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Section 5 of the Foreign Contribution (Regulation) Act, 2010: how an organisation of a political nature is notified

The Central Government may, by an order published in the Official Gazette, specify an organisation as one of a political nature, not being a political party. It must first give a...

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Last updated: October 2026Verified against: Government sources

Under section 3(1)(f) an "organisation of a political nature" cannot accept foreign contribution, but only if it has been specified as such. Section 5 sets out the procedure for specifying one: a written notice, a chance to answer, an optional report and an order within fixed time limits.

This article reads section 5 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), which did not change section 5. Later amendments should be checked.

Section 5(1): the power to specify

The Central Government may, "having regard to the activities of the organisation or the ideology propagated by the organisation or the programme of the organisation or the association of the organisations with the activities of any political party", specify an organisation by an order published in the Official Gazette as an organisation of a political nature, not being a political party, referred to in section 3(1)(f). Four considerations are named: activities, ideology, programme and association with the activities of a political party.

The proviso to sub-section (1) lets the Central Government, by rules, frame guidelines specifying the ground or grounds on which an organisation shall be specified. The guidelines are in rule 3 of the Rules; the rule is explained in the article on rule 3 and the guidelines for declaring an organisation of a political nature, and this article does not state its content.

Section 5(2): notice in writing

Before making an order under sub-section (1), the Central Government must give the organisation concerned "a notice in writing informing it of the ground or grounds, on which it is proposed to be specified". The words "ground or grounds" matter: an organisation entitled to a notice is entitled to know the case against it. An organisation that receives such a notice should take legal dispute resolution advice, read the grounds carefully against the guidelines and put together its documents at once, because the clock in sub-section (3) runs from the date of the notice.

Section 5(3): representation within thirty days

The organisation to whom a notice has been served "may, within a period of thirty days from the date of the notice, make a representation to the Central Government giving reasons for not specifying such organisation". The proviso adds that the Central Government may entertain the representation after thirty days "if it is satisfied that the organisation was prevented by sufficient cause from making the representation within thirty days".

The period runs "from the date of the notice", not from the date it is received. If the notice reaches you late, say so in the representation and give the reason for any delay, so the proviso can be considered.

Section 5(4) and (5): report and order

  • Sub-section (4): the Central Government may, "if it considers it appropriate", forward the representation to any authority to report on it.
  • Sub-section (5): the Central Government may, "after considering the representation and the report of the authority referred to in sub-section (4)", specify the organisation as one of a political nature, not being a political party, and make an order under sub-section (1) accordingly.

The text does not say who the "authority" in sub-section (4) is. It is not named in the texts consulted.

Section 5(6): the time limits

Every order under sub-section (1) shall be made within one hundred and twenty days from the date of issue of the notice under sub-section (2). The proviso says that if no order is made within that period, the Central Government shall, after recording the reasons, make an order within sixty days from the expiry of the one hundred and twenty days.

StepProvisionPeriod or requirement
Notice of grounds5(2)In writing, before any order
Representation5(3)Within thirty days of the date of notice; later if sufficient cause
Report on representation5(4)Optional, if considered appropriate
Order5(5), 5(6)Within one hundred and twenty days from issue of notice
Further timeProviso to 5(6)Sixty days after expiry, after recording reasons

The two periods can be added to give a longest period of one hundred and eighty days from the notice, but the text reaches that only through the proviso and only after reasons are recorded. The text does not say what follows if no order is made even within the extended period; it is silent on that point.

Example (invented). The Central Government issues a notice to Jan Sampark Manch, a registered society, on 1 April proposing to specify it as an organisation of a political nature, citing its association with the activities of a political party. The society has thirty days from the date of the notice to reply with its reasons. If the Government forwards the reply for a report, the order is still to be made within one hundred and twenty days from the notice, unless reasons are recorded and the further sixty days used.

What follows from an order

Once an order is made, the organisation is within section 3(1)(f) and cannot accept foreign contribution; see section 3. Section 4's exceptions apply to persons "specified" in section 3, and section 4 is explained in the article on persons to whom section 3 does not apply.

An organisation referred to in section 3(1)(f) aggrieved by an order made in pursuance of section 5 may, within sixty days from the date of the order, appeal to the High Court under section 31(2); the details are in the article on section 31. No order, notification or guideline made in a particular case is described here. This article describes only what section 5 says.

Need help responding to a notice?

A notice under section 5(2) starts a short clock. If your organisation has received one, or you want to understand how your programme would be viewed against the guidelines, speak to our legal dispute resolution practice before the thirty days run out.

Key takeaways

  • Only an organisation specified by an order under section 5(1) is caught by section 3(1)(f).
  • A written notice of the grounds must come first, under section 5(2).
  • The organisation has thirty days from the date of the notice to make a representation, extendable for sufficient cause.
  • The order must be made within one hundred and twenty days, and in default within a further sixty days after recording reasons.
  • An appeal lies to the High Court within sixty days under section 31(2).

Read next

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.

Quick recapKey facts & short answers

Key Facts About Section 5

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What does "organisation of a political nature" mean?

Section 5(1) lets the Central Government specify an organisation by order, having regard to its activities, ideology, programme or association with a political party's activities, and the guidelines are in the Rules.

How long do we have to reply to a notice?

Thirty days from the date of the notice under section 5(3), with discretion to entertain a later representation if there was sufficient cause.

When in doubt, read the provision itself rather than a summary of it — including this one.

— TaxClue Compliance Desk

Section 5: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Section 5(1) lets the Central Government specify an organisation by order, having regard to its activities, ideology, programme or association with a political party's activities, and the guidelines are in the Rules.

Thirty days from the date of the notice under section 5(3), with discretion to entertain a later representation if there was sufficient cause.

The proviso to section 5(6) allows an order within sixty days after the one hundred and twenty days, if the Government records reasons.

No. An order under section 5 specifies an organisation "not being a political party".

Section 31(2) allows an appeal to the High Court within sixty days from the date of the order for an organisation referred to in section 3(1)(f) aggrieved by an order made in pursuance of section 5.

The proviso to section 5(1) provides for guidelines framed by rules; they are in rule 3, explained in the linked article.