Form 10BD

What is Form 10BD?

Form 10BD is a mandatory statement that must be furnished by a trust, institution, or NGO approved under Section 80G of the Income-tax Act, 1961. As per Rule 18AB of the Income-tax Rules, 1962, any entity receiving donations that qualify for deduction under Section 80G must report these details in Form 10BD to the Income-tax authority.

Upon filing Form 10BD, the organization must issue Form 10BE to donors, which serves as proof for claiming deductions under Section 80G.
 

What is The Process to File Form 10BD?

The reporting entity (trust, institution, or NGO) has two options for filing Form 10BD and generating donation certificates for donors:

1. Direct Filing of Form 10BD – The entity can file the form directly and generate system-generated Form 10BE certificates within 24 hours of filing.
2. Generating Pre-Acknowledgement Numbers (Pre-ARNs) – Instead of filing Form 10BD immediately, entities can generate Pre-ARNs for manually issuing Form 10BE certificates.

Pre-Acknowledgement Number (Pre-ARN) for Manual Donation Certificates

• A reporting entity can generate up to 1,000 Pre-ARNs without filing Form 10BD.
• The Pre-ARN is a unique number that must be quoted on manually issued donation certificates at the time of receiving donations.
• All manually issued certificates with Pre-ARNs must be reported while filing Form 10BD.

Once all previously generated Pre-ARNs are consumed by filing Form 10BD, the entity can generate the next batch of 1,000 Pre-ARNs for issuing further donation certificates.

Issuance of Form 10BE (Certificate of Donation)

After successfully filing Form 10BD, the reporting entity must download and issue Form 10BE, which serves as an official certificate of donation. This certificate contains:

• Name and PAN of the institution
• Approval numbers under Section 80G & 35(1)
• Details of the donations and donor

By complying with Form 10BD filing requirements, trusts and NGOs ensure transparency in donation reporting while enabling donors to claim tax deductions under Section 80G.
 

Applicability of Form 10BD

The following entities must file Form 10BD:

Charitable trusts and NGOs registered under Section 12A or 12AB of the Income Tax Act
Institutions approved under Section 80G to provide tax deductions to donors
Research institutions, universities, and hospitals registered under Section 35(1A) for scientific research donations
Religious organizations accepting tax-exempt donations
 

Due Date for Filing Form 10BD

Form 10BD must be filed annually for donations received in a financial year. The due date is May 31st of the following financial year. For example, for donations received in FY 2023-24, Form 10BD must be filed by May 31, 2024.

Information Required in Form 10BD

While filing Form 10BD, organizations need to provide the following details:

Basic Details of the Donee Organization

• Name of the organization
• PAN (Permanent Account Number)
• Address and contact details
• Registration number under Section 80G or 35(1A)

Donor Information

• Name of the donor
• PAN or Aadhaar of the donor
• Address of the donor

Donation Details

• Mode of donation (Cash, Cheque, Digital, In-Kind)
• Amount donated
• Type of donation (Corpus, Specific, General)

Form 10BE Generation

• After submitting Form 10BD, the organization must generate and issue Form 10BE to donors for claiming tax deductions.
   

Step-by-Step Guide to File Form 10BD

Here’s how eligible entities can file Form 10BD online:

Login to the e-Filing Portal

• Visit the Income Tax e-Filing portal: www.incometax.gov.in
• Use the registered credentials of the organization.

Navigate to Form 10BD

• Go to the "e-File" section and select Income Tax Forms
• Choose Form 10BD – Statement of Donations

Fill in Required Details

• Provide organization details (PAN, registration number, address)
• Enter donor information (Name, PAN, Aadhaar)
• Fill in donation details (amount, mode, purpose)

Verify & Submit

• Check all details for accuracy
• Use Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) for submission

Download Form 10BE

• After successful submission, generate and issue Form 10BE to donors
   

Penalty for Non-Compliance

Failure to file Form 10BD on time or incorrect reporting can attract penalties under Section 271K of the Income Tax Act:
Penalty of Rs. 10,000 to Rs. 1,00,000 for non-filing
Donors may lose their tax deduction benefits if Form 10BE is not issued
The organization may face scrutiny or audits by the Income Tax Department
 

Benefits of Filing Form 10BD

Filing Form 10BD offers multiple benefits to charitable organizations and donors:

For Organizations:
✔ Ensures compliance with tax regulations
✔ Enhances transparency in donation reporting
✔ Maintains eligibility for 80G and 35(1A) approvals
✔ Helps build credibility among donors

For Donors:
✔ Provides legal proof (Form 10BE) to claim tax deductions
✔ Helps in tax planning and savings
✔ Reduces chances of scrutiny from the tax department

Conclusion

Form 10BD is a crucial compliance requirement for charitable organizations, NGOs, and institutions receiving tax-deductible donations. Filing it on time ensures smooth tax benefits for donors while maintaining transparency in financial reporting. Organizations must adhere to the filing deadlines, verify donor details carefully, and generate Form 10BE to provide tax exemption certificates to donors. Understanding and complying with Form 10BD regulations can help organizations build credibility and maintain their tax-exempt status effectively.