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Section 9 of the Foreign Contribution (Regulation) Act, 2010: power to prohibit receipt of foreign contribution or hospitality

The Central Government may (a) prohibit any person or organisation not specified in section 3 from accepting foreign contribution, (b) require prior permission for foreign...

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October 2, 2026
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Last updated: October 2026Verified against: Government sources

Section 3 names the people who may not accept foreign contribution, and section 6 names those who need permission for foreign hospitality. Section 9 reaches everyone else. It gives the Central Government five powers over persons or classes of persons not named elsewhere, and a proviso says when those powers may be used.

This article reads section 9 as per the Act as enacted, read with the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), which did not change section 9. Later amendments should be checked. No order or notification under section 9 is in the texts consulted, and none is described.

The five powers in section 9

ClauseThe Central Government may
(a)Prohibit any person or organisation not specified in section 3 from accepting any foreign contribution
(b)Require any person or class of persons, not specified in section 6, to obtain prior permission before accepting any foreign hospitality
(c)Require any person or class of persons not specified in section 11 to furnish intimation, within the time and in the manner prescribed, of the amount of foreign contribution received, its source, the manner of receipt, and the purpose and manner of utilisation
(d)Without prejudice to section 11(1), require any person or class of persons specified in that sub-section to obtain prior permission before accepting any foreign contribution
(e)Require any person or class of persons, not specified in section 6, to furnish intimation, within the time and in the manner prescribed, of the receipt of any foreign hospitality, its source and the manner of receipt

If you are served with an order, or are told that a class to which you belong has been brought within section 9, our legal dispute resolution team can review it against the grounds in the proviso below. The clauses work in pairs. Clauses (a), (c) and (d) concern foreign contribution; clauses (b) and (e) concern foreign hospitality. Clause (a) goes beyond the persons barred by section 3, which explains why section 3(3) separately deals with currency received on behalf of persons "referred to in section 9"; see the article on section 3.

Clause (b) is the counterpart of section 6: where section 6 names the classes who need prior permission for foreign hospitality, clause (b) lets the Government add others; see the article on section 6. Clause (d) is the counterpart for money, applying to persons described in section 11(1), those with a definite cultural, economic, educational, religious or social programme, so even a person who could otherwise register can be made to get prior permission each time; section 11 is explained in its own article.

The "time" and "manner" of intimation in clauses (c) and (e) are to be prescribed. The prescribed intimation under the Rules is not described in this article.

The proviso: five grounds

The proviso says no such prohibition or requirement shall be made "unless the Central Government is satisfied that the acceptance of foreign contribution by such person or class of persons, as the case may be, or the acceptance of foreign hospitality by such person, is likely to affect prejudicially":

  1. the sovereignty and integrity of India; or
  2. public interest; or
  3. the fair and uninfluenced conduct of an election to any Legislature; or
  4. friendly relations with any foreign State; or
  5. harmony between religious, racial, social, linguistic or regional groups, castes or communities.

The satisfaction must be that the acceptance "is likely to affect prejudicially" one of these interests. The test is a likelihood of prejudice; actual harm is not required by the words. The proviso is a limit on the Government: a prohibition or requirement made without this satisfaction is outside the section. The text is silent on the form in which satisfaction is recorded or notified.

Example (invented). Suppose the Central Government were satisfied that foreign contribution received by a named class of local clubs was likely to affect public interest prejudicially. Under clause (a) it could prohibit those clubs from accepting foreign contribution, or under clause (d) it could require them to obtain prior permission first. The example is only an illustration of the power; no such order is described.

Who is affected, and what follows

Section 9 matters to organisations in three ways.

  • A prohibition under clause (a) takes a person or organisation out of the field of acceptance. Section 35 punishes whoever accepts, or assists any person, political party or organisation in accepting, foreign contribution in contravention of any provision of the Act or any rule or order made under it; see sections 35 and 36.
  • An intimation under clause (c) or (e) must be correct. Section 33(a) makes giving false intimation under clause (c) of section 9 or under section 18 an offence. The section 33 text calls it "sub-section (c) of section 9", a drafting slip; section 48(2)(g) calls it "clause (c) of section 9". See sections 33 and 34.
  • A person or association referred to in section 9 who is aggrieved by an order of the Central Government refusing to give permission under the Act may, within sixty days from the date of the order, prefer an appeal to the High Court under section 31(2); see the article on section 31.

Because section 9 can reach new classes by order, an organisation should keep a watch on notifications and orders of the Ministry.

Need help with an order under section 9?

An order that prohibits acceptance or demands prior permission changes how an organisation can operate. If one has been issued or proposed, you can contact our legal dispute resolution practice with a copy of the order and the background facts.

Key takeaways

  • Section 9 gives the Central Government five powers over persons and classes not covered by sections 3, 6 and 11.
  • Three powers concern foreign contribution (prohibit, require intimation, require prior permission) and two concern foreign hospitality.
  • No prohibition or requirement may be made unless the Government is satisfied that acceptance is likely to affect one of five interests prejudicially.
  • Breach of an order can be an offence under the Act; false intimation under clause (c) is covered by section 33.
  • An appeal lies to the High Court within sixty days under section 31(2) against an order refusing permission.

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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 9

  • 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 can the Central Government do under section 9?

It can prohibit acceptance of foreign contribution by persons not specified in section 3, and require prior permission or intimation for foreign contribution or foreign hospitality, subject to the proviso.

On what grounds can it act?

Only where it is satisfied that acceptance is likely to affect prejudicially the sovereignty and integrity of India, public interest, the fair and uninfluenced conduct of an election to any Legislature, friendly relations with any foreign State, or harmony between religious, racial, social, linguistic or regional groups, castes or communities.

Do not copy last year's filing without checking whether last year's law still applies.

— TaxClue Compliance Desk

Section 9: 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.

It can prohibit acceptance of foreign contribution by persons not specified in section 3, and require prior permission or intimation for foreign contribution or foreign hospitality, subject to the proviso.

Only where it is satisfied that acceptance is likely to affect prejudicially the sovereignty and integrity of India, public interest, the fair and uninfluenced conduct of an election to any Legislature, friendly relations with any foreign State, or harmony between religious, racial, social, linguistic or regional groups, castes or communities.

Clause (d) applies to persons specified in section 11(1) and requires prior permission before accepting foreign contribution, without prejudice to that sub-section.

Section 33(a) refers to false intimation under section 9(c) or section 18, punishable on conviction with imprisonment up to six months, or fine, or both.

No. No order or notification under section 9 is in the texts consulted.

Section 31(2) lets any person or association referred to in section 9 who is aggrieved by an order refusing to give permission under the Act appeal to the High Court within sixty days from the date of the order.