’s case to regain its registration has since been pending in court. According to press reports, the State Charity Commissioner believes that only the government has the ability to prevent corruption and protect human rights.

Under the Finance Act, 2019, the Principal Commissioner or Commissioner of Income Tax may cancel the tax exemption registration of any trust or institution under Section 12AA if it is found to be in violation of any law. This has significant consequences: losing registration under Section 12AA means that a trust or institution becomes liable to pay income tax at the maximum marginal rate of 30 percent, in addition to a tax on accreted income (the value of assets exceeding liabilities).

As of April 1, 2021, all organizations receiving a tax exemption under Section 12AA of the Income Tax Act were required to reapply for the exemption under Section 12AB (Finance Act (2020) Section 12AB). Registration under Section 12AB is valid for five years. Similarly, organizations receiving a tax deduction under Section 80G of the Income Tax Act must also reapply for this benefit by June 30, 2021.

Pursuant to the Taxation Law Amendment Act, 2019, companies will be taxed at a reduced income tax rate, provided they forego all exemptions and deductions that are otherwise available under the Income Tax Act, including those under Section 80G for donations to charitable organizations. Although companies may choose whether or not to opt into the reduced tax regime, the choice is permanent and cannot be withdrawn in subsequent years. Many companies have chosen the lower tax rate, thereby reducing incentives to donate to NGOs and charitable institutions as such donations no longer offer them tax advantages.

The Finance Act, 2021 requires that donations received towards corpus or endowments must be invested in approved securities as per Section 11(5) of Income Tax Act. The law further requires that such investments be tagged to the corresponding corpus.

National Investigation Agency (NIA) Bill, 2019

The National Investigation Agency (NIA) Bill, 2019, passed by the Lok Sabha on July 15, 2019, expanded the NIA’s ability to investigate and prosecute offenses. The three key changes introduced by the Bill include:

• The Bill authorized the NIA to investigate additional offenses related to human trafficking, counterfeit currency, the manufacture and sale of prohibited arms, cyber-terrorism, and offenses under the Explosive Substances Act, 1908. This marked a significant expansion of the cases that could be investigated under the NIA Act, 2008.
• NIA officers were granted the authority to investigate scheduled offenses committed outside India. The government used the 2019 Easter Sunday terrorist attack in Sri Lanka to justify this provision.
• The bill allows session courts to be designated as special courts for trials of scheduled offenses. Under the original NIA Act, 2008, special courts could only be used for NIA trials.

Critics of the amendments argued that “providing sweeping powers to police officers is not advisable at a time when the central agencies were being ‘misused’ for political vendetta.” 0pposition leaders deemed it an attempt to make India a police state.

Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021

The Ministry of Corporate Affairs (MCA) notified the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 on January 22, 2021, introducing significant changes to the pactice of corporate social responsibility (CSR) in India. Key changes include:

1. “Administrative overheads” are now defined as expenses incurred for ‘general management and administration’ of CSR functions, and do not include expenses directly incurred in the design, implementation, monitoring, and evaluation of a particular CSR project or program.

2. CSR now includes research and development activities of new vaccines, drugs, and medical devices related to COVID-19 for financial years 2020-21, 2021-22, 2022-23 subject, if conducted in collaboration with approved institutions under Schedule VII and disclosed in the companie’s annual CSR report.

3. CSR may include activities undertaken outside of India if they involve the training of Indian sports personnel for national or international events;

4. The following is not considered as CSR expenditure:

• activities undertaken in the normal course of business;
• contribution of any amount directly or indirectly to any political party;
• activities benefitting the company’s employees;
• sponsorship activities from which the company derives marketing benefits; and
• activities carried out to fulfill statutory obligations.

5. ‘International Organization’ refers to any organization notified by the Central Government as an international organization under section 3 of the United Nations (Privileges and Immunities) Act, 1947, to which the provisions of the Schedule to the said Act apply;

6. ‘Ongoing Project’ is defined as a multi-year project undertaken by a company in fulfilment of its CSR obligation with timelines not exceeding three years excluding the financial year in which it was commenced, and includes projects not initially approved as multi-year projects but whose duration are extended beyond one year by the board based on reasonable justification.

7. CSR activities must be undertaken by the company itself or through:

• Section 8 companies, registered public trusts, or societies registered under section 12A and 80 G of the Income Tax Act, 1961, established by the company, either singly or along with any other company, or
• Section 8 companies, registered public trusts, or societies established by the Central Government or State Government; or
• any entity established under an Act of Parliament or a State legislature; or
• Section 8 companies, registered public trusts, or societies registered under section 12A and 80G of the Income Tax Act, 1961, with at least a three-year track record undertaking similar activities.

• Note: All implementing agencies must register electronically with the Central Government (MCA) via form CSR-1 electronically with the Registrar, thereby generating a unique CSR Registration Number.

8. To implement CSR, a company may also engage an international organization in the design, monitoring, and evaluation of CSR projects or programs in accordance with its CSR policy as well as for capacity building of their own personnel for CSR. A company may also collaborate with other companies on CSR projects, but must report separately on such collaborations.

9. The Board must ensure that CSR funds are utilized as approved. The Chief Financial Officer or person responsible for financial management must certify proper use.

10. For ongoing projects, the Board shall monitor the project’s implementation and annual allocations and make modifications, as needed.

11. The CSR Committee must draft an Annual Action Plan covering approved projects, implementation details, fund utilization, monitoring mechanisms, and impact assessments.

12. Rule 6 was deleted, which previously allowed companies to use up to 5 percent of their CSR expenditures to build the capacities of their personnel and implementing agencies. While this cap no longer applies, companies may still engage international organizations for CSR capacity building without a specified spending limit.

13. Administrative overhead shall not exceed 5 percent of the company’s total CSR expenditures for the financial year.

14. Surplus funds from CSR activities must be reinvested into the same project; transferred to the Unspent CSR Account and spent in pursuance of CSR policy and annual action plan of the company; or transferred to a Fund specified in Schedule VII within six months of the end of the financial year.

15. Excess CSR spend can be carried forward and offset against CSR obligations over the next three years, provided a Board resolution is passed.

16. CSR funds may be used to create or acquire capital assets held by

• a Section 8 company, registered public trust, or registered society); or
• beneficiaries of the CSR project, in the form of self-help groups, collectives, entities; or
• a public authority.
• Note: Assets created before the 2021 amendments must be aligned with these rules within 180 days (extendable by 90 days with Board approval).

17. Impact assessments are now mandatory for companies with average CSR obligations of at least 10 crore rupees in the last three years, for projects over 1 crore rupees completed at least one year prior. The cost of the impact assessment should not exceed 5 percent of the total CSR expenditure for that financial year or 50 lakh rupees, whichever is less.

18. The Board of Directors must disclose their CSR policy, committee composition, and project details on their website, if available.

19. Until a fund is designated in Schedule VII for the purposes of subsection (5) and (6) of section 135 of the Act, any unspent CSR amount must be transferred to any fund listed in schedule VII of the Act. In cases where a company spends more than the mandatory 2 percent on CSR in a particular financial year, the excess amount may be carried forward and applied towards CSR obligations over the next three years.

20. Unspent funds related to ongoing projects must be transferred to a special bank account within 30 days after the end of the financial year and spent within 3 years. Failing that, the funds must be transferred to a Schedule VII Fund.

21. Companies failing to spend the mandatory 2 percent CSR amount may be fined twice the shortfall or ₹10 million, whichever is less.

22. From FY 2021–22, entities approved under Sections 80G or 35(1) must file Form 10BD (due May 31 annually) and issue donation certificates in Form 10BE.

Failure to comply will result in a fee of Rs.200/- per day (per section 234G) and a penalty of Rs.10,000-1,00,000 (under Section 271K).

Barriers to International Contact

Previously, international NGOs (INGOS) and international donor agencies with offices in India registered with the Reserve Bank of India (RBI) and were regulated by the Foreign Exchange Management Act (FEMA) of 1999, not FCRA.

However, an amendment to RBI Notification No. FEMA 22(R) /RB-2016, issued on August 31, 2018, changed this framework. The amendment requires that any foreign NGO or entity engaged, wholly or partly, in activities covered under FCRA must register under FCRA and may not seek RBI approval under FEMA. INGOs registering under FEMA must now submit a declaration in the revised Form FNC affirming that they will not undertake any FCRA-related activities. Failure to comply will render RBI approval “void ab initio” (i.e., invalid from the outset) and subject to immediate withdrawal.

The August 31, 2018, amendment creates some uncertainty around two issues:

• Whether all INGOs with cultural, religious, economic, educational, or social (CREES) objectives in their governing documents—regardless of whether they operate such programs in India—are now required to register under FCRA.
• Whether existing liaison offices are affected retroactively by the amendment or whether it applies only to new applicants after August 31, 2018.

The amendment appears to reflect the MHA’s long-standing concern that INGOs were using FEMA registration to bypass FCRA scrutiny. In August 2016, for example, the MHA requested the Ministry of Finance to stop registering NGOs under FEMA, citing 67 NGOs that were found violating FCRA but tried to escape penalty by invoking their FEMA registration. With the 2018 amendment, FCRA has effectively become the primary legal framework for all foreign NGOs receiving or disbursing foreign funds in India.

Additionally, the MHA issued a notification on September 16, 2019 [G.S.R. 659(E)] requiring all office bearers, key functionaries, and governing body members of FCRA-registered organizations to submit an affidavit in a prescribed format. Though criticized as burdensome and intrusive, the requirement was ultimately accepted by most foreign-funded NGOs seeking to maintain compliance with FCRA.

Foreign Contributions Regulation Act, 2010 (FCRA)

Under the Foreign Contribution Regulation Act 2010 (FCRA), all NGOs in India—including public charitable trusts, societies, and Section 8 companies—must comply with the following conditions to accept foreign contributions:

• register with the central government;
• accept contributions only through designated banks; and
• maintain separate books of accounts for all foreign contribution receipts and disbursements.

For any foreign contribution, an NGOs must report the amount, source, manner in which it was received, purpose for which it was intended, and how it was used. Foreign contributions include currency, securities, and in-kind articles. Funds collected by an Indian citizen in a foreign country on behalf of an Indian NGO are also considered foreign contributions, as are funds received in India in Indian currency from a foreign source.

Commercial receipts, such as payments for consultancy services, are not considered foreign contributions under FCRA. NGOs can thus receive such commercial payments without FCRA registration and do not have to report them to the FCRA department. FCRA-registered NGOs should receive commercial receipts in their domestic bank accounts. Contributions from expatriate Indians are not considered foreign contributions as long as the individual has not become a citizen of a foreign country.

Under the FCRA (Amendment) Act, 2020, NGOs are prohibited from sub-granting foreign contributions to other organizations, even if the recipient is FCRA-registered. Previously, such transfers were allowed with Ministry approval. This amendment has significantly restricted collaborative funding models among CSOs.

If a foreign donor specifies in writing that all or part of a grant may be directed to the recipient organization’s capital fund or endowment, the recipient organization may allocate it accordingly and invest the amount in approved securities. Any interest or dividends earned from the investment of foreign contributions, even if received in Indian currency, must be disclosed on an organization’s FCRA report.

The MHA aggressively enforces FCRA compliance. For example:

• In March 2015, the government blacklisted 69 NGOs for failing to adhere to different aspects of the FCRA and cancelled the FCRA registration of 1,142 NGOs that received funding from foreign sources in Andhra Pradesh for failure to file annual returns for 2009 to 2012.
• On June 16, 2016, the MHA cancelled “with immediate effect” the FCRA registration of Sabrang Trust, led by civil rights activist Teesta Setelvad, citing misuse of funds received from the Ford Foundation. The Ford Foundation was subsequently put on a government watch list following a Gujarat government complaint that it was interfering in India’s internal affairs and promoting communal disharmony through engagement with Setelvad’s NGO.
• In November 2016, the MHA permanently cancelled the FCRA registration of the NGO Lawyers Collective for alleged misuse of foreign funds. However, in a January 2017 interim order, the Bombay High Court ruled that while the FCRA allows regulation of foreign funds, it should not be used “to stifle the very functioning of individuals or associations.” The Court thus ordered the government to un-freeze the group’s domestic and non-FCRA bank accounts.

Other court rulings have supported stricter enforcement of the FCRA. For example, on January 11, 2017, the Supreme Court of India ordered an audit of 3 million NGOs receiving funds from the government or foreign sources under the FCRA. It also ordered penal action against NGOs failing to file annual returns in a timely manner, citing a finding by the Central Bureau of Investigation (CBI) that only 10 percent of NGOs submitted such records.

Foreign Contribution Regulation Rules

In December 2015, the MHA issued amended Foreign Contribution Regulation Rules that significantly increased compliance and reporting requirements under FCRA.

Key provisions of the amended rules include:

Application process

• Applications for registration, prior permission, or renewal must be submitted online using the revised Form FC 3.
• Applications must be digitally signed.
• Applications sent by post will not be accepted.
• Payment of processing fees has been made electronic.

Reporting requirements

• All recipients of foreign contributions, regardless of the amount, must post their annual audited statement of accounts (including income and expenditure statements, receipts and payments accounts, and balance sheets) on their website or the government’s FCRA portal within nine months of the end of the financial year. Previously, only organizations that received foreign contributions in excess of INR 10 million were required to report summary information about the receipt and utilization of foreign contributions for the year of receipt and one year thereafter.
• NGOs must submit Form FC-4 annually, with an affirmation that the foreign funds have not been used for “activities that are likely to prejudicially affect the sovereignty and integrity of the country, the security, strategic, scientific and economic interests of the State and the public interest.” This clause may have a chilling effect on groups working on human rights, governance, or legal reforms.
• NGOs that are FCRA-registered but do not receive foreign contributions must still file Form FC-4 annually to maintain their registration, although they are exempt from submitting chartered accountant certificates or detailed financial statements.
• Until July 2022, quarterly disclosures of foreign contributions (including donor details, amounts, and receipt dates) were mandatory within 15 days of each quarter’s end. This requirement has since been rescinded.

Bank Reporting

• All banks are now required to notify the government within 48 hours of any foreign contribution received by any person or entity, including those with FCRA registration or prior permission.

Change Notifications:

• NGOs must report any changes to their name, address, objectives, registration with local or relevant authorities, banking information, or “key members” to the government within 45 days. While the term “key members” has not been defined, it is interpreted to include all governing Board Members.

The MHA also issued Notification S.O. 2291(E) dated June 5, 2018, which lists offenses under FCRA that are now compoundable. For most offenses, the minimum penalty is INR 100,000. The fine for accepting foreign hospitality in contravention of FCRA, however, is only INR 10,000. The competent authorities for compounding such offenses are the Director or Deputy Secretary in charge of the FCRA section at the MHA. However, to date, no audits appear to have been initiated by the Comptroller and Auditor General (CAG) of India under these rules.

The Foreign Contribution (Regulation) Amendment, 2020

The Foreign Contribution (Regulation) Amendment Act (FCRA) 2020 came into effect on September 29, 2020, introducing significant changes that impact how CSOs in India manage and utilize foreign contributions. Key amendments include:

• Ban on Sub-Grants: Organizations registered under FCRA or holding prior permission are no longer allowed to transfer foreign contributions to any other organization, even if the recipient also has FCRA approval. This severely restricts collaborative work and program implementation among CSOs and poses challenges for foreign grant-making organizations registered under FCRA that previously provided sub-grants to local partners.
• Reduced Administrative Expense Cap: The permissible limit for the portion of foreign contributions that can be spent on administrative expenses was reduced from 50 percent to 20 percent. This restriction places a burden on organizations by limiting their ability to cover essential costs such as salaries, professional fees, utility bills, travel, and other expenditures.
• Suspension Powers Expanded: The MHA is now empowered to suspend an organization’s FCRA registration for up to 360 days based on a summary inquiry and preliminary findings of non-compliance. This provision can be invoked before a full investigation is completed, creating uncertainty for organizations reliant on foreign funding.
• Surrendering FCRA Registration: Organizations may now request to surrender their FCRA certificate. However, any assets generated using foreign contributions must be transferred to a government-designated authority upon surrender. While this allows organizations to formally exit the FCRA regime, it poses a serious challenge to those with significant physical infrastructure, such as schools, hospitals, and vocational training centers, funded by foreign donations.
• Centralized Banking Requirement: Organizations granted registration or prior permission under FCRA must receive all foreign contributions in the State Bank of India’s New Delhi main branch.

Foreign Contribution Regulation (Amendment) Rules, 2020

On November 10, 2020, MHA issued the Foreign Contribution Regulation (Amendment) (FCRA) Rules, 2020. These Rules implemented several procedural changes following the enactment of the FCRA Amendment Act, 2020, and offered limit relief—chiefly, an extension of the deadline to open the designated FCRA Bank Account with the State Bank of India’s New Delhi Main Branch to June 30, 2021 from the original deadline of March 31, 2021. All other amendments, including the prohibition of sub-granting and the 20 percent administrative expense cap, remain effective.

Key amendments and clarifications include:

• Organization of a ‘Political Nature’: Rule 3, which provides guidelines for declaring any organization that is not a political party to be of a “political nature,” was amended. Now, organizations receiving foreign contributions will be considered to be of a political nature “if they participate in active politics or party politics,” in line with a Supreme Court ruling.
• Eligibility Criteria for Registration: In order to register with FCRA, organizations must now demonstrate a track record of at least three years and have spent a minimum of INR 1.5 million on core activities that benefit society over the last three financial years (up from INR 1 million).
• Eligibility Criteria for Prior Permission: In cases where organizations seek prior permission to receive more than INR 10 million in foreign contributions, the MHA may require that such funds are received in installments. In such cases, release of further installments is contingent on the recipient utilizing at least 75 percent of the previous installment and a field inquiry.
• Renewal Requirement: Applications to renew FCRA registration must be filed using Form FC-3C at least six months before the current registration expires. The application must be accompanied by an affidavit executed by each office bearer, key functionary, and key member. If renewal is not completed in time, the organization may not receive or use foreign contributions, including any remaining funds in its FCRA bank account, until renewed. In addition, any assets created with foreign contributions shall vest with the prescribed government authority until registration is renewed or a new registration is granted. As of March 2024, hundreds of organizations that had applied to renew their FCRA licenses at least six months before they were due to expire on September 30, 2021, were still awaiting renewal. The MHA extended the validity of registrations under process until June 30, 2024. While this provides some relief to the organizations, some foreign funders are not comfortable granting funding until the licenses are renewed. Moreover, several organizations have been denied renewal of their license.
• Designated FCRA Bank Account: Applicants applying for registration, renewal, or prior permission must provide details of the FCRA Bank Account with the State Bank of India’s New Delhi Main Branch.
• Registration and Renewal Fees: The fees for prior permission and renewal of registration are INR 5,000 and for new registration are INR 10,000.
• Online Forms:
• • A new online Form FC-7 was introduced for voluntary surrender of FCRA registration.
  • If an organization applying for registration, prior permission, or renewal is religious in nature, it must specify the denomination (Hindu, Muslim, Christian, etc.) in the online form.
• Office bearers and other key functionaries must disclose details of PAN and Aadhaar, along with their nationality and relationship with other member(s) of the executive council/governing body/office bearers.
• Officer bearers and other key functionaries must disclose any legal prosecutions against them, whether in the discharge of their official functions or private affairs.
• Declarations in the Annual Return: The chief functionary must now make extensive declarations in the organization’s Annual Return (FC-4), including whether:
• • Any foreign contribution was transferred to either FCRA or non-FCRA entities;
  • Any functionary of the association has been prosecuted or convicted;
  • Any asset created out of a foreign contribution is registered in names other than the name of the association;
  • Any domestic contributions have been credited in any FCRA Account;
  • Any foreign contributions have been received in an account other than the designated FCRA receipt account;
  • Any foreign contributions have been used for a purpose other than the defined purposes in the FCRA certificate of registration or prior permission;
  • Any foreign contributions were invested in speculative activities.
  • Any of the organization’s functionaries have violated any of the conditions as enumerated under sub-section (4) of section 12 of the Act;
  • The 20 percent administrative expense cap was breached;
  • Any fixed asset acquired out of foreign contribution was sold and not deposited in the organization’s FCRA account;
  • Any organization/entity not belonging to the association is being managed/ financially supported by the association;
  • Any foreign contributions were used outside India.
• Change in Governing Board: Organizations must report any change in the membership of their governing body, including the addition, resignation, death, or election of even one member, in Form FC-6E within 15 days. The change becomes effective only after MHA approval. Previously,  intimation to MHA was only required if more than 50 percent of key members changed.

Public Notice, September 30, 2021

The requirement to renew registration certificates issued by the MHA under the FCRA, 2010, was introduced in 2015 through an amendment to the Foreign Contributions Regulation Rules, 2011. According to this amendment, all FCRA certificates are valid for a five-year period, unless  suspended or canceled for violations of the Act or Rules.

Organizations that were registered under FCRA before the 2015 amendment were required to apply for renewal, and most were granted renewal effective November 1, 2016, with an expiration date of October 31, 2021.

To address the upcoming expiration of thousands of registrations, the MHA issued a Public Notice (No. II/21022/23(22)/2020-FCRA-III) on September 30, 2021, extending the validity of FCRA certificates. Under this notice, all FCRA registrations set to expire between September 29, 2020, and December 31, 2021, would remain valid until December 31, 2021—but only for those organizations that had submitted renewal applications on time.

Organizations that failed to apply for renewal before the expiration date had their FCRA registration certificates deemed invalid as of November 1, 2021, and were no longer permitted to receive foreign contributions. However, under Rule 12(8), such organizations may still apply for renewal up to one year after the expiry if they can provide a reasonable justification for the delay.

Domestic Funding

CSOs in India may raise funds through any lawful means, including donations, grants, sponsorships, and fundraising events. Under amendments to Section 11(4A) of the Income Tax Act of 1961, income from business activities that are incidental to an organization’s charitable purpose is exempt from taxation, provided that separate books and accounts are maintained. Furthermore, certain activities—such as renting out auditoriums—are not treated as business income.

The Finance Act, 2008 redefined “charitable purpose” to exclude trade, commerce, or business-related activities from tax exemption under the category “advancement of any other object of general public utility.” The Finance Act, 2015 narrowed this restriction, allowing such receipts to qualify as charitable only if they do not exceed 20 percent of total receipts in a fiscal year.

The Finance Act, 2017, passed by Parliament on March 30, 2017, introduced several important changes:

• Prohibited corpus donations (grants intended as capital contributions) from one charity to another;
• Made tax exemption under Sections 11 and 12 conditional on the timely filing of tax returns; and
• Mandated that in order to receive available tax deductions, donations exceeding INR 2,000 must be made by check or electronic transfer—part of the government’s broader efforts to promote a cashless economy and increased transparency.

Local religion mandals (e.g., Ganapti mandals or Navratri mandals), associations, and societies that are unregistered but seek donations for charitable or religious functions must obtain prior permission. A permission certificate is valid for six months, and must be renewed to continue seeking donations. Alternately, groups can seek registration as a charitable trust or society under the Societies Registration Act of 1860.

Amendment of the Maharashtra Public Trust Act (MPTA), 1950

On April 18, 2017, the Maharashtra state cabinet approved amendments to the Maharashtra Public Trust Act (MPTA), 1950. These require unregistered organizations or individuals seeking donations to receive permission from the assistant or deputy charity commissioner and mandate that all such donations and other transactions by unregistered bodies and individuals be audited by the charity commissioner.

Raising funds without permission could result in imprisonment of up to three months and/or a fine up to 1.5 times the total amount of donations collected.

There are no specific restrictions limiting the ability of NGOs to criticize the government or advocate for politically sensitive causes, including issues of human rights and democracy. However, NGOs cannot engage in political or legislative activities such as endorsing candidates for public office. NGOs have often been successful in advocacy work, especially on issues such as the rights of children and marginalized communities, indirectly influencing the drafting of more enabling laws and policies.

On March 24, 2015, India’s Supreme Court declared Section 66A of the Information Technology Act (“IT Act”)—which had often been misused by politicians, political parties, and their followers to silence critics—as unconstitutional. As a result of the decision, Internet content can no longer be removed without a court order, and there is no longer a threat of arrest for posting content on the Internet. The court, however, upheld the validity of section 69B and the 2011 guidelines for the implementation of the IT Act, which allow the government to block websites if their content has the potential to create communal disturbance, social disorder, or affect India’s relationship with other countries.

On October 25, 2018, the Enforcement Directorate (ED) of the Department of Revenue took action against Amnesty international in Bengaluru 20 days after it searched Greenpeace’s office in the same city. Both organizations were charged with FCRA violations. The raid on Amnesty International came after the organization had issued a statement that raids on media houses were an attempt to hinder the free press.

The Right to Information (Amendment) Act, 2019 was passed on August 1, 2019, and amended India’s Right to Information Act, 2005 by allowing the central government to decide the tenure and conditions for information commissioners at both central and state levels. Experts argued that these measures would dilute the law, reduce transparency, and take away the autonomy of the Central Information Commission (CIC), the highest appellate body on information applications. Seven former Information Commissioners had come together and outlined their opposition to the amendments, which were introduced in a secretive manner and shared with lawmakers only two days before they were tabled, with the government completely skipping the mandatory public disclosure and consultation process.

In late 2021, national security adviser Ajit Doval labeled civil society as the “new frontier of war.” This was considered a warning to dissenters and reflected the Narendra Modi government’s tendency to consider all criticism as enemy action. Doval also added that, “It’s civil society that can be subverted, suborned, divided and manipulated to hurt the interest of a nation. You are there to see this land is fully protected.”

New criminal laws came into effect on July 1, 2024, replacing the Indian Penal Code of 1860, the 1973 Code of Criminal Procedure, and the Indian Evidence Act of 1872. The new laws contain concerning provisions. For example, they replace sedition clauses with a new clause punishing “acts endangering sovereignty, unity and integrity of India” and increasing the minimum punishment for violations to seven years. Other provisions raise due process, privacy, and free expression concerns. Amnesty International and other NGOs have called for the laws’ repeal. Police in Uttar Pradesh used the new penal code to charge journalists who reported on the alleged mob lynching of a Muslim resident shortly after the criminal laws took effect.

Article 19(1)(b) of the Constitution of India guarantees the right to assemble peaceably and without arms. Despite this, there have been several instances in which this right has been restricted:

Ban on Protests at Jantar Mantar

In 2017, the National Green Tribunal (NGT)—established to address environmental protection and conservation issues—issued a significant ruling banning protests at Jantar Mantar in New Delhi. The decision was based on complaints from nearby residents who argued that prolonged demonstrations infringed upon their rights to peace, health, and dignity by causing noise pollution and environmental degradation. The NGT found that protests violated provisions of environmental laws, including the Air (Prevention and Control of Pollution) Act, 1981, and directed authorities to relocate protesters to Ramlila Maidan.

The decision was widely criticized by activists as a suppression of the constitutional right to assembly and free expression. Civil society leaders, including Anjali Bharadwaj of the National Campaign for People’s Right to Information, emphasized that the space—located near Parliament—symbolized citizens’ access to democratic protest and discourse. Since the ruling, protesters at Jantar Mantar have continued to face restrictions, with several incidents of violence reported, such as an attack on student demonstrators in January 2020. Once considered Delhi’s equivalent of Hyde Park’s Speaker’s Corner, Jantar Mantar’s role as a symbolic space for protest remains curtailed pending Supreme Court review.

Sedition Charges Against Amnesty International

On August 13, 2017, Amnesty International India hosted a panel discussion in Bangalore focused on human rights violations in Jammu and Kashmir. The event sparked controversy after heated exchanges broke out between pro-independence Kashmiris—primarily young people and students—and a Kashmiri Pandit leader who praised the Indian Army. Police were present and no violence occurred.

Based on a complaint by the student organization Akhil Bharatiya Vidyarthi Parishad (ABVP), local police filed sedition charges against Amnesty International India under Section 124A of the Indian Penal Code. The section criminalizes acts that incite hatred or disaffection against the Government of India. Amnesty denied any wrongdoing, stating that the event was held to defend constitutional values and draw attention to victims of human rights abuses. The organization emphasized that peaceful advocacy for political solutions is protected under both Indian constitutional law and international human rights standards.

Farmers’ Protests

In 2024, large-scale farmers’ protests resumed after the government failed to meet commitments made during the 2021 protests. These included legal guarantees for a minimum support price (MSP), loan waivers, and the withdrawal of legal cases filed against protesters. In response, authorities blocked highways leading to New Delhi with cement barricades, metal containers, barbed wire, and iron spikes to prevent the farmers’ entry.

When the farmers attempted to break through the barricades, police fired at least 4,500 tear gas grenades at them. Some of the tear gas grenades were shot via drones, the first time drones were used to disperse a protest in India. Protesters also sustained injuries after police fired kinetic impact projectiles (rubber bullets) at them.

Enforcement Directorate raids Bengaluru companies that received funds from George Soros’ NGO (March 2025)
The Enforcement Directorate (ED) raided eight locations linked to three Bengaluru-based companies that received funds from the US nonprofit Open Society Foundations (OSF) in alleged contravention of FEMA rules. The OSF is backed by US billionaire George Soros. The raids came after OSF transferred Rs 25 crore to the companies in “suspicious” transactions in the past few months. The ED will now review the transaction details, and if “any hint” of money laundering is found, an ECIR will be filed under the Prevention of Money Laundering Act (PMLA).

New Income-Tax Bill: Simplified, Shorter, and New Concept of ‘Tax Year’ (February 2025)
Simplified, crisp language, and removal of extra provisos and explanations along with an expanded definition of income are some of the key features of the new Income Tax Bill, 2025. The 622-page Bill has also defined a new concept of ‘tax year’ as the 12-month period beginning from April 1 and removes the term ‘assessment year’. However, no major structural change has been incorporated in the new Bill, with experts saying it is broadly a simplification exercise that will ensure continuity, with consolidated sections to reduce cross references, but lacks any major tweaks in penalty or compliance provisions. The new income-tax legislation is likely to come into effect from April 1, 2026.

Data Protection Rules: India Inc Says Challenges Remain (January 2025)
The Ministry of Electronics and Information Technology has released the much-awaited draft rules for the Digital Personal Data Protection Act, 2025. While the industry has broadly welcomed the draft, experts suggest that there is still substantial work to be done to address implementation hurdles, procedural gaps, and areas of ambiguity in the Act. “These rules were highly anticipated as there was an expectation that they would clarify the Act’s implementation challenges,” said Sherya Suri, Partner at Indus Law.

India Bars 20,600 NGO’s From Accepting Foreign Donations (September 2024)
Over the past decade, under new laws passed by Prime Minister Narendra Modi’s government, more than 20,600 NGOs in India have been barred from receiving foreign donations, according to an Amnesty International report published this month. Many of these groups, the report notes, “have long promoted human rights in the country.” There is also a delay in prosecutions under the laws “resulting in a high number of pending cases and accused persons in judicial custody waiting for cases to be tried and concluded”. Such delays, Amnesty adds, illustrate the possibility that these laws are being misused to clamp down on human rights defenders by ensuring that the criminal proceedings characterized by stringent bail provisions, prolonged detention, and lengthy investigation act as punishment.

India Using Anti-money Laundering Laws To Harass NGOs: Amnesty (September 2024)
India must stop its “witch hunt” against civil society groups under the pretext of tackling money laundering or terrorism financing, Amnesty International has said following a report by a global money laundering watchdog. Rights organizations and news outlets have long complained of harassment under Prime Minister Narendra Modi’s Hindu-nationalist administration, a charge it has denied. In the last decade, India has cancelled the licenses of thousands of NGOs using the Foreign Contribution Regulation Act (FCRA).

FATF Report Critiques India’s Approach to Regulation of NGOs (September 2024)
The Financial Action Task Force (FATF) noted that the Foreign Contribution (Regulation) Act is not being used as a targeted tool against terror financing of India-based NGOs, but instead monitors all foreign funding regardless of the organization’s or source’s risk level. The FATF called for India to ensure that measures against NPOs to prevent terror financing are based on a “risk-based approach” in the second mutual evaluation report released by the FATF on India.

Committee formed for Income Tax Act review (August 2024)
An internal committee of the Income Tax Department will review the 1961 Direct Tax Law to eliminate redundant clauses as well as adopt best global practices to simplify it for taxpayers for better compliance. The panel, comprising income tax officials from across the country, has started working to identify areas of improvement in the Income Tax Act, 1961.

Under proposed ‘urban Naxal’ law, I could be arrested for fulfilling my duty (July 2024)
It is in the nature of government, particularly these days, that persons in high places will suddenly come up with a bright idea and without much ado, draconian laws are made and pushed through Parliament. They are pushed through without discussion and without sending these obnoxious bills to Select Committees. Such is the nature of the special public security acts passed in Chhattisgarh, Telangana, Andhra Pradesh and Odisha. One such legislation has now been tabled in Maharashtra — the Special Public Security Act, 2024. Reading the Bill through the eyes of a human rights lawyer, I could see straightaway how my participation in meetings to explain to social workers the provisions of criminal law and the Constitution could have terrible repercussions.

Indian police launch criminal investigation into 2 journalists under new penal code (July 2024)
After a debate that the opposition boycotted in both Houses of Parliament (for good reasons), three Bills to replace (and re-enact) the Indian Penal Code, 1860, the Criminal Procedure Code, 1973 and the Indian Evidence Act, 1872 were passed. The new Bills carried names in Hindi (or Sanskrit) even in the English versions of the Bills. The President gave her assent to the Bills and the government notified that the new laws will come into force on July 1, 2024. There is stiff opposition to the new laws from many quarters. The government has dismissed the grounds of opposition as irrelevant and motivated.

Indian police launch criminal investigation into 2 journalists under new penal code (July 2024)
The Committee to Protect Journalists called on police in Uttar Pradesh state to drop their investigation into a claim that independent journalists Zakir Ali Tyagi and Wasim Akram Tyagi incited religious enmity through “malicious” posts on social media platform X alleging that a Muslim resident of Shamli district was killed in a July 4 “mob lynching.”

Empty beds, lost jobs: The price of India’s crackdown on NGO funds (July 2024)
Lakshman Yeme saw firsthand what happens when foreign funds are cut off under laws the Indian government says are meant to crack down on corruption but that critics say hurt the poorest most. Yeme works as a doctor at a hospital in Anjanwel in the coastal region of Maharashtra, and for years, he toiled almost alone in a poorly equipped, nearly empty building. Three years ago, the Bombay Sarvodaya Friendship Centre (BSFC), a Mumbai-based NGO, came to his rescue, building an operating theatre, paying for extra staff and subsidising surgeries. But BSFC’s licence to receive funds from foreign donors expired in October 2021 and since then it has not been able to renew it…. Thousands of civil society groups in India have had their licences to receive overseas donations cancelled since Prime Minister Narendra Modi’s government tightened surveillance on non-profit groups regulated under the Foreign Contribution Regulation Act (FCRA). According to the government’s FCRA dashboard, only 15,947 NGOs with an FCRA licence are still active — the permissions for 35,488 NGOs have either been cancelled or have expired and not been renewed.This has left many organisations struggling to survive and left some of the most vulnerable in this nation of 1.4 billion lacking vital services.

MHA Cancels FCRA Registration Of NGO Which Flagged Environmental Hazards Of Adani Project (July 2024)
The Ministry of Home Affairs (MHA) has reportedly cancelled the FCRA registration of the parent entity of the non-profit Centre for Financial Accountability (CFA), which monitors and critiques the role of domestic and international financial institutions and their impact on development, human rights and the environment, among other areas. The cancellation of FCRA registration of CFA comes days after it highlighted in a report how additional projects sanctioned in a Special Economic Zone operated by the Adani Group in the Kutch region of Gujarat “will compound environmental hazards and increase the health risks for the people while further polluting the environment and accelerating degradation of the ecology.”

India Passes FATF Scrutiny, But Concerns Raised Over Stringent Oversight Mechanism for NGOs (June 2024)
While the Financial Action Task Force (FATF) has acknowledged that India has achieved a “high level” of compliance, it has also emphasized that New Delhi is falling short in conducting case-by-case risk assessments due to its stringent crackdown on NGOs. The FATF plenary discussed India’s second report, but it will be made public only later.

The enormous stakes of India’s election (May 2024)
The 2024 Indian election is the largest in world history. Administering such a giant election is an immensely difficult task, especially in a middle-income country where poverty remains all too common. There are dozens of different parties on the ballot, with all sorts of different fault lines — including caste, religion, language, gender, and wealth— playing a role in shaping Indian voters’ decisions. But distilled down to its essence, the election is about one really big thing: Prime Minister Narendra Modi’s democracy-threatening quest to revolutionize the Indian state.

Misuse of FATF standards to undermine civil society groups in India (March 2024)
On February 12, 2024, FIDH and OMCT within the framework of the Observatory for the Protection of Human Rights Defenders, along with six other groups, wrote to the Financial Action Task Force (FATF) urging the global body to ensure its assessment team meets an independent and diverse set of civil society actors as part of its mutual evaluation of India’s anti-money laundering and countering financing of terrorism (AML/CFT) regime in India.

MHA’s Decision to Cancel FCRA Registration ‘Incomprehensible’ (January 2024)
The Union Ministry of Home Affairs has cancelled the Foreign Contribution Regulation Act (FCRA) registration of the Centre for Policy Research (CPR). This registration had earlier been suspended in February 2023. The policy think tank had said at the time that it is in complete compliance with all laws and was working with the authorities to have the license issue resolved.

Acts of violence, divisive policies in India are causes for concern (January 2024)
The European Parliament adopted a resolution expressing concern about “acts of violence, increasing nationalistic rhetoric and divisive policies” in India. The resolution, adopted months ahead of the 2024 Lok Sabha polls, draws attention to acts of violence and discrimination against religious minorities and the “harmful effects” of the Foreign Contribution Regulation Act and the Unlawful Activities (Prevention) Act on civil society organizations.

Omidyar Network India Shutting Down Operations (December 2023)
Impact investment firm Omidyar Network India, which has a dual-chequebook investment model, is exiting India after a decade of operations. Backed by the Omidyar Group and supported by eBay founder Pierre Omidyar and Pam Omidyar, the India-specific entity will not make any new investments going ahead, though it will be closing follow-on rounds committed to date.

India Could Be Under FATF Scrutiny for Pressuring NGOs and Civil Society (October 2023)
The Financial Action Task Force (FATF), an anti-money laundering intergovernmental organization, is asking if India, under the Narendra Modi government, is seeking to apply laws regarding the financing of organizations “overzealously” and therefore, “misusing local laws to crack down on non-profit organizations like Amnesty International and policy think tanks.” A FATF team is to visit India in November and is slated to catch up with NGOs to make a close assessment of the situation.

A New Report Examines the Law on Civil Society in India (October 2023)
Over the last few years, a perception has developed in India that scrutiny of the civil society by authorities has increased. This perception is scaffolded by data of rise in invocation of laws such as the Foreign Contribution (Regulation) Act, 2010, the Prevention of Money Laundering Act, 2002 and pressure from the Enforcement Directorate and Central Bureau of Investigation. The perception is also fuelled by an increase in the number of licence cancellations among non-profit organisations (NPOs) in India.

Government Revokes Tax Exemption Status of 4 More NGOs (October 2023)
The Income Tax department has revoked the tax exemption status of four more NGOS, with the revocation for two of the NGOs having been linked to protests against the Adani Group. In July this year, the tax exemption status of public policy think tank Centre for Policy Research was also revoked.

India passes data protection law amid surveillance concerns (August 2023)
The Digital Personal Data Protection Bill, 2023, passed on 9 August, has led to fears of insufficient privacy protections and increased surveillance by the government. Although the law gives users the right to correct or erase their personal data, it also gives the government powers to exempt state agencies from the law and seek information from firms and issue directions to block content on the advice of a data protection board appointed by the federal government.

‘Save The Children’ loses its FCRA permit (August 2023)
The Ministry of Home Affairs (MHA) has withdrawn the permit under the Foreign Contribution Regulation Act (FCRA) for U.K.-based NGO Save The Children’s Indian offshoot, Bal Raksha Bharat…. In India since 2008, Bal Raksha Bharat is spread across 16 States. Last year, it had come under the government’s radar for a fundraising campaign on malnutrition, which was objected to by the Ministry of Women and Child Development on the ground that the issue was being “vigorously pursued” by the government through its schemes.

Indian govt proposes revamp of colonial-era laws (August 2023)
The Indian government has proposed legislation to overhaul colonial-era criminal and penal laws, many of which were introduced in the 19th century during British rule. On the last day of the monsoon session of the parliament, Union Home Minister Amit Shah introduced three bills to repeal and replace the Indian Penal Code, the Code of Criminal Procedure, and the Indian Evidence Act. The Bharatiya Nyaya Sanhita will replace The Indian Penal Code of 1860; the Bharatiya Nagarik Suraksha Sanhita will replace the Code of Criminal Procedure; and the Bharatiya Sakshya Bill will replace Indian Evidence Act.

India’s Data Protection Law Weakens Citizens’ Right to Information (RTIA) (August 2023)
The implementation of the Right to Information Act (RTIA) still faces incidents of non-disclosure, non-compliance, and minuscule imposition of penalties on erring officials…. More recently, the RTIA is now in direct conflict with the just-passed Digital Personal Data Protection Act (DPDP) 2023.

MHA suspends FCRA licence of CARE India over Violations (June 2023)
The Ministry of Home Affairs (MHA) suspended the foreign funding license of CARE India over alleged violations of the Foreign Contribution (Regulation) Act, 2010. CARE India is a part of CARE International Confederation and has been working for the past 70 years with the aim of ending poverty and social exclusion. Some prominent NGOs including Oxfam India and Centre for Policy Research (CPR) have been denied a license over similar allegations.

Sebi Grants Nod for Social Stock Exchange (SSE) (December 2022)
SSE is a novel concept in India and is meant to serve the private and non-profit sectors by channeling greater capital to them. Sebi has asked social enterprises raising funds using SSE to disclose Annual Impact Report (AIR) within 90 days from the end of financial year to capture the qualitative and quantitative aspects of the social impact generated by the entity and, where applicable, the impact that is generated by the project or solution for which funds have been raised on SSE.

IT Department Raids Offices of Centre for Policy Research, Oxfam & IPSMF (September 2022)
The Income Tax (IT) Department is conducting raids at the offices of leading think tank, Centre for Policy Research (CPR), Oxfam India, and the Independent and Public-Spirited Media Foundation (IPSMF). The raids are connected with simultaneous searches in Haryana, Maharashtra, Chhattisgarh, Uttar Pradesh, and Gujarat, among other places, “over funding of more than 20 registered but non-recognized political parties.” While CPR is a public policy think tank, Oxfam is a global organization dedicated to fighting “poverty and injustice.” The Independent and Public-Spirited Media Foundation (IPSMF) promotes excellence in and funds “independent, public-spirited and socially impactful journalism.”

FCRA Bribery Case: CBI Detains MHA Official After Raid (May 2022)

Home Ministry Plans Overhaul of FCRA Division (April 2022)

Rana Ayyub, Journalist and Modi Critic, Barred from Leaving India (April 2022)

Supreme Court Upholds Recent Amendments to Foreign Contribution Regulation Act: But is its Reasoning Persuasive? (April 2022)

Accepting Foreign Funds Not an Absolute Right (April 2022)

Comforting the Comfortable and Afflicting the Afflicted: The Supreme Court’s FCRA Judgment (April 2022)

Amnesty Official Barred from Leaving India (April 2022)

FCRA in 2022: How We Got Here, and What it Means (February 2022)

Hyderabad ‘on the Brink of Becoming a Total Surveillance City’ (November 2021)

Madhya Pradesh Plans Law to Recover Damages from Protesters (November 2021)

‘Getting funds not NGOs’ fundamental right’ (November 2021)

NSA Ajit Doval says civil society is ‘new frontier of war’ (November 2021)

Sebi Approves Framework for Gold, Social Stock Exchanges in Board Meeting (September 2021)

Modi Government’s Auditors Question NGOs about Muslim Employees and Beneficiaries (July 2021)

Bar Council Amends Rules to Restrict Lawyers’ Speech (June 2021)

Police visit Twitter after it labels Modi’s party’s tweet as “manipulated media” (May 2021)

WhatsApp sues Indian government over new privacy rules (May 2021)

How FCRA inhibits ‘giving’ to India? (May 2021)

FCRA rules affect COVID aid to hospitals and NGOs (May 2021)

Delhi High Court issues notice in NGO’s plea seeking 6-month extension for opening FCRA account with SBI (May 2021)

NGOs request home ministry to waive new FCRA provisions for at least six months due to COVID crisis (April 2021)

Niti group works on new policy to regulate civil society groups (March 2021)

India tightens regulatory grip on social media companies (February 2021)

Government withdraws order on online science meetings (February 2021)

Universities Need Government Approval for Online International Events on India’s ‘Internal Matters’ (January 2021)

Indian city plans facial recognition to spot ‘women in distress’ (January 2021)

COVID-19: Manipur Government Seeks Help From NGOs (April 2020)

Central Government Cannot Brand an Organization as ‘Political’ for Aiding a Public Cause (March 2020)

Finance Bill 2020 – Potential Death Knell for Charitable Giving (January 2020)

India Likely to Force Facebook, WhatsApp to Identify Originators of Messages (January 2020)

The Laws Being Used to Suspend Internet, and What SC Laid Down (January 2020)

Draconian New Rules To Fix Rule-breaking Tata Trusts Will Hit Small NGOs (January 2020)

Attacks on protesters at JNU Lead to Demonstrations in Support of Students (January 2020)

Personal Data Protection Bill Weak on Protections/privacy (December 2019)

Amnesty India Offices In Delhi, Bengaluru Raided By CBI (November 2019)

Lok Sabha Passes Bill Amending RTI Act amidst Strong Objection (July 2019)

What is the National Investigation Agency Bill? (July 2019)

14 Aligarh Muslim University students booked for sedition (February 2019)

Amnesty, Greenpeace accuse Indian government of impeding work (February 2019)

‘Activists in Shackles’: Indians Denounce Arrests as Crackdown on Dissent (September 2018)

NGOs, trusts asked to remove ‘human rights’ or ‘corruption’ from their registered names (July 2018)

Finance Act Amended to Clarify Standard Deduction for Pensioners (April 2018)

How to Choose the Right Income Tax Return Form? (April 2018)

Modi govt representative meets Anna Hazare and assures him of considering his demands (March 2018)

Maharashtra charity commissioner de-registers 1 lakh trusts (February 2018)

What is Aadhaar Enrolment ID or Number for Income Tax Return? (February 2018)

Protesters detained near Jantar Mantar (November 2017)

“Right to Privacy is a fundamental right, it is intrinsic to right to life” (September 2017)

Panel calls for ‘light regulation’ of NGOs (July 2017)

Maharashtra cabinet approves stringent rules to regulate transactions of unregistered NGOs (April 2017)

Renewal of FCRA Licence Denied to 1,300 NGOs in 2016 (March 2017)

Major Christian Charity Is Closing India Operations Amid a Crackdown (February 2017)

Narendra Modi’s Crackdown on Civil Society in India (January 2017)

Foreign Funding Law Used to Harass 25 Groups (November 2016)

Sedition case filed against Amnesty International India (August 2016)

FCRA violations: Government cancels Teesta Setalvad NGO’s registration (June 2016)

UN rights experts ask India to repeal FCRA (June 2016)

The KPMG Survey of Corporate Responsibility Reporting 2015 (November 2015)

Government Drops Two Contentious Clauses on NGOs (September 2015)

Supreme Court strikes down Section 66A of IT Act (March 2015)

Civil society wants government to end campaign of intimidation against NGOs (November 2014)

India’s pioneering CSR law could have promise, but progress is slow (October 2014)

Enforcement Actions Against Amnesty International and Greenpeace

Amnesty International’s work in India focused on upholding universal human rights and building a global movement of people who take injustice personally, the same values enshrined in the Indian Constitution that flow from a rich Indian tradition of pluralism, tolerance, and dissent. Nevertheless, Amnesty has faced increasing difficulty and resistance from the State to its operations in the country, including accusations of violating various domestic regulatory restrictions.

On October 25, 2018, the Enforcement Directorate (ED) of India’s Department of Revenue raided the offices of Amnesty international in Bengaluru, just 20 days after a similar action against Greenpeace India in the same city. The ED confiscated documents and laptops. Citing alleged violations of the Foreign Contribution Regulation Act (FCRA). The raid followed Amnesty International’s public criticism of recent government actions against media houses, which Amnesty characterized as attempts to stifle press freedom.

According to the ED, after the MHA denied FCRA registration to Amnesty International India Foundation Trust (AIIFT), it circumvented the law by establishing a commercial entity called Amnesty International India Pvt. Ltd (AIIPL). The ED alleged that AIIPL received Rs 36 crore in foreign funds through commercial channels, of which 10 crore was received as long-term loans. This amount was immediately placed in fixed deposits (FDs) and another Indian entity, Indians for Amnesty International Trust (IAIT), established an overdraft facility for Rs. 14.25 crore with the Rs.10 crore FD as collateral. The remaining Rs. 26 crore was received in two other bank accounts of AIIPL as “consultancy services.”

The ED argued that Amnesty misused a loophole in Explanation 3 to Section 2(1)(h) of the FCRA, which excludes legitimate fees for goods or services from the definition of foreign contribution. The ED contends that Amnesty masked foreign donations as commercial payments for services to evade FCRA restrictions.

A similar ED crackdown on Greenpeace occurred on October 5, 2018, when its offices in Bengaluru were raided and its bank accounts frozen for alleged FCRA violations and “raising funds through fraudulent means.” Greenpeace, whose FCRA registration had been cancelled in 2015 on grounds of “anti-national activities,” denied the allegations and maintains that most of its funding comes from domestic donors.

On November 15, 2019, the Central Bureau of Investigation (CBI) conducted further raids on Amnesty’s offices in Bangalore, citing ongoing FCRA violations.  The CBI alleged that Amnesty International UK had transferred INR 46 crore to AIIPL, which Amnesty classified as Foreign Direct Investment (FDI) under the Foreign Exchange Management Act (FEMA) rather than foreign contribution under FCRA. The MHA accused Amnesty of using commercial channels to conduct activities that should have been regulated under FCRA, claiming the funds were used for programs of a “cultural, economic, educational, religious, or social” nature—thus requiring FCRA registration or prior approval.

Amnesty International has consistently denied wrongdoing, stating:

“Over the past year, a pattern of harassment has emerged every time Amnesty International India stands up and speaks out against human rights violations in India. Amnesty International India stands in full compliance with Indian and international law.” 

Despite this, at the end of September 2020, Amnesty International closed its operations in India due to government pressure.