* 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. Foreign Contribution Regulation Amendment Rules 2015
7. Goods & Service Tax Act 2017
8. Finance Act 2020
9. Foreign Contribution Regulation Amendment Act 2020
10. Digital Personal Data Protection Act 2023
11. Income Tax Act 2025
12. Foreign Contribution (Regulation) Amendment Rules 2026

Proposed 2026 Amendment Bill to the Foreign Contribution (Regulation) Act (FCRA)

In March 2026, the Government of India introduced the Foreign Contribution (Regulation) Amendment Bill, 2026 in the Lok Sabha, proposing structural changes to the Foreign Contribution (Regulation) Act, 2010. A central feature of the bill is the creation of a new regulatory framework governing the treatment of foreign contributions and assets when an organization’s registration is suspended, cancelled, surrendered, or lapsed. In such cases, foreign-funded assets would be provisionally vested in a government-designated authority, which may assume control over their management, including overseeing ongoing activities, and, if registration is not restored within a prescribed period, permanently take ownership of those assets. The authority would also be empowered to transfer such assets to government entities or dispose of them, with proceeds directed to the public treasury.

The bill also introduces additional regulatory changes, including formalizing automatic cessation of registration where renewal is not obtained, expanding the definition of “key functionaries” subject to compliance requirements and potential liability, and establishing time-bound conditions for the receipt and use of foreign contributions under prior permission. Taken together, these measures indicate a shift toward a more centralized, asset-focused regulatory approach, extending beyond oversight of funding flows to risk organizational continuity and control of resources.

In early April 2026, parliamentary consideration of the bill was deferred to a subsequent legislative session following opposition from political parties and concerns raised by stakeholders, including religious groups. Reports suggest the postponement reflects the sensitivity of the proposed changes and their potentially significant impact on CSOs and their donors.

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.

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.

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.

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.

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.

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.

Indian law generally does not impose burdens or constraints on NGO operations where activities fall within a legally recognized “charitable purpose.” Section 2(15) of the Income Tax Act, 1961 defines charitable purposes to include:

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

Amendments under the Finance Acts of 2008, 2010, 2011, and 2015 affected organizations falling within the final category, “the advancement of any other object of general public utility.” An organization engaging in trade, commerce, or business may lose tax-exempt status unless:

1. The activity is undertaken as part of pursuing the organization’s charitable purpose; and

2. Aggregate receipts from the activity do not exceed 20 percent of the organization’s total receipts in that fiscal year.

Advocacy for improved democracy or electoral reform may qualify under the “general public utility” category if it does not involve significant commercial activity. Indian courts, however, have held that entities with primarily political objectives do not qualify as charitable institutions. In Lokamanya Tilak Jubilee National Trust Fund, [1942] 10 ITR 26 (Bom.), and CIT v. All India Hindu Mahasabha, [1983] 140 ITR 748 (Delhi), courts treated political education and awareness as non-charitable because evaluating the public benefit of proposed legal or policy change would require a subjective judgment.

Political purposes extend beyond support for political parties or candidates. An NGO purpose may be considered political where it:

• Concerns party politics;
• Involves dissemination of “propaganda” for a cause; or
• Involves advocacy for legal or policy reform.

The third category is especially problematic for activist welfare organizations. Courts commonly view advocacy for legal or policy change as political rather than charitable because it requires an assessment of the public benefit of proposed reforms.

NGOs remain independent in their internal governance. Although the government exercises regulatory authority, it does not directly control internal operations. Authorities may impose fines or penalties for irregularities such as late filings, and NGOs may be subject to random financial or tax assessments.

Chronological Legal and Regulatory Developments

2017 — Finance Act, 2017

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

• Restrictions on inter-charity corpus donations. Charitable organizations may continue to donate to other tax-exempt organizations, but not through corpus donations—capital contributions intended for investment rather than immediate expenditure. This limits recipients’ ability to build financial reserves.
• Restrictions on cash donations. Section 80G(5D) of the Income Tax Act limits tax deductions for donations exceeding INR 2,000 to contributions made by check, bank draft, or electronic transfer. Cash donations above that amount are not eligible for tax benefits.
• Expanded survey and inspection powers. Amendments to Section 133A authorize Income Tax Department officials to enter premises where charitable activities occur, inspect account books, verify cash, stock, or valuable articles, and obtain relevant information.

2018 — State-Level Naming Restrictions and FEMA Changes

In 2018, the Maharashtra State Charity Commissioner directed approximately 400 NGOs and trusts to remove the words “corruption” and “human rights” from their names or risk suspension under the Maharashtra Public Trusts Act, 1950. The Pune office had previously taken similar action against 16 NGOs, including Anna Hazare’s Bhrashtachar Virodhi Jan Andolan, whose case to regain registration remained pending. Press reports indicated that the Charity Commissioner believed only the government could prevent corruption and protect human rights.

On August 31, 2018, an amendment to Reserve Bank of India Notification No. FEMA 22(R)/RB-2016 changed the framework governing international NGOs and foreign entities. Organizations engaged, wholly or partly, in activities covered by the Foreign Contribution Regulation Act (FCRA) were required to register under FCRA and could no longer rely on approval under the Foreign Exchange Management Act (FEMA), 1999. INGOs registering under FEMA were required to submit a declaration in revised Form FNC affirming that they would not undertake FCRA-related activities. Noncompliance could render RBI approval void ab initio and subject to immediate withdrawal.

The amendment created uncertainty over whether all INGOs whose governing documents contain cultural, religious, economic, educational, or social objectives must register under FCRA, regardless of their actual activities in India, and whether the amendment applies retroactively to existing liaison offices. It reflected the Ministry of Home Affairs’ longstanding concern that INGOs were using FEMA registration to avoid FCRA scrutiny. In August 2016, the Ministry had asked the Ministry of Finance to stop registering NGOs under FEMA, citing 67 organizations accused of violating FCRA while invoking FEMA registration.

2019 — Tax, Investigative, and FCRA Developments

Under the Finance Act, 2019, the Principal Commissioner or Commissioner of Income Tax may cancel a trust or institution’s tax-exemption registration under Section 12AA if it violates any law. Loss of registration may subject the entity to income tax at the maximum marginal rate of 30 percent and to tax on accreted income, defined as the value of assets exceeding liabilities.

The Taxation Laws Amendment Act, 2019 introduced a reduced corporate income-tax rate for companies that forgo exemptions and deductions otherwise available under the Income Tax Act, including deductions under Section 80G for donations to charitable organizations. Although companies may choose whether to enter the reduced-rate regime, the decision is permanent. Many companies have opted for the lower rate, reducing the tax incentive to donate to NGOs and charitable institutions.

The National Investigation Agency (NIA) Bill, 2019, passed by the Lok Sabha on July 15, 2019, expanded the NIA’s investigative and prosecutorial authority. It:

• Authorized the NIA to investigate additional offenses involving human trafficking, counterfeit currency, prohibited arms, cyber-terrorism, and offenses under the Explosive Substances Act, 1908;
• Granted NIA officers authority to investigate scheduled offenses committed outside India; and
• Allowed sessions courts to be designated as special courts for trials of scheduled offenses.

Critics argued that granting broader powers to central investigative agencies risked political misuse and could contribute to the emergence of a police state.

On September 16, 2019, the Ministry of Home Affairs issued Notification G.S.R. 659(E), requiring office bearers, key functionaries, and governing-body members of FCRA-registered organizations to submit affidavits in a prescribed format. Although criticized as burdensome and intrusive, the requirement was ultimately accepted by most foreign-funded NGOs seeking to maintain compliance.

2020 — Tax Re-registration and FCRA Amendments

The Finance Act, 2020 introduced a new registration framework under Section 12AB of the Income Tax Act. Beginning April 1, 2021, organizations previously registered for tax exemption under Section 12AA were required to reapply under Section 12AB. Registration under Section 12AB is valid for five years. Organizations receiving tax-deductible status under Section 80G were also required to reapply by June 30, 2021.

The Foreign Contribution (Regulation) Amendment Act, 2020 imposed additional controls on organizations receiving foreign contributions. In April 2022, the Supreme Court upheld most of its provisions. See the Barriers to Resources section for further discussion.

2021 — Finance and Corporate Social Responsibility Rules

The Finance Act, 2021 requires corpus and endowment donations to be invested in securities approved under Section 11(5) of the Income Tax Act and requires such investments to be tagged to the corresponding corpus.

The Ministry of Corporate Affairs notified the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 on January 22, 2021. The Rules introduced extensive changes to corporate social responsibility (CSR), including the following:

1. “Administrative overheads” are defined as expenses for the general management and administration of CSR functions, excluding costs directly incurred in designing, implementing, monitoring, or evaluating a specific CSR project or program.

2. CSR may include research and development relating to COVID-19 vaccines, drugs, and medical devices during fiscal years 2020–21, 2021–22, and 2022–23, subject to collaboration and disclosure requirements.

3. CSR may include activities outside India when they involve training Indian sports personnel for national or international events.

4. Activities undertaken in the normal course of business, political contributions, activities benefiting employees, sponsorships yielding marketing benefits, and activities undertaken to fulfill statutory obligations are excluded from CSR expenditure.

5. The Rules define “international organization” and “ongoing project,” including multi-year projects generally not exceeding three years beyond the financial year in which they begin.

6. CSR activities may be implemented directly or through qualifying Section 8 companies, registered public trusts, societies, government-created entities, statutory entities, or qualifying organizations with at least a three-year track record.

7. All implementing agencies must register electronically with the Central Government through Form CSR-1, generating a unique CSR Registration Number.

8. Companies may engage international organizations to design, monitor, and evaluate CSR projects or build CSR capacity, and may collaborate with other companies while reporting separately on joint initiatives.

9. Boards must ensure that CSR funds are used as approved, with certification by the Chief Financial Officer or other responsible financial officer.

10. Boards must monitor ongoing projects and annual allocations, while CSR Committees must prepare annual action plans covering approved projects, implementation, fund utilization, monitoring, and impact assessment.

11. Administrative overhead may not exceed five percent of total CSR expenditure for the financial year.

12. CSR surpluses must be reinvested in the same project, transferred to an Unspent CSR Account and used under the CSR policy and annual action plan, or transferred to a fund listed in Schedule VII within six months of the financial year’s end.

13. Excess CSR spending may be carried forward and offset against obligations over the next three years if approved by board resolution.

14. CSR funds may be used to create or acquire capital assets held by qualifying nonprofit entities, project beneficiaries organized through collectives or similar entities, or public authorities.

15. Impact assessments are mandatory for companies with average CSR obligations of at least INR 10 crore over the preceding three years for qualifying projects valued above INR 1 crore and completed at least one year earlier.

16. Boards must disclose CSR policies, committee composition, and project details on company websites where available.

17. Unspent amounts for ongoing projects must be transferred to a special bank account within 30 days after the end of the financial year and spent within three years, after which remaining funds must be transferred to a Schedule VII fund.

18. Companies that fail to spend the mandatory two percent CSR amount may be fined twice the shortfall or INR 10 million, whichever is less.

19. Beginning in fiscal year 2021–22, entities approved under Sections 80G or 35(1) must file Form 10BD annually by May 31 and issue donation certificates in Form 10BE. Noncompliance may trigger daily fees and monetary penalties.

2022 — Supreme Court Ruling and Enforcement Actions

In April 2022, the Supreme Court upheld most provisions of the Foreign Contribution (Regulation) Amendment Act, 2020. Following the ruling, authorities intensified enforcement actions against NGOs. The Central Bureau of Investigation conducted raids and arrests at approximately 40 locations in connection with an alleged bribery scheme involving NGOs, including the Omidyar Network, and Ministry of Home Affairs officials.

In September 2022, the Income Tax Department raided the offices of the Centre for Policy Research, Oxfam India, and the Independent and Public-Spirited Media Foundation, which funds independent journalism. The raids were reportedly connected with simultaneous searches relating to investigations into the financing of more than 20 registered but unrecognized political parties.

For additional context, see ICNL’s comparative report on social and solidarity economy entities, the digital freedoms series, and ICNL’s research on legal frameworks for peaceful protest.

2026 — Foreign Contribution (Regulation) Amendment Rules

On June 22, 2026, the Government of India amended the Foreign Contribution (Regulation) Rules, 2011, introducing new compliance obligations and operational restrictions for organizations receiving foreign funding. The amendments did not adopt certain controversial measures proposed in the March 2026 FCRA Amendment Bill, including provisions that would have vested NGO assets in the government following loss of FCRA registration. Nevertheless, the Rules significantly expand administrative controls over foreign-funded CSOs and raise concerns regarding consistency with international standards and Financial Action Task Force recommendations.

The Rules require organizations to identify the purposes and States or Union Territories for which they seek FCRA registration. Applicants must select from a government-prescribed schedule of more than 100 approved religious, cultural, economic, educational, and social activities. Existing registrants must notify the government of the purposes and geographic areas for which they wish to retain registration, while future expansion into new purposes or locations requires approval. The schedule expressly excludes proselytization, or religious conversion, from permitted religious activities.

The Rules broaden the definition of “key functionary” to include trustees, directors, partners, office bearers, and others exercising control over an organization. Organizations with foreign nationals serving as key functionaries generally are not eligible for registration or prior permission unless specifically authorized by the government.

The Rules also expand reporting and transparency obligations. Organizations must provide more detailed activity reports, disclose social media accounts and publications, and, in some circumstances, identify the ultimate donors behind donor-advised funds and other intermediary funding mechanisms.

New operational thresholds include a requirement that an organization use at least INR 10 lakh, approximately US$12,000, in foreign contributions during the preceding two financial years to demonstrate “reasonable activity” for renewal and cancellation purposes. Organizations receiving foreign funds under installment-based prior-permission arrangements must spend at least 75 percent of one installment before a subsequent installment may be released.

Civil society and philanthropic organizations have warned that the amendments increase compliance burdens and may disproportionately restrict foreign funding for smaller organizations and those operating across multiple regions. Critics also argue that the framework is not sufficiently risk-based or proportionate.

Barriers to International Contact

International NGOs and foreign donor agencies with offices in India were historically registered with the Reserve Bank of India and regulated under the Foreign Exchange Management Act, 1999, rather than FCRA.

In August 2016, the Ministry of Home Affairs asked the Ministry of Finance to stop registering NGOs under FEMA, citing 67 organizations accused of violating FCRA while seeking to avoid penalties by relying on their FEMA registration.

On August 31, 2018, an amendment to RBI Notification No. FEMA 22(R)/RB-2016 required any foreign NGO or entity engaged, wholly or partly, in FCRA-covered activities to register under FCRA and prohibited it from relying on RBI approval under FEMA. INGOs applying under FEMA must submit a declaration in revised Form FNC affirming that they will not conduct FCRA-related activities. Failure to comply renders RBI approval void ab initio and subject to immediate withdrawal.

The amendment left uncertainty over whether all INGOs with cultural, religious, economic, educational, or social objectives in their governing documents must register under FCRA regardless of their activities in India, and whether the amendment applies retroactively to existing liaison offices. In practice, FCRA has become the principal framework governing foreign NGOs that receive or disburse foreign funds in India.

On September 16, 2019, the Ministry of Home Affairs issued Notification G.S.R. 659(E), requiring all office bearers, key functionaries, and governing-body members of FCRA-registered organizations to submit affidavits in a prescribed format. Although criticized as burdensome and intrusive, the requirement was accepted by most foreign-funded NGOs seeking to remain compliant.

Under the Foreign Contribution Regulation Act, 2010 (FCRA), NGOs in India—including public charitable trusts, societies, and Section 8 companies—must register with the central government, receive foreign contributions only through designated bank accounts, and maintain separate books for all foreign-contribution receipts and expenditures.

For each foreign contribution, an NGO must report the amount, source, manner of receipt, intended purpose, and use. Foreign contributions include currency, securities, and in-kind articles. Funds collected abroad by an Indian citizen on behalf of an Indian NGO, as well as Indian-currency funds received in India from a foreign source, are also treated as foreign contributions.

Commercial receipts, including consultancy payments, are not treated as foreign contributions. NGOs may therefore receive such payments without FCRA registration and should deposit them in domestic bank accounts. Contributions from expatriate Indians are not treated as foreign contributions so long as the contributor has not become a foreign citizen.

A foreign donor may direct all or part of a grant to an organization’s capital fund or endowment. The recipient may invest such funds in approved securities, but any interest or dividends earned from foreign contributions must be disclosed in its FCRA reporting.

Chronological Legal and Regulatory Developments

2015

In March 2015, the government blacklisted 69 NGOs for alleged FCRA violations and cancelled the registrations of 1,142 NGOs in Andhra Pradesh for failing to file annual returns for 2009–2012.

In December 2015, the Ministry of Home Affairs (MHA) amended the Foreign Contribution Regulation Rules, significantly expanding compliance and reporting obligations. The principal changes included:

• Online submission of registration, prior-permission, and renewal applications through revised Form FC-3, with digital signatures and electronic fee payment; postal applications were no longer accepted.
• Annual online publication of audited accounts by all foreign-contribution recipients within nine months of the end of the financial year, regardless of the amount received.
• Annual filing of Form FC-4, including an affirmation that foreign funds were not used for activities considered prejudicial to sovereignty, security, strategic, scientific, or economic interests, or the public interest.
• Annual Form FC-4 filing even by FCRA-registered organizations that received no foreign contribution, although such organizations were exempt from chartered-accountant certificates and detailed financial statements.
• Quarterly disclosure of donor names, amounts, and dates of receipt within 15 days after each quarter; this requirement remained in place until July 2022.
• A requirement that banks notify the government within 48 hours of any foreign contribution received by any person or entity.
• A requirement that NGOs notify the government within 45 days of changes to their name, address, objectives, local registration, banking details, or key members.

2016

On June 16, 2016, the MHA cancelled the FCRA registration of Sabrang Trust, led by civil-rights activist Teesta Setalvad, alleging misuse of Ford Foundation funding. The Ford Foundation was subsequently placed on a government watch list after the Gujarat government alleged interference in India’s internal affairs and the promotion of communal disharmony through its engagement with Setalvad’s organization.

In November 2016, the MHA permanently cancelled the FCRA registration of Lawyers Collective for alleged misuse of foreign funds.

2017

In a January 2017 interim order, the Bombay High Court held that although the FCRA permits regulation of foreign funding, it should not be used “to stifle the very functioning of individuals or associations.” The Court ordered the government to unfreeze Lawyers Collective’s domestic and non-FCRA bank accounts.

On January 11, 2017, the Supreme Court ordered an audit of approximately three million NGOs receiving government or foreign funds and directed penal action against organizations that failed to file annual returns. The order cited a Central Bureau of Investigation finding that only about 10 percent of NGOs submitted the required records.

2018

On June 5, 2018, the MHA issued Notification S.O. 2291(E), identifying compoundable FCRA offenses. For most offenses, the minimum penalty is INR 100,000; the penalty for accepting foreign hospitality in violation of the FCRA is INR 10,000. The Director or Deputy Secretary responsible for the FCRA section at the MHA is the competent authority for compounding. No audits appear to have been initiated by the Comptroller and Auditor General under these rules.

2020

The Foreign Contribution (Regulation) Amendment Act, 2020 entered into force on September 29, 2020. Its principal changes included:

• A prohibition on transferring or sub-granting foreign contributions to any other organization, including another FCRA-registered organization. Previously, transfers could occur with Ministry approval.
• A reduction in the permissible administrative-expense cap from 50 percent to 20 percent of foreign contributions.
• Expanded MHA authority to suspend an organization’s FCRA registration for up to 360 days on the basis of a summary inquiry and preliminary findings.
• A procedure for voluntary surrender of FCRA registration, under which assets created with foreign contributions must be transferred to a government-designated authority.
• A requirement that all foreign contributions be received through an account at the State Bank of India’s New Delhi Main Branch.

On November 10, 2020, the MHA issued the Foreign Contribution (Regulation) Amendment Rules, 2020, implementing the statutory amendments and adding procedural requirements. The rules extended the deadline for opening the designated State Bank of India account to June 30, 2021, but left the sub-granting ban and 20 percent administrative-expense cap in force.

The 2020 Rules also:

• Revised the standard for designating organizations as being of a “political nature” to focus on participation in active or party politics.
• Required applicants for registration to show at least three years of activity and expenditures of at least INR 1.5 million on core social-benefit activities during the preceding three financial years.
• Allowed the MHA to require foreign contributions exceeding INR 10 million under prior-permission arrangements to be disbursed in installments, with later installments contingent on use of at least 75 percent of the previous installment and a field inquiry.
• Required renewal applications through Form FC-3C at least six months before expiry, accompanied by affidavits from each office bearer, key functionary, and key member.
• Required applicants for registration, renewal, or prior permission to provide details of the designated FCRA account at the State Bank of India’s New Delhi Main Branch.
• Set fees of INR 5,000 for prior permission and renewal and INR 10,000 for new registration.
• Introduced Form FC-7 for voluntary surrender of registration and expanded online disclosures concerning religious denomination, PAN and Aadhaar details, nationality, relationships among governing members, and legal proceedings.
• Expanded declarations in the annual Form FC-4 concerning transfers, prosecutions, ownership of assets, use of bank accounts, use of funds outside approved purposes, speculative investment, administrative expenses, disposal of assets, support to other entities, and use of funds outside India.
• Required organizations to report any change in governing-body membership through Form FC-6E within 15 days, with changes taking effect only after MHA approval.

2021

The 2015 Rules introduced five-year validity for FCRA registrations. Most organizations registered before those amendments received renewed certificates effective November 1, 2016, expiring October 31, 2021.

On September 30, 2021, the MHA issued Public Notice No. II/21022/23(22)/2020-FCRA-III, extending until December 31, 2021 the validity of certificates expiring between September 29, 2020 and December 31, 2021, but only for organizations that had submitted renewal applications on time. Organizations that failed to apply before expiry lost authorization to receive foreign contributions as of November 1, 2021, although Rule 12(8) allowed delayed applications for up to one year upon reasonable justification.

2022

In July 2022, the government rescinded the requirement that FCRA recipients disclose foreign contributions quarterly within 15 days after each quarter.

2024

As of March 2024, hundreds of organizations that had timely applied to renew registrations expiring on September 30, 2021 were still awaiting decisions. The MHA extended the validity of pending registrations until June 30, 2024. Although this provided temporary relief, some foreign funders remained reluctant to make grants until final renewal, and several organizations were denied renewal.

2026

On June 22, 2026, the Ministry of Home Affairs issued the Foreign Contribution (Regulation) Amendment Rules, 2026, further tightening access to resources for foreign-funded organizations. The new Rules require FCRA-registered organizations to identify approved purposes and geographic areas for foreign-funded activities, with government approval required for subsequent changes. The rules also expand reporting and disclosure obligations, introduce additional donor-transparency requirements, bar organizations with foreign nationals as key functionaries from receiving FCRA approval, and impose new spending and utilization thresholds for maintaining registration and receiving future installments of foreign funding. Civil society groups raised concerns that the amendments increase compliance burdens and further restrict access to foreign funding, particularly for smaller organizations and those operating across multiple regions.

Domestic Funding

CSOs may raise domestic funds through lawful means, including donations, grants, sponsorships, and fundraising events. Under Section 11(4A) of the Income Tax Act, 1961, income from business activities incidental to an organization’s charitable purpose may remain tax-exempt if the organization maintains separate books and accounts. Certain activities, such as renting an auditorium, are not treated as business income.

Local religious mandals, associations, and societies that are unregistered but seek donations for charitable or religious purposes must obtain prior permission. A permission certificate is valid for six months and must be renewed to continue fundraising. Alternatively, such groups may register as charitable trusts or societies under the Societies Registration Act, 1860.

The Finance Act has also affected domestic funding:

• The Finance Act, 2008 redefined “charitable purpose” to exclude trade, commerce, and business activities from tax exemption under the category “advancement of any other object of general public utility.”
• The Finance Act, 2015 narrowed the 2008 restriction by allowing receipts from such activities to qualify as charitable when they do not exceed 20 percent of total receipts in a fiscal year.
• The Finance Act, 2017, passed on March 30, 2017:
  • Prohibited corpus donations from one charity to another;
  • Made tax exemption under Sections 11 and 12 conditional on timely filing of tax returns; and
  • Required donations exceeding INR 2,000 to be made by check or electronic transfer in order to qualify for tax deductions.

On April 18, 2017, the Maharashtra state cabinet also approved amendments to the Maharashtra Public Trust Act, 1950. The amendments require unregistered organizations or individuals seeking donations to obtain permission from the assistant or deputy charity commissioner and subject their donations and transactions to audit by the charity commissioner. Fundraising without permission may result in up to three months’ imprisonment, a fine of up to 1.5 times the amount collected, or both.

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.

New foreign funding rules undermine the right to freedom of association (July 2026)
On June 22, 2026, India’s Ministry of Home Affairs adopted the Foreign Contribution (Regulation) Amendment Rules granting the Indian government sweeping new powers to police the activities, operation, management and leadership of non-governmental organizations (NGOs) receiving foreign funding. The new rules apply to nearly 14,500 organizations that currently hold a FCRA license, and to all non-profits who may want to apply in the future. Existing non-profit organizations now face a one-year deadline to bring their registration in line with a far more limiting framework, or risk losing the ability to carry out their work altogether.

New foreign funding rules tighten control over civil society (July 2026)
On June 22, 2026, India’s Ministry of Home Affairs adopted the ‘Foreign Contribution (Regulation) Amendment Rules’, granting the Indian government sweeping new powers to police the activities, operation, management and leadership of non-governmental organizations receiving foreign funding. The amendments significantly expand an already restrictive legal framework established under the ‘Foreign Contribution (Regulation) Act’ (FCRA), 2010, which regulates the receipt and use of foreign contributions by individuals and organizations in India. It prohibits contributions for activities deemed to be detrimental to the ‘national interest,’ an overbroad term open to misuse.

New FCRA Rules and the debate over foreign funding (June 2026)
The Union government has tightened the rules governing foreign funding received by NGOs and associations under the Foreign Contribution (Regulation) Act (FCRA), 2010. The latest amendments to the Foreign Contribution (Regulation) Rules, notified in June 2026, require greater disclosure from organizations, including details of social media accounts, approved activities and geographical areas of operation.

CSR norm tweak to boost social stock exchanges (May 2026)
The corporate affairs ministry now allows companies to deploy up to 10% of their annual corporate social responsibility (CSR) spending through zero coupon zero principal instruments issued by not-for-profit organisations listed on recognised social stock exchanges. Analysts say the move could provide a much-needed boost to social stock exchanges in India, which have struggled to attract sufficient investors.

Charitable trusts challenge I-T dept’s irrevocability clause (March 2026)
Scoffing at a seemingly absurd demand from the tax office, India’s public charitable trusts have moved the court. They are challenging the Income Tax (I-T) department’s demand that trust deeds must unambiguously state that the trust is ‘irrevocable’ – which cannot be changed or reversed.

India faces criticism over proposed expansion of foreign funding rights on NGOs (March 2026)
Human rights watchdog Amnesty International warned that India’s proposed extension of restrictions on overseas funding for non-governmental organizations (NGOs) would curtail civil society space and undermine fundamental rights. Through the Foreign Contribution Bill 2026, the government seeks to expand and prolong regulatory controls under the existing Foreign Contribution (Regulation) Act 2010 (FCRA) framework. Amnesty International further stated that the proposed amendments would “restrict access to foreign funding” and exacerbate an already “punitive and restrictive environment” for NGOs operating in India.

US Christian Leaders Ask India to Withdraw FCRA (March 2026)
The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced on March 25, 2026, would empower a government authority to seize assets built by religious and charitable organisations whenever their FCRA registration lapses or is canceled — even through bureaucratic delay. We call on the Government of India not merely to defer this bill, but to withdraw it.

Delhi High Court sets aside tax dept notice on NGO status (August 2025)
In a relief to the Commonwealth Human Rights Initiative (CHRI), the Delhi High Court set aside a notice issued under the Income Tax Act that sought to cancel the NGO’s registration as a charitable institution. The bench of Justices V Kameswar Rao and Vinod Kumar set aside the notice and allowed CHRI’s petition. FCRA cancellation implies that the organization cannot accept foreign contributions.

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.

Income Tax Law, 2025

The Income Tax Act, 1961 was repealed, and the new Income Tax Act, 2025 came into force on April 1, 2026. Under the new law, the fundamental principles governing tax exemptions and tax deductions remain unchanged. Accordingly, earlier case law on these issues will continue to apply. The new Act uses the term “Registered Non-Profit Organisation” instead of “charitable trusts and institutions,” as used under the previous law. This change aligns the terminology with internationally used standards.

In addition, the Income Tax Act, 2025 protects the eligibility of all currently registered NPOs. Organizations with valid registrations under Sections 12A, 12AA, 12AB, or Section 10(23C) may continue to claim tax benefits, provided their registrations have not been cancelled. This allows them to transition smoothly under the revised framework without losing their existing tax benefits.