Donor Information in online Income tax Form 10BD now Mandatory!

Income tax has made filing of Statement of Donations received during the previous financial year (in Form 10BD) mandatory. New Rule 18AB of Income Tax Rules is applicable to all entities that have approval u/s 80G and u/s 35(1) of the Income Tax Act, 1961 which allows tax deductions for donors.

Due Date

The statement of donations for Financial Year 2021-22 is required to be filed by 31st May 2022.

Required Details

  1. Donor’s Name
  2. Donor’s ID and ID Proof (PAN / Aadhar / Passport / Driving License);
  3. Date of issue of the above ID by the competent authority;
  4. Address of the Donor (Donor includes: Individual Indian, NRI, OCI, Foreigner, Company, Partnership Firms, LLPs etc.);
  5. Donation Type (E.g., Corpus, Specific/Restricted Grant etc.);
  6. Mode of Receipt (Cash, cheque, Electronic, etc.);
  7. Amount (In INR).

It is suggested that organisations should maintain a donor register to capture these details all through the year to facilitate ease of filing this form year after year.

How to file

We suggest that this process be handled by an experienced professional accountant in your organization or by your Chartered Accountant / Auditor.

  1. Access the Income Tax Portal using your organisation’s Income Tax Login ID and Password which you use for filing your Income tax returns;
  2. Form 10BD is now available Online under tab “E-File”;
  3. Under E-file, click on “Income Tax Forms” and search for Form 10BD;
  4. The format in which details have to be filled will be downloaded from a link provided in the Form itself using “Download Template” in Part B of the form;
  5. The template mentioned hereabove is in excel format;
  6. Donor details need to be filled as mentioned in the “Requirement” section above;
  7. The excel file should be saved and converted to .csv file online through an external portal;
  8. The converted file needs to be downloaded and then uploaded again in the link provided in the Form 10BD;
  9. In case of any errors in the form, the errors will be indicated in Part B online Form;
  10. The Preview of the form can be viewed and verified online. Once this is done, the submission is complete.

E-verification of Form 10BD is mandatory either through DSC or EVC-4.

Please ensure that details of Principal officer or Authorised Signatory is up to date in the ‘My Profile’ before Submission of the form. Also, please ensure that DSC of the principal officer or authorized signatory is registered before submission of the form.

Certificate of Donation (for Donor) in Form 10BE

After filing of Statement of Donations in Form 10BD, please download and issue Certificate of Donations in Form 10BE which contains details of the NGO like PAN and Name of the NGO, approval numbers u/s 80G & 35(1) along with details of the donations and donor.

Penalty (for non-compliance)

Every organization 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/- and which may extend up to Rs.1,00,000/-.

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