Section 8 — Restriction to utilise foreign contribution for administrative purpose

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Chapter IIRegulation of foreign contribution and foreign hospitality

What this section provides

Administrative expenditure out of foreign contribution is capped at the statutory percentage unless prior Central Government approval is obtained for excess. After the 2020 amendment the statutory ceiling is 20% of foreign contribution received in a financial year. Rule 5 defines administrative expenses and, from 1 January 2025, permits carry-forward of unspent allowable administrative expenses to the immediately succeeding year for reasons disclosed in FC-4.

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

← Section 7 — Prohibition to transfer foreign contribution to other pers Section 9 — Power of Central Government to prohibit receipt of foreign →

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