If an NGO having FCRA Registration does not receive any foreign contribution, even then it should file nil FCRA returns. It is mandatory to file for FC-3 every year as long as the NGO wants to validly retain its registration. The Ministry of Home Affairs (FCRA division) in its press note dated 09.01.1998 has specifically clarified that even if no foreign contribution is received, filing of nil return is mandatory. In the same press note it has been clarified that non-submission of return in time or furnishing of false submission would constitute violation of the provision of the Act and attract penal consequences. Press note, date 09.01.1998 issued by The Ministry of Home Affairs has been annexed in Annex. 10.1
The FC-3 form is required to be signed by the Chief Functionary of the NGO and a certificate is also required to be given by a Chartered Accountant giving a brief summary of the FCRA funds movement and the opening & closing balances of FCRA Funds.
The Term "Chief Functionary" has not been defined in the FCRA Act or Rules. Normally the head of the NGO should be construed as the Chief Functionary. The NGO may also designate any office bearer as the Chief Functionary through a General Body/Governing Body resolution, for the purposes of filing the FCRA returns, Forms etc.
