Form 10BD, period and amount?

Hey Shiraz,

Good questions! Here’s how it generally works with Form 10BD and Form 10B for donations received through intermediaries like online payment gateways:

1. Year of Receipt in Form 10B:

• The date of receipt of donation is the date when the NGO actually receives the funds in its bank account — i.e., when the agency transfers the money (after deductions).

• So, if the donor paid in March but the NGO’s account gets credited only in April, the donation is considered received in April (next financial year).

• Consequently, the donation will be shown in the FY in which the funds are actually credited to the NGO’s account (not the date donor paid).

2. Amount of Donation in Form 10BD:

• The amount to be disclosed is the actual amount received by the NGO, i.e., the net amount credited after deducting any taxes, charges or fees by the agency.

• So, if donor pays ₹1,000 but the NGO receives only ₹800 after deductions, the donation recorded and declared in Form 10BD should be ₹800.

• Even if the NGO issues the 80G receipt for ₹1,000, for audit and Form 10BD reporting, the amount received in books of account and bank statement is the amount relevant.

Why?

• The tax laws and reporting are concerned with actual receipts credited to the trust/NGO’s bank account.

• The donor’s receipt date and amount can differ from actual receipt due to intermediaries, but Form 10BD is about actual receipts as per books.