Applied example
A health-project permission for one donor cannot be reused for a second donor or education activity; the association seeks the legally appropriate fresh approval before receipt.
NGO, FCRA and tax control
Charter for associations granted prior permission
Prior permission is donor-, amount- and purpose-specific. It does not become a general registration. The holder must receive through the lawful FCRA Account, utilise only for the approved project, keep separate accounts and file the annual return.
Controlling law and exact effect
Authority: MHA Charter dated 29 January 2021, read with sections 11, 12, 17 and 18
Provision and paragraph decode
| Control | What to establish |
|---|---|
| Trigger | grant of a prior-permission order and every receipt or utilisation under it |
| Evidence pack | FC-3B, permission order, donor commitment, approved budget, designated account, project ledger, vouchers, assets and FC-4 |
| Timing | follow every condition in the permission order and the ordinary annual reporting deadline |
| Legal result | Prior permission is donor-, amount- and purpose-specific. It does not become a general registration. The holder must receive through the lawful FCRA Account, utilise only for the approved project, keep separate accounts and file the annual return. |
Working workflow
- Substantiate.
Assemble FC-3B, permission order, donor commitment, approved budget, designated account, project ledger, vouchers, assets and FC-4 and reconcile it to books, bank records and prior filings. - Decide and close.
Apply follow every condition in the permission order and the ordinary annual reporting deadline, obtain approval where required, preserve submission evidence and monitor the resulting restriction or next deadline.
Practical example and highlighted point
Do not miss
Exam and advisory case study
A trust has a facially complete document but one fact conflicts with MHA Charter dated 29 January 2021, read with sections 11, 12, 17 and 18.
Finin2min summary and Q&A
Summary: Prior permission is donor-, amount- and purpose-specific.
What should the audit file contain?
FC-3B, permission order, donor commitment, approved budget, designated account, project ledger, vouchers, assets and FC-4, together with the legal conclusion, filing or payment proof and follow-up action.
Primary official sources and related links
Page-specific official source | FCRA Act, 2010 | FCRA portal
MHA 2021 FCRA Charter: Practical Reading Guide
The MHA charter for associations granted FCRA registration or prior permission is a useful operational explanation, but it is a 2021 document. By October 2026, newer amendments must prevail wherever they change an instruction.
How the legal framework applies
The charter explains five-year registration, project-specific prior permission, the SBI NDMB receipt account and annual returns. It also describes how the law changed after 2020. However, the administrative-expense discussion must use the amended 20% rule; and the forms were modified in 2024, 2025 and 2026. This page therefore treats the charter as explanatory context, not an exact consolidated code.
Evidence, filings and practical controls
Build a two-column compliance chart. In the first column record the charter’s obligation; in the second map it to the current Act, amended Rules and official portal version. For example, cross-check FC-3C renewal timing against a certificate’s own date and any later extension notice, while matching the FC-4 annual return to the current form. Any old bank advice must be rechecked against updated SBI directions.
Worked scenario
A training team copies a 2021 slide about how to calculate FCRA overheads, then uses the figure for a 2026 grant proposal. Without comparing the subsequently amended statute and Rules, it risks misstating the cap. A versioned charter map prevents training material from becoming an accidental source of current-law error.
Common mistakes to avoid
- Mark historical guidance by its own publication date.
- Check original instrument text where notice and statute differ.
- Do not call a ministry charter a waiver of express legal duties.
Frequently asked question
- Can the 2021 MHA charter be used without checking later amendments?
- No; its explanations should be reconciled against the current statutory instruments and later notifications.