The government of India has allowed the taxpayers to claim the deduction of donations made by them during the financial year. But there is hardly a mechanism to check the legitimacy of such donations. Therefore, to bring more transparency the CBDT had released a notification dated 26th March 2021 last year, in which it notified the provision related to Form 10BD and Form 10BE. Today, in this article we are going to discuss all about Form 10BD and Form 10BE.
So, without further ado. Let’s get started.
First, let’s understand what is Form 10BD and Form 10BE?
Form 10BD – “A Statement of Donation”
● It is a statement of particulars containing all the requisite information about donations received by any research association, university, college, or other institution or company or fund during the financial year.
● The CBDT had made it mandatory for such research associations, universities, colleges, or other institutions or companies, or funds to file Form 10BD under section 80(G)(5)(viii) and section 35(1A)(i) of the Income Tax Act, with effect from the financial year 2021-2022.
Form 10BE – “A Certificate of Donation”
● After filing the Form 10BD, reporting person i.e., any research association, university, college, or other institution or company or fund is mandatorily required to download and issue Form 10BE to the donor, which shall be treated as a certificate of donation under section 80(G)(5)(xi) and section 35(1A)(iii) of the Income Tax Act.
What is the procedure to file Form 10BD and issue Form 10BE?
Procedure to file Form 10BD
The statement of donation i.e, Form 10BD is required to be filed electronically by any research association, university, college, or other institution or company or fund receiving donations during the financial year. The form must be verified by the person who is authorized to verify the return of income and must contain a digital signature or it can be filed through Electronic Verification Code (EVC).
Procedure to issue Form 10BE
The certificate of donation i.e, Form 10BE needs to be downloaded from the portal (after filing the aforesaid Form 10BD) and issued to the donor who has made the donations in the financial year. In case there is any mistake or error in Form 10BE, the reporting person can rectify it by filing the corrected Form 10BD again.
What details are mentioned in Form 10BD and Form 10BE?
Details mentioned in Form 10BD
Any research association, university, college, other institution or company, or fund receiving donations need to collect and mention the following details in Form 10BD:-
➢ Details related to the reporting person reporting the donations such as PAN, reporting period.
➢ Details related to the donors such as name, address, PAN, aadhar number, and any tax identification number.
➢ Details related to the donation such as nature of the donation, mode of receipt, amount donated, and the section under which the donation is made.
Details mentioned in Form 10BE
The Form 10BE shall contain the following requisite information:-
➢ Name of the reporting person,
➢ Permanent Account Number (PAN) of such reporting person,
➢ Address of reporting person,
➢ Approval granting number issued under sections 80G and 35(1) to such reporting person,
➢ Details of the donations and the donor such as the amount of donation, name & address of the donor, type of donation, etc.
What is the time limit to file Form 10BD and issue Form 10BE?
Time limit to file Form 10BD
The statement of donation i.e, Form 10BD shall be furnished by the reporting person once a year on or before the 31st of May, immediately following the financial year in which the donation is received. Therefore, if you are a trust who has received donations in the financial year 2021-2022 you need to file the Form 10BD latest by 31st May 2022.
Time limit to issue Form 10BE
The certificate of donation i.e, Form 10BE is required to be issued to the donor on or before the 31st of May, immediately following the financial year in which the donation is received. So, for the financial year 2021-2022 the due date to issue Form 10BE to your donors is 31st May 2022.
Are there any consequences of non-filing or late filing of Form 10BD?
Yes, there are severe consequences. In case any research association, university, college, or other institution or company or fund receiving donations, fails to file the Form 10BD before the due date, a late fee of Rupees 200 per day shall be levied on it as per section 234G of the Income Tax Act during the period of delay.
Also, a penalty under section 271K shall be levied amounting to Rupees 10,000 which may be extended to Rupees 1,00,000 by the authorities.
Please note – It is important for a donor to obtain Form 10BE i.e, a certificate of donation as well from the reporting person in order to claim his deduction for donation made while filing a return of Income. A mere donation receipt will not suffice now as proof of donation.
We hope all your doubts related to Form 10BD and Form 10BE have cleared now. In case you have any queries or need assistance with tax compliances then feel free to reach out to us. Our team of experts will help you 🙂 .
