Sections 44 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 44 to 47 are short machinery provisions in Chapter IX. Section 44 requires the prescribed authority to send returns to the Central Government. Section 45 protects the Government and its officers for things done in good faith. Section 46 lets the Central Government give directions. Section 47 lets it delegate its powers by notification, except the power to make rules.
This article reads these sections as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020); no paragraph of that Amendment Act changes sections 44 to 47. Later amendments should be checked. If a direction or a delegated order affects your organisation, a legal consultation can help you read it against the text below.
The prescribed authority furnishes returns and statements to the Central Government at such time and in such form and manner as may be prescribed (s.44). No suit or other legal proceedings lie against the Government, that authority or its officers for anything done in good faith under the Act (s.45). The Central Government may give directions to any other authority or any person or class of persons about carrying the Act into execution (s.46). It may delegate any of its powers or functions by notification, except the power to make rules under section 48 (s.47).
A note on the source copy
In the typed copy of the Act consulted, section 44 begins in the middle of a line, running on after the last words of section 43. Section 44 is therefore read from its own heading, "Returns by prescribed authority to Central Government", and the text below is the text of the Act, not an editorial division.
Section 44: returns by the prescribed authority
The section is a single sentence: "The prescribed authority shall furnish to the Central Government at such time and in such form and manner such returns and statements as may be prescribed."
- Who is the "prescribed authority"? Section 2(1)(p) says it means "an authority specified as such by rules made by the Central Government under this Act", and section 48(2)(b) lists that authority as a matter for rules. The texts consulted do not name the authority in any rule or notification. Rule 15, for example, speaks only of "the prescribed authority under the Act". So this article names none.
- What are the returns? The Rules held contain no rule that, on its face, prescribes the time, form and manner of the returns under section 44. Section 48(2)(z) lists this as a matter for rules. The text is silent on any rule made for it, and this article does not fill the gap.
- Who is bound? The duty is on the authority, not on a recipient of foreign contribution. A person holding a certificate has its own returns and intimations, which are explained in the article on sections 18 to 20.
Section 45: protection of action taken in good faith
"No suit or other legal proceedings shall lie against the Central Government or the authority referred to in section 44 or any of its officers in respect of any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of the provisions of this Act or, any rule or order made thereunder."
Read the section in parts:
- Who is protected. The Central Government, the authority referred to in section 44 (the prescribed authority), and "any of its officers".
- What is barred. A "suit or other legal proceedings" for loss or damage, caused or likely to be caused.
- What condition applies. The thing must be done, or intended to be done, in good faith, in pursuance of the Act, a rule or an order made under it.
The section protects against proceedings for loss or damage arising from good-faith action. It does not, in its words, take away the appeal in section 31 or the revision in section 32, which are remedies against orders; those are explained in the articles on section 31 and section 32. It also does not cover action that is not in good faith, which the text leaves outside the protection.
Section 46: directions by the Central Government
"The Central Government may give such directions as it may deem necessary to any other authority or any person or class of persons regarding the carrying into execution of the provisions of this Act."
- To whom. "Any other authority or any person or class of persons". The words reach beyond persons who hold a certificate. A class of persons, for instance, can be addressed together.
- On what subject. "Regarding the carrying into execution of the provisions of this Act". A direction must relate to carrying the Act into execution.
- Test. The Government gives such directions "as it may deem necessary". The section does not provide a form for the direction or a hearing before it is given, and does not say what follows if a direction is not complied with.
- Directions elsewhere in the Act. Section 46 is a general power. Specific orders, such as a prohibitory order under section 10 or an order under section 9, are made under their own sections.
No direction under section 46 is among the texts consulted, so none is described here.
Section 47: delegation of powers
"The Central Government may, by notification, direct that any of its powers or functions under this Act, except power to make rule under section 48, shall, in relation to such matters and subject to such conditions, if any, may be specified in the notification, be exercised or discharged also by such authority as may be specified."
| Element | What the text says |
|---|---|
| How | By notification |
| What can be delegated | Any power or function under the Act |
| What cannot | The power to make rules under section 48 |
| Conditions | Such matters and such conditions, if any, as the notification specifies |
| To whom | "Such authority as may be specified" |
| Effect | The power is exercised or discharged "also" by that authority |
The word "also" matters: the delegation adds an authority; the section does not say that the Central Government gives up its own power. No notification under section 47 is among the texts consulted, so who exercises which power today must be read from the current notification and the order in your hand.
Example (invented). The Asha Kiran Society receives an order from an officer who says he acts on a delegation. The Society should ask for the notification under section 47 that names the officer's authority and the matters and conditions it covers, and compare the order against it. If the order is a rule-making act, section 47 itself excludes it from delegation.
Need help reading a direction or a delegated order?
When an order or direction reaches your organisation, the first questions are who issued it, under which section, and by what authority. A legal consultation with our team can walk through the order, the notification relied on and your records.
Key takeaways
- Section 44 puts a duty on the prescribed authority to furnish returns and statements as prescribed; the authority is not named in the texts consulted.
- Section 45 bars suits and other legal proceedings for loss or damage from things done in good faith under the Act, a rule or an order.
- Section 46 lets the Central Government give directions to any other authority or any person or class of persons about carrying the Act into execution.
- Section 47 allows delegation by notification of any power except the power to make rules under section 48.
- Ask for the notification or order behind any direction or delegated action.
Read next
- Sections 42 and 43: power to call for information and investigation
- Sections 48 and 49: power to make rules and laying before Parliament
- Section 31: appeal
- Section 32: revision of orders by the Central Government
Disclaimer: Based on the Foreign Contribution (Regulation) Act, 2010 as enacted, read with the Amendment Act, 2020 and the other amendments named in this article, and on the Foreign Contribution (Regulation) Rules, 2011 as amended by the notifications named (latest consulted: S.O. 3272(E) dated 22 June 2026), as consulted on 2 October 2026. No consolidated official text was available; some provisions rest on a third-party copy and are identified as such. Later amendments, notifications and Ministry of Home Affairs orders should be checked. This article is general information, not legal advice; check the official text before acting.