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As we are aware, section 80G of the Income Tax Act,1961 provides for deduction on payment of donations. Until the last financial year there was no way to counter check the accuracy of the donations paid. The Income Tax department allowed deduction based on the claim made by the assessee or at most based on the copy of the donation receipt presented by the assessee.

However, the CBDT through notification no. 19/2021 dt 26th March, 2021, has notified Form 10BD and Form 10BE to facilitate more transparency and accuracy on the reconciliation of  deductions claimed by the assessee and donations received by the Charitable Organizations.

What is Form 10BD?

Form 10BD is a statement of donations containing the details of donations received by the Charitable Organizations during the financial year.

Procedure and Time Limit for Filing Form 10BD

The form is required to be filed electronically by donation receiving organizations. The form shall be signed through a digital signature of a person authorized to sign the return of income. Alternatively, it can also be filed through Electronic Verification Code (EVC). The form is required to be filed once in a financial year. The last date for filing the form for Financial Year 2021-22 is 31st May, 2022.

Form 10BD - Statement and Certificate of Donation

Details for Filing Form 10BD

Every charitable organization is required to collect requisite details/information from donors  while receiving the donations and maintain the list of the same. The details/information required for filing the form are as follows:

  1. Name of the Donor
  2. PAN/Aadhaar number/ Tax Identification Number of the Donor
  3. Address of the Donor
  4. Nature of Donation
  5. Mode of Receipt
  6. Amount of Donation
  7. Section code under which the donation is received

Issuance of Certificate of Donation

Post filing of Statement of Donations in Form 10BD, the charitable organization is required to download and issue Certificate of Donation in Form 10BE. The certificate shall contain details of Charitable organization like Name of the organization, PAN, Address, approval numbers u/s 80G & 35(1) along with details of donations and donor. For the financial year, 2021-22 Form 10BE is to be issued by 31st May 2022.

Procedure for Correction of Error in Certificate of Donation

In case of any inadvertent errors or mistakes in Form 10BE, then there are provisions to rectify the errors or mistakes by filing a correction form (filing Form 10BD again with corrections).


Consequences of Non-filing of Form 10BD

The reporting entity is mandated to comply with the filing of Form 10BD and failure to comply will attract a fee of Rs.200/- per day of delay as per newly inserted section 234G.

Apart from the fee for delay in furnishing statement of donations in Form 10BD, failure to file such statement will also attract penalty u/s 271K, which shall not be less than Rs.10,000/- but may extend up to Rs.1,00,000/-

With the introduction of Form 10BD, it is now crucial for the donor to not only obtain a donation receipt but also a Certificate of Donation in Form 10BE in order to claim deduction.

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Category Income Tax, Other Articles by - Neethi V. Kannanth