Section 234G – Late fees for default in the furnishing of statement in Form No. 10BD/ default in the issuance of a certificate in Form No. 10BE

The research association, college, university or other institution or fund or company referred under section 35(1A) or section 80G(5) are required to furnish specified statement and issue specified certificates to the donors. In case of default in furnishing/ issuance of such statement/ certificate, late fees will be payable under section 234G.

The current article covers the late fees provisions of said section 234G of the Income Tax Act.

Defaults for which late fee is payable under section 234G

Section 234G lays down late fees for the following defaults-

  • Default is the issuance of statement and certificate as referred under provisions of section 35(1A) of the Income Tax Act; or
  • Default is the issuance of statement and certificate as referred under provisions of section 80G(5) of the Income Tax Act

Details of statement/ certificates referred under section 234G

For understanding the late fee provisions, it is important to go through the details of the statement and certificate as referred under section 234G of the Income Tax Act. The same is tabulated hereunder-

Statement/ certificate Relevant section Particulars
Statement Section 35(1A) clause (i) Statement in Form No. 10BD is to be filed by the reporting person within 31st May immediately following the Financial Year in which the donation is received. Please refer to rule 18AB of the Income Tax Rules for more details about the statement.
Certificate Section 35(1A) clause (ii) Certificate of donation in Form No. 10BE is to be furnished to the donor within 31st May immediately following the Financial Year in which the donation is received.
Statement Section 80G(5) clause (viii) Statement in Form No. 10BD is to be filed by the reporting person within 31st May immediately following the Financial Year in which the donation is received. Please refer to rule 18AB of the Income Tax Rules for more details about the statement.
Certificate Section 80G(5) clause (ix) Certificate of donation in Form No. 10BE is to be furnished to the donor within 31st May immediately following the Financial Year in which the donation is received.

Amount of late fees payable under section 234G of the Income Tax Act

Provisions of section 234G lays down late fees of an amount of INR 200 per day in case of default in furnishing the above referred statements/ certificates. Notably, such a late fee is payable till the failure continues.

However, as per section 234G(2), the amount of late fees payable cannot exceed the amount of donation for which the default occurs.

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