New Delhi: Fully convinced that it’s important to keep a tab on the finances of the NGOs and Trusts in order to check the flow of black money, the Central government has once again decided to amend the Foreign Contribution Regulation Act 2010.

For amending the Act, the government has asked the Institute of the Charted Accountants of India (ICAI) to suggest measures to check generation of black money in the country. The recommendations of ICAI would be the basis of the proposed amendments in the FCRA.

Apprising about the importance of keeping a vigil on the income source of NGOs and arrangements to maintain records of foreign funds, ICAI President G Ramswami said, "There should be provisions to maintain transparency in the income and the funds received by these private organisations. Within few days detailed report of the suggestions will be submitted to Central Board of Direct Taxed (CBDT).”

The Foreign Contribution Regulation Act was enacted in the year 2010. It came into effect from May 2011. Apparently, the law was implemented to keep a tab on the working of NGOs and trusts, and their source of income generation. To some extent, the government was successful to make the entire process of foreign funding transparent.  However, government still holds a view that changes in the existing act will bring into light the illegal activities.

Ramaswami informed that over the last five years, several NGOs and Trusts running in the country have received Rs 42,000 crore as foreign aid.

According to the Act, the NGOs have to provide details about their income and its source. However, government believes that if Indian organisations receive foreign aid illegally, then also the Indian agency should be made responsible for it, so that they become cautious in taking foreign assistance.