Section 80G of the income tax act provides deductions to the assessees in case donations are made to the 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 was received. The due date for filing form 10BD 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 can be revised as well.
In Form 10BD, the organization shall furnish the following details of the donor:
1) PAN
2) Reporting Period
Identification of the Donor | ID Code |
PAN | 1 |
Aadhaar number | 2 |
Taxpayer identification number of the country where the person resides | 3 |
Passport number | 4 |
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. Following are the options available:
a) Section 80G
b) Section 35(1)(iia)
c) Section 35(1)(ii)
d) Section 35(1)(iii)
a) Corpus
b) Specific Grant
c) Others
Mode of Receipt: Mode through which the donation was received by the donor shall be furnished. This includes:
a) Cash
b) Kind
c) Electronic modes including account payee cheque/draft
d) Others
Amount of Donation: The amount of donation received in Indian rupees by the donee shall be furnished here.
Once the Form 10BD is filed by the donee organization, Certificates of Donation will be generated in Form 10BE 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 amount of donations. The penalty shall be paid before furnishing of Form 10BD.
Click here to preview the format of Form 10BD
In case of any query, please feel free to contact the ASC Group.
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