Section 80G of the income tax act provides deductions to the assessees in case donations are made to eligible institutions, charitable organizations, and funds approved by the government (herein referred to as donee). However, the government noticed that there was no mechanism in place to counter-check whether the assessees claiming deduction under section 80G actually made the donations. Therefore, to counter-check such deductions, the government introduced a Statement of Donations in Form 10BD that is required to be filed by the donee. Let’s understand what is Form 10BD and how it will facilitate the government in cross-checking the donations made by the donors.
Form 10BD [see rule 18AB) is the statement of donations that the donee organizations shall be required to furnish on or before 31st May immediately following the end of the financial year in which donations were received. The due date for filing form 10BD of income tax act for the financial year 2021-22, being the first FY for this form, is 31st May 2022.
The organizations being a trust, research institutions, colleges, universities or other institutions or funds covered under the following sections shall be required to file Form 10BD:
Form 10BD shall be filed online from the income tax portal. Following are the steps to file Form 10BD:
Further, in case of any errors, Form 10BD of income tax act can be revised as well.
In Form 10BD, the organization shall furnish the following details of the donor:
Part-A: Details of the reporting person reporting the donations
2) Reporting Period
Part-B: Details of the donors and the donations
|Identification of the Donor||ID Code|
|Taxpayer identification number of the country where the person resides||3|
|Elector’s photo identity number||5|
|Driving license number||6|
|Ration card number||7|
Section Code: The section under which the donor shall be allowed to claim a deduction for donations shall be entered here. The following are the options available:
a) Section 80G
b) Section 35(1)(iia)
c) Section 35(1)(ii)
d) Section 35(1)(iii)
b) Specific Grant
Mode of Receipt: Mode through which the donation was received by the donor shall be furnished. This includes:
c) Electronic modes including account payee cheque/draft
Amount of Donation: The amount of donation received in Indian rupees by the donee shall be furnished here.
Once the Form 10BD of income tax act is filed by the donee organization, Certificates of Donation will be generated in Form 10BE of income tax act that shall be furnished by the donee organizations to the donors. The donations made shall be reflected in Form 26AS as well as the AIS of the donors on the basis of which, they will be able to claim deductions under Section 80G.
In case of failure to file Form 10BD, the donee organization shall be liable to pay a penalty of Rs. 200 for each day during which such default continues. However, the amount of penalty shall not exceed the number of donations. The penalty shall be paid before furnishing Form 10BD.
Click here to preview the format of Form 10BD
In case of any queries about Form 10BE of income tax act, please feel free to contact the ASC Group.
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