Income Tax Query 10 : What is Form 10BD of Income Tax act and its applicability?

🔹Key Points About Form 10BD

Purpose:
It serves as an annual statement of donations, containing details such as:

1. Donor’s particulars (Name, PAN/Aadhaar, Address).
2. Donation details (Amount, Mode of Donation).

Applicability:

1. Mandatory for entities registered under Section 80G or Section 35.
2. Applicable starting FY 2021-22 (Assessment Year 2022-23).

Filing Requirements:

• Due Date: Must be filed electronically by 31st May following the financial year.
  • (For FY 2022-23, the deadline was extended to 30th June 2023).
• Fees: Delay in Filing Form 10BD incurs a Fees of ₹200 per day u/s 234G of the Income Tax Act, 1961.
• Penalty: Failure to file Form 10BD may attract penalty u/s 271K of the Income Tax Act, 1961, which shall not be less than Rs.10,000/- and which may extend up to Rs.1,00,000/-.
• Not Required to be Filed, if no donation is received during the financial year. (Reference: FAQs on Form 10BD-BE on Income Tax efiling portal)

Filing Process:

• File Form 10BD on the Income Tax Department’s e-filing portal.
• Post-filing, download and issue Form 10BE (Certificate of Donations) to donors.
• Verification via Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
• Download the Certificate of Donations (Form 10BE):
  • Contains information about the donee (name, approval numbers, and dates), donation amount, and donor details.
  • Helps donors claim deductions under Section 80G or 35.

Importance of Compliance

Filing Form 10BD ensures:

• Ease of claiming tax benefits for donors.
• Avoidance of financial costs such as fees and penalties to NGOs.

Practical Consideration:
Collect donor details at the time of receiving donations to avoid last-minute challenges during filing.

We have developed an AddOn in TallyPrime to Streamline Financial & Ease Statutory Compliance for NGOs such as Section 8 Companies, Charitable Trusts, and Societies. A Walkthrough video / Demo of the TDL is available at https://www.youtube.com/watch?v=7WnfcbRgQ3k

Resources (Links to Income Tax Department, websites)

• Form 10BD-10BE User Manual by Income Tax Department : https://www.incometax.gov.in/iec/foportal/help/statutory-forms/popular-form/form10bd-10be
• Form 10 BD – FAQs by Income Tax Department https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form10bd-10be-faq
• Form 10BD – https://incometaxindia.gov.in/Forms/Income-Tax%20Rules/103520000000080975.pdf
• Form 10BE – https://incometaxindia.gov.in/Forms/Income-Tax%20Rules/103520000000080976.pdf
• Submit Form 10BD & Form 10BE Demo Video by Income Tax Department – https://www.youtube.com/watch?v=vLeO9EvEieU