Due date for filing Form 10BD for entities having approval u/s 80G is 31st May, 2022

Finance Act 2021 introduced an amendment in section 80G of the IT Act and inserted a new provision in the section under which every trust (approved u/s 80G) is required to furnish the statement of particulars of donation in respect of each financial year beginning from F.Y. 2021-22. The CBDT through notification no. 19/2021 dt 26th March, 2021, has notified Form 10BD and Form 10BE to facilitate more transparency and accuracy on the reconciliation of deductions claimed by the assessee and donation received by the Charitable Organizations. Form 10BD is also required to be furnished by research institutions, colleges, universities or other institutions under clause (i) to section 35(1A) of the IT Act.

 

Under this, the trust receiving donation shall file a statement of donation in Form 10BD every year to the Income Tax Department and also issue a certificate of donation to the donor in Form 10BE.

 

Filing Form 10BD:

Form 10BD is to be filed electronically through the e-portal of Income Tax Department. The form should be signed through digital signature of the person authorised to sign the ITR of the trust. Form 10BD could be verified through EVC also.

 

Due Date:

The Form 10BD relevant to a financial year has to be filed on or before 31^st May of the subsequent financial year. Hence for the FY 2021-22, the form has to be submitted on or before 31^st May, 2022.

 

Details required:

1. Name of donor.
2. Contact address of donor.
3. Nature of donation- corpus/ specific grant/ others
4. Mode of receipt- cash/ kind/ Electronic modes including account payee cheque/draft/ others
5. Amount of donation
6. PAN No. /Aadhar No./ Tax Identification No. of the donor (in case of Foreign donor)
7. Section under which donation was received

 

Form 10BE:

Once the Form 10BD is filed by the recipient charitable organization, they are then required to download and issue Certificate of Donation in Form 10BE. Due date for issuing this certificate to the donors is also 31^st May of the subsequent financial year and it shall contain the following information:

• Name of the Charitable Organization,
• PAN,
• Address,
• Approval number u/s 80G and 35(1) along with the details of the donations and the donor.

 

Consequence for non-filing Form 10BD:

The reporting entity is mandated to comply with the filing of Form 10BD and failure to comply will attract a fee of Rs. 200/- per day of delay as per new inserted section 234G. Apart from the fee for delay in furnishing statement of donation in Form 10BD, failure to file such statement will also attract penalty u/s 271K, which shall not be less than Rs. 10,000/- but may extend up to Rs.1,00,000/-.

 

Therefore, with the introduction of Form 10BD, it is now crucial for the donor to not only obtain a donation receipt but also Certificate of Donation in Form 10BE in order to claim deduction u/s 80G.