What Is Form 10BD Income Tax Act: Due Date, Applicability & How To File Online?

Introduction

What is Form 10BD?

Earlier, the exact number of donations made to a charitable institution could not be known, and thus, there was no standard way of verifying the recorded figure. Form 10BD was introduced through a CBDT notification to ensure that the donors correctly record and easily claim every donation.

Form 10BD of the Income Tax Act is a statement of donations received by charitable organizations or institutions eligible to offer tax deductions under Section 80G of the Income Tax Act. Organizations must file it annually to report donor details and the amount of donations received.

Importance of Form 10BD Under the Income Tax Act

• Ensures transparency in charitable contributions.
• Helps the Income Tax Department verify donor claims for deductions under Section 80G.
• Enables organizations to issue Form 10BE of the Income Tax Act, a certificate donors can use to claim tax deductions.

Who Needs to File Form 10BD?

Eligibility Criteria for Filing Form 10BD

Organizations and institutions registered under:

• Section 80G: Entities receiving charitable contributions are eligible for tax deductions under this section.
• Section 35: Institutions involved in scientific research or rural development that receive funds for these purposes.
• Section 10(23C): Specified funds, trusts, and educational institutions recognized under the Income Tax Act.

The funds received by the institutions should be aligned with the following sections:

• Section 35 (1A) (i): Deductions for donations to approved scientific research institutions, exclusively for scientific research.
• Section 80G (5) (viii): Tax deductions for donations to charitable institutions for education, poverty relief, or medical aid.

Entities Required to Furnish Form 10BD

• Non-profit organizations.
• NGOs receiving tax-deductible donations.
• Trusts and institutions covered under Section 80G of the Income Tax Act.
• Research institutions and universities receiving funds for scientific research under Section 35.

Purpose of Form 10BD

Tracking Donations and Issuing Certificates to Donors

Form 10BD enables charitable institutions to report donations received and issue certificates to donors, ensuring accurate record-keeping and facilitating tax deductions under Section 80G. It provides a systematic way to reconcile donations with claimed deductions, similar to the method for TDS in India through the TDS Reconciliation System (TRACES) that prevents discrepancies in tax on mutual funds. The form also enables the organization to issue Form 10BE, which helps donors claim tax deductions.

Ensuring Transparency in Charitable Contributions

Form 10BD promotes transparency by requiring registered NGOs and charitable institutions to file a comprehensive statement of donations. Introduced by the CBDT in 2021, this mechanism helps verify donor claims and prevents misuse of tax-exempt funds, reinforcing accountability in the tax system.

Details Required in Form 10BD

Donor Information (Name, PAN/Aadhaar, Address)

• Donor ID: A unique identifier such as PAN, Aadhaar, Passport, or Driving License. 
• Donor Name: The donor’s name as it appears on the provided ID. 
• Donor Address: The complete residential or registered address of the donor.

Additionally, Form 10BD also requires the statement number and receipt number, which are unique identifiers for tracking donation reports and verifying donor transactions. 

Donation Details (Amount, Mode of Payment, Purpose)

• Donation Amount: The exact amount donated during the financial year, matching the receipts issued to the donor.
• Mode of Payment: Specifies how the donation was received: cash, cheque/draft, in kind, or other electronic methods. Donations above ₹2,000 in cash are not eligible for tax deductions, aligning with the exemption vs deduction rules.
• Donation Type: Categorized as specific, corpus, restricted grant, or other to prevent misallocation.
• Section Code: Identifies the applicable section under the Income Tax Act:
  1. Section 35(1)(iii): Donations to scientific research institutions.
  2. Section 35(1)(ii): Donations to research-focused universities.
  3. Section 35(1)(iia): Donations to research associations in social sciences or statistics.

Step-by-Step Guide to Filing Form 10BD

Filing Timeline and Due Dates

The due date for filing Form 10BD for the financial year 2024-25 is 31st May 2025. Eligible trusts, institutions, and organizations must submit the donation statement within this timeframe to avoid penalties.

Online Filing Procedure Through Income Tax Portal

1. Log in to the Income Tax Portal at https://www.incometax.gov.in/iec/foportal/ using valid credentials.
2. Look for the “e-file” tab, select “Income Tax Forms,” and proceed to Form 10BD.
3. Choose the relevant financial year and click “Continue” to proceed.
4. Enter the required information across the three sections – Basic Information, Donation and Donor Details, and Verification.
5. Download the Excel template, fill in the mandatory fields, and upload the CSV file to the portal.
6. Review all details, click “Proceed to verify,” and confirm the submission.
7. After successful submission, download the acknowledgement and the filed Form 10BD.
8. To download the filed Form 10BD, go to the e-file tab > Income Tax Forms > View Filed Forms, select “Statement of Particulars to be filed”, click “View All,” and then “Download Form.”
9. After filing Form 10BD, download Form 10BE and provide it to the donors

Form 10BE: Certificate of Donation

What is Form 10BE?

Form 10BE is the certificate issued to donors after filing Form 10BD, allowing them to claim deductions under Section 80G of the Income Tax Act. It serves as proof of donation and must be provided to the donor by 31st May of the relevant financial year.

Issuing Form 10BE After Filing 10BD

Once Form 10BD is filed, the organization can generate Form 10BE through the income tax portal. The certificate specifies donor details, donation amount, and a unique acknowledgment number.

Donors can download the certificate 24 hours after filing Form 10BD. To download, donors need to:

• Log in to the e-Filing portal.
• Go to the Dashboard, click e-File > View Filed Forms, and select Download 10BE PDFs.
• Once downloaded, review the PDF and issue it to donors as the official Certificate of Donation.

Consequences of Non-Filing or Incorrect Filing

Penalties for Delay or Errors

Non-filing or delayed filing of Form 10BD incurs a penalty of ₹200 per day, which is capped at the total donation amount for which the filing was delayed. Additionally, under Section 271K, further penalties ranging from ₹10,000 to ₹1,00,000 may be imposed for failure to file or inaccurate filing of Form 10BD.

Impact on Donors’ 80G Claims

If the organization fails to file Form 10BD, donors may have difficulty claiming deductions under Section 80G. Accurate filing ensures that donors receive Form 10BE, which serves as valid proof for their tax deduction claims.

Common Mistakes to Avoid While Filing Form 10BD

Incorrect Donor PAN Details

Ensure the donor’s PAN is entered accurately to prevent mismatches during verification. If incorrect details are submitted, revise the form by filing a corrected Form 10BD before the due date.

Missing Information or Incorrect Donation Amounts

Verify donation amounts and payment modes to avoid discrepancies in the submitted form. If errors are detected after submission, the Income Tax Portal allows for corrections by filing a revised Form 10BD within the specified timeframe.

Recent Updates Related to Form 10BD

Changes Introduced by CBDT Notifications

• Digital Verification Measures: The filing of Form 10BD now requires electronic verification through Digital Signature Certificate (DSC) or Electronic Verification Code (EVC), ensuring the authenticity of the reported information.
• Introduction of Pre-Acknowledgement Numbers (Pre-ARNs): Entities can generate up to 1,000 Pre-ARNs for manually issued donation certificates (Form 10BE) before filing Form 10BD. These Pre-ARNs must be quoted on the certificates and reported in Form 10BD.
• Stricter Penalties: Recent CBDT notifications have emphasized stricter penalties for incorrect filing and have updated the format of Form 10BD and Form 10BE to include additional donor details.

Conclusion

Accurate filing of Form 10BD under the Income Tax Act is crucial for charitable organizations to maintain compliance, ensure donor transparency, and facilitate tax deduction claims under Section 80G. Just as in stock market advisory, where precise reporting and documentation are vital for informed decision-making, timely submission of Form 10BD helps organizations avoid penalties and effectively support donors in their tax-saving efforts.

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