Form 10BD or Form 10BE of Income Tax Act

May, 23 2022
Direct Taxation
By ASC Group

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.

What is Form 10BD?

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.

Who is Required to File Form 10BD?

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:

Section 80G(5)(viii) of the act
Section 35(1A) (i) of the act.

How To File Form 10BD?

Form 10BD shall be filed online from the income tax portal. Following are the steps to file Form 10BD:

Login to the income tax portal.
Navigate as follows: E-file >> Income Tax Forms >> File Income Tax Forms
Select ‘Persons not dependent on any source of income
Select ‘Tax exemptions and reliefs (Form 10BD)’
Select the financial year and click on ‘Continue’.
Click on the ‘Provide Details’ tab. A dashboard for filing Form 10BD will appear. Click on ‘Let’s Get Started’.
Furnish the required details in the form. The form is divided into 3 parts i.e., ‘Basic Information’, ‘Details of the Donors and Donations’, and ‘Verification’.
Basic Information is auto-filled and no details are required to be filled in by the user. Click on ‘Confirm’ to proceed.
After that, select the second part - ‘Details of the Donors and Donations’. Download the template to furnish the requisite details. A CSV file will be downloaded in which all the data shall be furnished.
Once the data is filled, the CSV file shall be uploaded to the portal.
Click on the verification tab and insert the relevant details for verification and save the details.
Preview the form. If the details are correct, then click on ‘Proceed to E-verify’. Confirm the details and e-verify the form using either the Aadhaar OTP, DSC, or EVC.
Click on ‘Continue’ to e-verify the form.
Click on ‘Yes’ to file the form.
Download the acknowledgment.

Further, in case of any errors, Form 10BD of income tax act can be revised as well.

Particulars of Form 10BD

In Form 10BD, the organization shall furnish the following details of the donor:

Part-A: Details of the reporting person reporting the donations

1) PAN
2) Reporting Period

Part-B: Details of the donors and the donations

Sr. No.
Pre-Acknowledgement No.: It shall be left blank at the time of the original filing of Form 10BD. An acknowledgment number is generated after Form 10BD is filed. However, in case a revised Form 10BD is required to be filed, then a pre-acknowledgment number shall be furnished that was generated after the filing of the original Form 10BD.
Unique Identification Number of the donor: The identification number as mentioned in the ID proof of the donor shall be furnished here. Primarily, PAN or Aadhaar card shall be furnished. In case the donor does not have PAN or Aadhaar card, then other relevant ID proof as mentioned below can be furnished.
ID Code: Here, the code number relevant to the ID of the donor shall be furnished. Following are the ID codes allotted to each ID proof.

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. The following are the options available:

a)   Section 80G
b)   Section 35(1)(iia)
c)   Section 35(1)(ii)
d)   Section 35(1)(iii)

Unique Registration Number: The Unique Registration Number (URN) of the donee as mentioned in Sr. No. 5 of Form 10AC shall be furnished here.
Date of Issuance of Unique Registration Number: The date on which the URN of the donee has been issued shall be furnished here.
Name of the Donor: The name of the persons making the donations shall be furnished
Address of the Donor: The address of the donors shall be furnished here
Donation Type: One of the following shall be selected for the donations:

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 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.

Consequences of Non-Filing of Form 10BD

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.