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Foreign Contribution (Regulation) Act, 2010 · Section guide

Section 4 — Persons to whom section 3 shall not apply

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Chapter IIRegulation of foreign contribution and foreign hospitality

What this section provides

Section 3’s prohibition does not apply, subject to section 10, to foreign contribution accepted: as salary, wages or other remuneration from a foreign source, or as payment in the ordinary course of business transacted in India by that source; in the course of international trade or business transacted outside India; as an agent of a foreign source in transactions with the Central or a State Government; as a gift or presentation to a member of an Indian delegation, accepted in accordance with the Government’s rules; from a relative; as a remittance received in the ordinary course of business through an official channel, post office or authorised person in foreign exchange under FEMA; or as a scholarship, stipend or similar payment. A contribution received for any other purpose is deemed accepted in contravention of section 3.

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.