Everything About Form 10BD of Income Tax Act, 1961

Before there were no proper means to verify the donation received by the entities like colleges, schools, or universities. Because of that some taxpayers used to claim false donation under section 80G of income tax act. In order to minimize these types of claims, the income tax department made mandatory to file a donation statement in form 10BD by these entities. In the article, we will discuss about form 10BD of Income tax act and what it entails.

Everything About Form 10BD of Income Tax Act, 1961

Table of Contents

What is Form 10BD of Income Tax Act?

Trusts, institutions, or NGOs that have been approved under section 80G of the Income Tax Act, 1961 should submit Form 10BD to the Income Tax authority. Rule 18AB of the Income Tax Rules says that any person eligible for deductions under this section, should submit a donation statement through Form 10BD under Income Tax Act 1961.

Reporting entities such as trusts, institutions, or NGOs can report any donation received in two ways:

  1. Submit form 10BD directly and generate the system generated form 10BE certificates for donors within 24 hours after submitting Form 10BD online.
  2. Generate pre-ARNs to distribute form 10BE certificates manually.

The entity above can generate a maximum of 1000 Pre-ARNs without filling out a Form 10BD. Each Pre-ARN is a different number that should be stated on any individual donation certificates issued to donors whenever they donate. Such details should entered at the time of submission of form 10BD. After using up all previously created Pre-ARNs and including them in Form 10BD, the above entity can be able to generate yet another set of 1000 Pre-ARNs for preparation and issuance of those manual donation certificates.

Once the donation statement is submitted on 10BD, it becomes mandatory for the reporting entity to both download and issue 10BE.The details of these certificates include organization’s PAN, name, 80G and 35(1) approval numbers, as well as donor’s donations information and details.

Form 10BD Applicability

Form 10BD is an income tax form where an entity like a charitable institution including a trust, college, school, research institution or university submit this form for donations they have received. Such organizations are required to apportion their monies as stipulated under section 35(1A)(i) and 80G(5)(viii).

In case donors and recipients are willing to have business with entities qualified to preferential tax treatment or exemptions, they need to fill the 10BD form as stipulated in the Income Tax Act. This also covers government institutions, charitable non-governmental organizations recognized within the framework of law among other eligible institutions. In order to donate money or any other property in kind to such identified organizations the donors have to make use of form 10BD again as well as any other form that may apply. Similarly, upon reception of funding either as donation or grant from such quarters there is need to observe, Form 10BD is mandatory for such cases.

Form 10BD Due Date

May 31 of the following year is the deadline for form 10BD. So, for financial year 2023-24, the deadline is May 31st 2024. All eligible trusts, organizations and institutions are supposed to submit their donations returns via form 10BD before this day for donations received last year.

If the form 10BD is not submitted by an entity within the deadline, additional fees and penalties will be levied. As per section 234AG of Income Tax Act, a fine worth ₹200 will be imposed per day for everyday overdue.

How to file Form 10BD Online?

In order to submit form 10BD digitally, you are required to go to the income tax website. An authorized signatory must certify the income tax return of the reporting entity. Below is a stepwise guide on how you can submit form 10BD:

  1. Just go on the income tax website log in with your username and password.
  2. Go to the option of “e-file” and press upon “Income Tax Forms” to get the form 10BD.
  3. “3. Select the fiscal year that is pertinent and then click on “Continue”
  4. Click on “Provide details”.
  5. Complete the form with correct and required information. There are three sections in this form; basic information, donation details and donors, as well as verification.
  6. The system will auto-fill ‘Basic Information’ then simply click “confirm”.
  7. Fill in the second and third with the necessary information.
  8. Download the template provided in excel and fill in the necessary details then remember to save your work as a CSV file.
  9. A CSV file that has been saved can be uploaded to the portal. The data provided is saved automatically by the web form.
  10. Choose the “Verification” tab in order to check all requested information.
  11. If all the information is accurate, please press on “Proceed to verify”
  12. Confirm by clicking “Yes” to download the counterfoils acknowledgment and submit form. Change Form 10BD whenever there is an error or mistake.
  13. Form 10BA must be submitted after which you proceed to download form 10BE for issuance of a Certificate of Donation thereafter hand it over to the donees. This will enable them make claims for deductions under Section 35 or 80G of the Income Tax Act.

How To Download a Filed Form 10BD?

The following provides guidance on how you can access the filled-out Form 10BD form:

  1. Go to the official website of the Income Tax department and pick “e-file.”
  2. Kindly select “Income Tax Forms” and then “View filed forms” from its dropdown menu.
  3. This triggers a new page on your screen.
  4. Pick “Statement of Particulars to be filed.”
  5. Press “View all.” 6. Lastly, downloading the filed Form 10BD requires that you click “Download form.”

Read also: Everything About Section 10(14)(ii) of Income Tax Act, 1961

Final Words

Form 10BD is an important document that ensures transparency and accountability concerning all charitable donations done in abroad. It serves as a protection against embezzlement or misappropriation of donations through its strict reporting requirements. In order not to be fined or punished, every Trust, College, or NGO must therefore file this form promptly. Thus, giving out Form10BE enables givers to receive cash deductions on their own end and which in turn increases trust while promoting charity work. Not only does following these rules prevent breaking the law but it also boost confidence in both parties.

Frequently Asked Questions (FAQ)

Submission deadline for Form 10BD statement is May 31 of the next fiscal year following the fiscal year in which the donation was received.

After filling a form 10BD, the institutions are required to download a form 10BE certificate and give it to the donors.

Yes, in order to submit the form successfully you need to perform e-verification using DSC, EVC, or OTP on your registered mobile number.

If one fails to file Form 10BD, he will be charged a fine of ₹200 per day late or not submitted before deadline according to section 234G. Plus there is another section 271K that stipulates the penalty between either ₹10,000 minimum and ₹100,000 if such statements were not furnished on time.

Leave a Comment

Top Healthcare Stocks in India – 2024 Benefits of PMFME Loan for Food Business Best Hydrogen Penny Stocks India in 2024