12/05/2023
Form 10BD – Statement of Donation
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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What is Form 10BD?
Form 10BD is a statement of donations received to be filed mandatorily as per section80G(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.
Who has to file Form 10BD?
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.
nstitutions 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.
What is the due date for filing the statement in Form 10BD?
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.
What are the consequences of not filing Form 10BD?
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/-.
Can you rectify Form 10BD?
YES
As this will be a crucial record for the donors in order to claim a 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.
How many times Form 10BD can be filed?
There is no restriction on filing Form 10BD. It can be filed as many times as it is required.
Is it mandatory to file Form 10BD by an institution that has got provisional approval u/s 80G?
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.
Can a revised Form 10BD be filed?
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 gives multiple donations then how should you report it?
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.
If by mistake incorrect details of the PAN of the donor were given to Donee/ were incorrectly reported by the donee?
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 the option to revise it post 31st May.
How to report donations received in kind?
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.
How to report small or penny donations?
Every amount of donation received needs to be reported in Form 10BD. As the threshold limit is not defined, reporting is required for even small or penny donations.
How to report donations received in foreign currency?
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.
What should be done when none of the identification details of the donor are available?
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.
How to report 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.
Is it mandatory to file Form 10BD, if no donations or grants were received during a financial year?
NO.
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.
Are donations received in offering boxes at religious places to be reported in Form 10BD?
NO.
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 the Income Tax Act,1961 specifically excludes such donations from the purview of anonymous donations.
