Provisions of foreign contribution (Regulation) Act, 2010
Q. Which of the following statements is/are correct about foreign contribution (Regulation) Act, 2010?
1. Under the act no political party can receive foreign funds as donation.
2. Foreign funds cannot be used for speculative business; not use more than 50 per cent of its received for administrative purposes.- Published on 08 Sep 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Both
Every bank or authorized person in foreign exchange shall report to such authority prescribed amount of foreign remittance and the source and manner in which the foreign remittance was received. Any organizations receiving funds over Rs10 lakh, the bank will immediately inform the government to enable the agencies to "track" the funds. Under the new Act, a person granted prior permission to receive foreign contribution shall utilize it for the purposes for which it has been received, it cannot be used for speculative business; not use more than 50 percent of its received for administrative purposes. As per the act, no foreign contribution shall be accepted by any political candidate for election; member of any legislature, political party or office-bearer thereof and organization of a political nature as may be specified.
