Rule 21 — Compounding of offence

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Governs compounding of compoundable FCRA offences and must be read with the current Central Government compounding notification and amount matrix.

Working notes

What to check: Identify the exact section/rule default.
Before you close the file: Calculate compounding amount from the current notification, not an old circular.

Compounding working rule

Use the Central Government notification in force on the date of compounding. The June 2026 notification uses contravention-specific formulas rather than a single flat amount; for example, breaches involving excess administrative expense, speculative use, unauthorised purpose or receipt/use without the required permission apply the notified minimum/formula for the relevant section. The calculator/checklist must identify the exact contravention before computing the amount.

Related on Finin2min

Foreign Contribution (Regulation) Act, 2010 — hub homeForeign Contribution (Regulation) Rules, 2011 — instrument guideFCRA statutory forms and portal workflow registerNGO compliance hubIndian Trusts Act, 1882 hubSocieties Registration Act, 1860 hub

Primary official sources

← Rule 20 — Revision Rule 23 — Authority to whom an application or intimation is to be sent →

Finin2min summary — explanatory text. The official Act, Rules, Regulations and notifications control if there is any difference. Educational and research resource, not legal, regulatory, tax or investment advice; verify the instrument in force on the relevant date.