As we are aware,
section 80G of the Income Tax Act,1961 provides for deduction on payment of
donations. Until the last financial year there was no way to counter check the
accuracy of the donations paid. The Income Tax department allowed deduction
based on the claim made by the assessee or at most based on the copy of the
donation receipt presented by the assessee.
However, the CBDT
through notification no. 19/2021 dt 26th March, 2021, has notified Form 10BD
and Form 10BE to facilitate more transparency and accuracy on the
reconciliation of deductions claimed by the assessee and donations received by
the Charitable Organizations.
Form 10BD is a
statement of donations containing the details of donations received by the
Charitable Organizations during the financial year. Procedure and Time Limit
for Filing Form 10BD The form is required to be filed electronically by
donation receiving organizations. The form shall be signed through a digital
signature of a person authorized to sign the return of income. Alternatively,
it can also be filed through Electronic Verification Code (EVC). The form is
required to be filed once in a financial year. The last date for filing the
form for Financial Year 2021-22 is 31st May, 2022.
Every charitable
organization is required to collect requisite details/information from
donors while receiving the donations and maintain the list of the same.
The details/information required for filing the form are as follows:
1. Name of the Donor
2. PAN/Aadhaar number/
Tax Identification Number of the Donor
3. Address of the
Donor
4. Nature of Donation
5. Mode of Receipt
6. Amount of Donation
7. Section code under
which the donation is received
Post filing of
Statement of Donations in Form 10BD, the charitable organization is required to
download and issue Certificate of Donation in Form 10BE. The certificate shall
contain details of Charitable organization like Name of the organization, PAN,
Address, approval numbers u/s 80G & 35(1) along with details of donations
and donor. For the financial year, 2021-22 Form 10BE is to be issued by 31st
May 2022.
In case of any
inadvertent errors or mistakes in Form 10BE, then there are provisions to
rectify the errors or mistakes by filing a correction form (filing Form 10BD
again with corrections).
The reporting entity is mandated to comply with the filing of Form 10BD and
failure to comply will attract a fee of Rs.200/- per day of delay as per newly
inserted section 234G.
Apart from the fee for
delay in furnishing statement of donations in Form 10BD, failure to file such
statement will also attract penalty u/s 271K, which shall not be less than
Rs.10,000/- but may extend up to Rs.1,00,000/-