Statement of Donation – Form 10BD

Introduction:

Donations are an essential part of charity work, and individuals and organizations contribute towards various causes for the betterment of society. The Income Tax Act, 1961, provides for tax benefits to individuals and companies for donations made to certain funds or institutions under Section 80G of the act. The donee, i.e., the trust, NGO or institution receiving such donations are required to furnish a donation return in Form 10BD to the Income Tax Department, providing the details of such donations. In this article, we will discuss the importance of Form 10BD, the information required in it, and the procedure for filing it.

What is Form 10BD?

Form 10BD is a statement required to be furnished by the donee, i.e., the trust, NGO or institution that receives donations under Section 80G of the Income Tax Act, 1961. The purpose of this form is to provide details of the donations received during the financial year and to ensure that the donations received are genuine and eligible for tax benefits.

Importance of Form 10BD

Form 10BD is an essential document for the donee who receive donations from individuals and companies. It is a mandatory requirement under Section 80G of the Income Tax Act, 1961. The donee failure to furnish this form may lead to the denial of tax benefits to the donors. Moreover, it is necessary to maintain transparency in the functioning of the trust, NGO or institution and to prevent any malpractices.

Information required in Form 10BD

Form 10BD requires the donee to provide the following information:

Name and address of the donor: The donee needs to provide the name and address of the donor who made the donation.

PAN of the donor: PAN of the donor is required to be mentioned in the form. This is to ensure that the donation is made by a genuine and registered entity.

Amount of donation: The donee needs to mention the amount of donation received during the financial year.

Date of donation: The donee needs to mention the date on which the donation was received.

Mode of donation: The donee needs to mention the mode of donation, whether it was received through cash, cheque or online transfer.

Receipt number: The donee needs to mention the receipt number of the donation received. This is to ensure that the donation received is genuine and can be verified.

Procedure for filing Form 10BD:

The donee can file Form 10BD online or offline. Here are the steps to file Form 10BD:

Online filing of Form 10BD:

Visit the Income Tax e-filing website.

Login to your account using your PAN and password.

Go to the ‘e-file’ tab and select ‘Income Tax Forms.’

Select ‘Form 10BD’ from the drop-down menu and click on ‘Submit.’

Fill in all the required details in the form and click on ‘Submit.’

After submitting the form, a confirmation message will be displayed on the screen. Save a copy of the confirmation message for future reference.

Due Date to file Statement of Donation in Form 10BD

The Statement of Donation in Form 10BD is required to be furnished on or before the 31st May of the financial year immediately following the financial year in which the donation was received.

As per Section 80G(5B) of the Income Tax Act, trusts, institutions, and organizations registered under Section 12A or Section 12AA, Section 10(23C), or Section 35AC, respectively, are required to furnish the Statement of Donation in Form 10BD to the donor on or before the 31st May of the financial year immediately following the financial year in which the donation was received.

Therefore, it is important for trusts, institutions, and organizations to ensure that they furnish Form 10BD to the donor within the specified time period. Failing to furnish the form within the due date may lead to the denial of deduction claimed by the donor.

Late Fees for late filing of Statement of Donation in Form 10BD 

As per Section 234G of the Income Tax Act, a late fee of Rs. 200 per day for each day of default will be levied if Form 10BD is filed after the due date. The late fee will be applicable from the date immediately following the due date until the date on which the form is filed.

Therefore, it is important for trusts, institutions, and organizations to file Form 10BD within the specified due date to avoid incurring any late fees. If the form is not filed within the due date, the late fees will be levied automatically, and the amount will increase with each passing day of default.

However, the amount of late fees shall not exceed the amount of donation reported in Form 10BD.

Original or revised Form 10BD?

As per the Income Tax Act, entities receiving donations are required to furnish Form 10BD to the donor for each donation received during a financial year. However, in case an error is detected in the original Form 10BD furnished to the donor, the entity can furnish a revised Form 10BD to rectify the error.

The Central Board of Direct Taxes (CBDT) has also issued rules that allow the furnishing of multiple original or revised Form 10BD for a particular financial year. This is particularly useful in cases where a donor requests a duplicate copy of the Form 10BD or in cases where the original form contained errors that need to be rectified.

However, it is important to note that the revised Form 10BD must contain all the correct information related to the donation, including the correct date and amount of the donation. If there are any discrepancies in the revised Form 10BD, it may lead to penalties and other consequences for the entity. Therefore, it is important to ensure that all the information furnished in the revised Form 10BD is accurate and up-to-date.

Types of Donation Report in Form 10BD

As per the Income Tax Act, all donations received by an organization, whether domestic or foreign, must be reported in Form 10BD.

Form 10BD is a statement of donations received by an entity registered under Section 12A, 12AA, 10(23C), or 35AC of the Income Tax Act. This form must be furnished to the donor for each donation received during a financial year.

This means that any donation received by an organization, whether from domestic or foreign sources, must be reported in Form 10BD. This includes donations received under the Foreign Contribution (Regulation) Act, 2010 (FCRA).

It is important for organizations to maintain proper records of all donations received, including details such as the name and address of the donor, the date of receipt, and the amount of the donation. This will help ensure accurate reporting in Form 10BD and prevent any errors or discrepancies.

Organizations receiving foreign contributions under FCRA must also maintain separate records for foreign contributions received and utilize the same for filing Form FC-4, in addition to the Form 10BD for domestic contributions.

Limit of Donation Amount Report in Form 10BD

The full amount of donation received in cash shall be reported in Form 10BD, and it shall not be limited to Rs. 2,000.

Earlier, there was a provision that allowed a threshold limit of Rs. 2,000 for reporting cash donations received by charitable organizations. However, with the amendment in the Finance Act, 2020, this threshold limit has been removed, and now all donations, irrespective of the mode of payment, must be reported in Form 10BD.

This means that any donation, whether received in cash or through digital modes of payment, must be reported in Form 10BD, and there is no limit on the amount of cash donations that can be reported.

Therefore, it is important for organizations to maintain proper records of all donations received, irrespective of the mode of payment, to ensure accurate reporting in Form 10BD. This will also help prevent any errors or discrepancies in reporting the donations received.

In Form 10BD, the amount of donation in cash received from Donor should be reported at full amount although he will be entitled to a deduction under section 80G for Rs. 2,000 only.

List of Other Donation Report in Form 10BD

Form 10BD is a statement of donations received by an entity registered under Section 12A, 12AA, 10(23C), or 35AC of the Income Tax Act. The form must be furnished to the donor for each donation received during a financial year. Here is a list of donations that need to be reported in Form 10BD:

All monetary donations received in cash or through digital modes of payment, including cheques, demand drafts, bank transfers, etc.

Donations received in kind, such as food, clothing, or any other item of value that can be used by the entity for charitable purposes.

Donations received from individuals, organizations, or any other sources, whether domestic or foreign.

Donations received under the Foreign Contribution (Regulation) Act, 2010 (FCRA).

Donations received for a specific project or purpose, as well as general donations that can be used for any charitable purpose.

Donations received for a specified period or on a recurring basis, such as monthly or quarterly donations.

Donations received for disaster relief or any other emergency relief work.

Donations received for medical aid, education, or any other charitable purposes.

It is important for organizations to maintain proper records of all donations received, including details such as the name and address of the donor, the date of receipt, and the amount of the donation. This will help ensure accurate reporting in Form 10BD and prevent any errors or discrepancies.

Conclusion:

Form 10BD is an important document for Trust/NGO/Institution that receives donations from taxpayers. It is mandatory for them to furnish this form to the donor in order for the donor to claim a deduction under section 80G of the Income Tax Act. Failing to furnish this form may lead to the denial of deduction claimed by the donor. Therefore, it is important for Trust/NGO/Institution to maintain proper records and furnish Form 10BD.

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CA (Dr) Piyush Kapoor – Mob: 9993844411 – EMail: [email protected]

Disclaimer : These are author’s personal views  and cannot be construed to be the views of the ICAI. It shall not be used for any legal advice/opinion and shall not be used to render any professional opinion/advice. The information contained in the article is for the purpose of spreading information / knowledge/ awareness and shall not be treated as solicitation in any manner or for any other purpose.