FCRA is cancelled. Whether i am liable to file annual returns?

FCRA & FCRR
1

Dear All

My Friend’s FCRA registration is cancelled. Is there legal obligation to file FCRA returns?

2

Yes, FC 4 has to be filed for the financial year in which registration cancelled reporting FC receipts and utilization during the period of the FY when registration was valid. For instance, if the registration is cancelled in Jan 2026, FC 4 has to be filed for FY 25-26 even if it is Nil return latest by 31st Dec 2026.

CS Sharad Bhargava

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3

For the year of cancellation, FCRA return must be filed for the period the registration was valid.

For subsequent years, it is advisable to continue filing FCRA (Nil) returns, especially if re-registration is intended.

If any foreign contribution remains in the FCRA bank account, utilisation is allowed only if the FCRA registration is obtained again. For reapplication, all pending FC4 returns must be filed. If filed after the due date, penalties/compounding fees will have to be paid.