Last updated on December 9th, 2022 at 02:35 pm
So far, the Government had no option to find out whether the claims of deductions u/s 80G made by the taxpayer were correct or not. In order to bring transparency to the system, CBDT issued a notification no. 19/2021 dated 26th March 2021 to notify a Form 10BD to be filed by specified institutions providing specific details of donations made by donors and notify a Form 10BE certificate of donation which taxpayers will require to claim the deduction u/s 80G.
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Form 10BD is a statement of donations received to be filed mandatorily as per section 80G(5)(viii) and as per section 35(1A)(i). It shall be furnished electronically using DSC or EVC.
Note: If no donation is received during the financial year, the above form is not needed.
Note: A corrected statement can be submitted for rectifying any mistake or to add, delete or update the information furnished in Form 10BD.
Note: Details from Form 10BD will reflect in Form 26AS and AIS.
Form 10BD is to be filed by the following:-
Institutions or Funds referred to in section 80G(2)(a)(iv)
In simple words, such Institutions or Funds are registered u/s 80G(2)(a)(iv) and eligible to collect donations and issue receipts for claiming the deduction under section 80G.
Note: Names of such institutions or funds are not specifically listed/included in the list of institutions or funds created by the Government and prescribed in section 80G. For e.g. National Defence Fund was set up by the Central Government, National Children’s Fund, etc.
Institutions incurring expenditure on research specified u/s 35(1) (ii)/(iia)/(iii)
Section 35(1)(ii) – An institution/association/university/college approved and notified by the Central Government has the main objective of undertaking scientific research.
Section 35(1)(iia) – A company registered in India and approved by the prescribed authority has the main objective of undertaking scientific research and development.
Section 35(1)(iii) – An institution/association/university/college approved and notified by the Central Government has the main objective of undertaking research in social science or statistical research.
The last date to submit the statement in Form 10BD is 31st May immediately following the end of the financial year in which the donation was received.
As per section 234G – Late fees of Rs. 200/- per day of delay. However, the maximum late fees should not exceed the amount of the donation.
As per section 271K – Failure to file Form 10BD will attract a minimum penalty of Rs 10,000/- and a maximum penalty of Rs 1,00,000/-.
As this will be a crucial record for the donors in order to claim deduction under the respective section. If an error was made in filing Form 10BD by the charitable organizations then the option to revise the form shall be given by CBDT.
There is no restriction on filing Form 10BD. It can be filed as many times as it is required.
Form 10BD is to be filed by every institution having approval under section 80G or section 35 and that has received donations. It is irrelevant whether the institution has provisional approval or regular approval.
In case if revised Form needs to be filed the same form needs to be filed but you need to select “revised” and not “original” and you need to enter the ARN to revise the form.
If the same donor, the same mode of payment, and the same type of donation and under the same section then you can consolidate the same and show it as one entry.
Trust/NGO (Donee) can revise Form 10BD only up to 31st May from the end of the financial year.
There is no clarity as to how donors will be able to claim the deduction u/s 80G if an incorrect PAN was given by the donor/ incorrect PAN was reported by the donee as Trusts/NGO(Donee) will not have an option to revise it post 31st May.
Trusts & NGOs are required to report the donations received in-kind. Reasonable/fair measures should be used to ascertain the monetary value of donations in kind as there is no specific rule prescribed for valuation.
Note: As per explanation 5 to section 80G, donors will not be eligible to claim deductions u/s 80G for donations in kind.
Every amount of donation received needs to be reported in Form 10BD. As the threshold limit is not defined, reporting is required for even the small or penny donations.
Every amount of donation received needs to be reported in Form 10BD. Foreign currency donation needs to be converted at the exchange rate on the date of receipt. It is advisable to
Note: Foreign donations should comply with the provisions of Foreign Contribution(Regulation)
Act. A tax identification number should be obtained from the foreign donor.
Trust/NGO should make an effort to get at least one of the identification details of the donor. But in case if that is not possible and feasible then such donations will be considered anonymous donations.
As per section 115BBC of Income Tax Act, 1961 – Any voluntary contribution referred u/s 2(24)(iia) where the donee(Trust/NGO) does not maintain a record of identification details of the person making such contribution.
Anonymous donation needs to be reported in Form 10BD. Note: As per the advisory issued by ICAI, donations received in digital mode should not be reported as anonymous donations.
If Trust/NGO has not received any donation or grant in the financial year then it will not be mandatory to file Form 10BD for that financial year. As of now, there is no provision to file Nil Form 10BD.
Donations received in offering box “Hundi” at religious places like temples, gurudwara, churches, mosques, etc. are not required to be reported in Form 10BD. As it is not possible to ascertain the details of donors(devotees) and their respective donations.
Section 15BBC(2) of Income Tax Act,1961 specifically excludes such donations from the purview of anonymous donations.
Updated Form 10BD as amended by Income-tax (Fourteenth Amendment) Rules, 2022 notified vide a CBDT Notification no. 51/2022 dated 9th May 2022
In the case of original Form 10BD – Pre acknowledgment number needs to be left blank, as it will be generated after the form is filed.
In the case of revised Form 10BD – Pre acknowledgment number generated after the filing of the original Form 10BD needs to be mentioned.
For the unique identification number of the donor in the Form 10BD following shall be filed
> If PAN or Aadhaar number is available, then it is mandatory to use one from both.
> If neither PAN nor Aadhar number is available, then one of the following can be used
– Taxpayer Identification Number of the country where the person resides.
– Passport number
– Elector’s photo identity number
– Driving License number
– Ration card number
Type of Identification – ID Code
Permanent Account Number – 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
Generally, the section code will be the same for a donee (Trust/NGO/Institutions).
Donors will be eligible to claim a deduction for the donation needs to be selected from the following drop-down list
a) Section 80G
b) Section 35(1)(iia)
c) Section 35(1)(ii)
d) Section 35(1)(iii)
Unique Registration Number is the number mentioned at the Sr. No. 5 of Form 10AC in the Order for registration or provisional registration or approval or provisional approval.
i.e. Provisional Approval Number/Provisional Acknowledgment Number or Unique Registration Number.
The date of Issuance of URN will be the date of registration/ approval/ provisional registration/ provisional approval (Sr. No. 5 in Form 10AC).
Based on the type of donation received one from the following needs to be selected from the drop-down list
b) Specific grant
Based on the mode of donation received one from the following needs to be selected from the drop-down list
c) Electronic modes including account payee cheque/draft
After filing the statement of donations in Form 10BD, the above-mentioned institutions have to download the certificate in Form 10BE and provide the same to donors.
The last date to issue a certificate to the donor in Form 10BE is 31st May immediately following the end of the financial year in which the donation was received.
Updated Form 10BE as amended by Income-tax (Fourteenth Amendment) Rules, 2022 notified vide a CBDT Notification no. 51/2022 dated 9th May 2022
> It can be downloaded after 24 hours of filing Form 10BD any number of times.
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