Form 10BD Filing

In an effort to enhance transparency and curb fraudulent donation claims, the government has introduced Form 10BD under the Income Tax Act. This form is mandatory for all charitable institutions, including colleges, schools, universities, and trusts, to report the particulars of donations received. Filing Form 10BD accurately is crucial to ensure compliance and avoid hefty penalties.

IndiaFilings is here to assist you in filing Form 10BD accurately and efficiently. Our expert team ensures that your organization complies with the latest regulations, providing a seamless experience in managing your donation statements. 

Form 10BD of the Income Tax Act

Under Section 80G of the Income Tax Act 1961, donations made to certain trusts are eligible for a deduction. To enhance transparency and prevent false deduction claims, the Finance Act 2021 introduced a requirement for trusts with an 80G certificate to submit a statement of particulars of donations in Form 10BD annually. This statement must be filed within the stipulated time, and failure to do so will result in hefty penalties.

The primary purpose of this provision is to ensure transparency and accuracy in donation claims.

Key Information Required for Filing Form 10BD

When filing Form 10BD, entities must provide the following information:

• Donor ID
• Statement Number
• Donor Identification: PAN, Passport, Aadhaar card, Driving License, or another unique identification number.
• Donors Address
• Section Code: (e.g., Section 35(1)(iii), Section 35(1)(ii), Section 35(1)(iia))
• Donor Name
• Mode of Receipt: Cash, cheque/draft, kind, or others.
• Donation Type: Specific, corpus, restricted grant, or others.
• Donation Amount

Form 10BD Applicability

Every organization that qualifies as a charitable institution, including trusts, colleges, schools, research institutions, universities, etc., must file Form 10BD for income tax purposes. It is important to note that the funds of these organizations must fall under the following sections:

• Section 35 (1A) (i) of the Income Tax Act
• Section 80G (5) (viii) of the Income Tax Act

Filing Form 10BD ensures compliance with tax regulations and helps maintain transparency in receiving and utilising donations.

Form 10BD Due Date

The due date for filing Form 10BD for the financial year 2023-24 is 31st May 2024. This means that all eligible trusts, organizations, and institutions must file their donation return in Form 10BD on or before 31st May of the following financial year in which they received the donation.

Consequences of Late Filing Form 10BD

• Late Filing Fee: Failure to submit the donation return or statement of donation within the stipulated time will result in additional fees and penalties. As per Section 234G of the Income Tax Act, a penalty fee of Rs 200 per day is applicable for any delay.
• Additional Penalties: Furthermore, under Section 271K of the Act, failure to furnish the statement of donation in Form 10BD can attract a minimum penalty of Rs 10,000 and a maximum penalty of Rs 1,00,000.

Procedure to File Form 10BD Online

As per the new rules, Form 10BD must be filed electronically or digitally through the official website of the Income Tax Department. The authorized person needs to sign this Income Tax Return of the reporting entity. After filing Form 10BD, the charitable organization must download and issue a Certificate of Donation through Form 10BE and provide it to the donors. Thereafter, donors can claim a deduction under Section 80G or Section 35 of the Income Tax Act.

Easily File Form 10BD via IndiaFilings

At IndiaFilings, we understand the complexities of filing Form 10BD and are committed to providing a hassle-free experience. Our services include:

• Expert Consultation: Our team of tax experts will guide you through the entire process, ensuring you understand all requirements and deadlines.
• Data Collection and Verification: We assist in gathering and verifying the necessary information, including donor details, donation amounts, and other required particulars.
• Electronic Filing: We handle the electronic submission of Form 10BD through the official Income Tax Department website, ensuring accurate and timely filing.
• Certification of Donation: After filing Form 10BD, we help you download and issue the Certificate of Donation through Form 10BE, which must be provided to your donors.
• Compliance Assurance: Our services ensure that your organization complies with all relevant tax regulations, minimizing the risk of penalties.

Contact IndiaFilings now to streamline your Form 10BD filing process and secure your organizations compliance with the Income Tax Act.