Rule 5 Administrative expenses
- Chapter
- I · Rules
The following shall constitute administrative expenses:—
(i) salaries, wages, travel expenses or any remuneration realised by the 1Subs. by S.O. 3272(E), dated 22nd June, 2026 (Foreign Contribution (Regulation) Amendment Rules, 2026), for "Members of the Executive Committee or Governing Council of the person" in clause (i) and for "Members of the Executive Committee or Governing Council" in clause (iii).key functionaries of the person;
(ii) all expenses towards hiring of personnel for management of the activities of the person and salaries, wages or any kind of remuneration paid, including cost of travel, to such personnel;
(iii) all expenses related to consumables like electricity and water charges, telephone charges, postal charges, repairs to premise(s) from where the organisation or Association is functioning, stationery and printing charges, transport and travel charges by the 1Subs. by S.O. 3272(E), dated 22nd June, 2026 (Foreign Contribution (Regulation) Amendment Rules, 2026), for "Members of the Executive Committee or Governing Council of the person" in clause (i) and for "Members of the Executive Committee or Governing Council" in clause (iii).key functionaries and expenditure on office equipment;
(iv) cost of accounting for and administering funds;
(v) expenses towards running and maintenance of vehicles;
(vi) cost of writing and filing reports;
(vii) legal and professional charges; and
(viii) rent of premises, repairs to premises and expenses on other utilities:
Provided that the expenditure incurred on salaries or remuneration of personnel engaged in training or for collection or analysis of field data of an association primarily engaged in research or training shall not be counted towards administrative expenses:
Provided further that the expenses incurred directly in furtherance of the stated objectives of the welfare oriented organisation shall be excluded from the administrative expenses such as salaries to doctors of hospital, salaries to teachers of school etc.
2Ins. by G.S.R. 790(E), dated 31st December, 2024 (Foreign Contribution (Regulation) Amendment Rules, 2024), w.e.f. 1st January, 2025.Provided also that the association shall have the option to carry forward the unspent part of allowable administrative expenses in a financial yearDefined in rule 2(e): year means the financial year commencing from the 1st day of April and ending on the 31st day of March of the next calendar year; 2[(f) FCRA Account means the FCRA Account referred to in section 17 of the Act.] (2) Words and expressions used and not defined herein but defined in the Act shall have the meaning assign... to the immediately succeeding financial yearDefined in rule 2(e): year means the financial year commencing from the 1st day of April and ending on the 31st day of March of the next calendar year; 2[(f) FCRA Account means the FCRA Account referred to in section 17 of the Act.] (2) Words and expressions used and not defined herein but defined in the Act shall have the meaning assign..., for reasons to be mentioned in FormDefined in rule 2(c): Form means a form appended to these rules; 3[(ca) key functionary, in relation to a person other than an individual, includes— (i) the Director of a company; (ii) a partner in a firm; (iii) a trustee of a trust; (iv) the Karta of a Hindu undivided family; (v) an office bearer, member of the governing body, managin... FC-4.
1. Subs. by S.O. 3272(E), dated 22nd June, 2026 (Foreign Contribution (Regulation) Amendment Rules, 2026), for "Members of the Executive Committee or Governing Council of the person" in clause (i) and for "Members of the Executive Committee or Governing Council" in clause (iii).
2. Ins. by G.S.R. 790(E), dated 31st December, 2024 (Foreign Contribution (Regulation) Amendment Rules, 2024), w.e.f. 1st January, 2025.