Form 10BE of Income Tax Act: Claiming Donation Deductions under 80G

Introduction

What is Form 10BE?

Form 10BE of Income Tax Act is a certificate issued by charitable institutions or NGOs to donors, confirming that a donation was received and qualifies for tax deduction under the Income Tax Act. 

It is necessary when someone wants to claim deductions under Section 80G (old tax regime) or Section 35 (under the old tax regime and conditionally under the new regime).

Why Form 10BE is Important for Donors and NGOs

Donors who want tax relief on their contributions must show proof. That’s where donation Form 10BE comes in; it serves as valid documentation for deductions in your ITR.

Who Needs to Issue Form 10BE?

Eligibility Criteria for Trusts, Societies, and Institutions

Any trust, NGO, society, or Section 8 company that is approved under Section 80G or Section 35 and receives eligible donations must issue Form 10BE of Income Tax to its donors.

Earlier, donors could claim deductions based on the donation receipt alone. However, under the updated rules, institutions are now required to submit Form 10BD, a detailed statement of donations, to the Income Tax Department and issue a donation Form 10BE to the individual donor.

Relation with Section 80G and Section 35 Deduction Claims

To claim tax deductions under Section 80G or Section 35, donors must now obtain Form 10BE income tax from the organisation they’ve contributed to; mere donation receipts are no longer accepted. The deadline to receive this form from the donee organisation is May 31 of the assessment year.

This change was made to improve transparency and also help charitable organisations stay compliant while reinforcing donor trust. It’s a must-have, especially if you’re learning how to file ITR online and looking to report deductions accurately.

Purpose of Filing and Issuing Form 10BE

Certification of Donations Received

Form 10BE income tax is issued to confirm that your organisation received a donation, the donor’s PAN was recorded, and the funds will be used for approved purposes.

Supporting Donors in Claiming Tax Benefits

This form supports donors during tax filing. Whether you’re filing under the old tax regime or the new, Form 10BE ensures the deduction is recognised by the tax department.

Details Contained in Form 10BE

Donor’s Name, PAN, and Donation Amount

Form 10BE of Income Tax Act serves as a donation certificate that helps both donors and tax authorities track contributions clearly. It includes the donor’s full name, Permanent Account Number (PAN), and address. Along with this, it records the total donation amount, type of donation (corpus, specific grants, general), and how the donation was made, whether through bank transfer, cheque, UPI, or cash.

The donation Form 10BE also captures the financial year in which the donation was received and the eligible section under which the donor can claim tax benefits, such as Section 80G(5)(vi) or various clauses under Section 35.

Institution Details and Unique Registration Number (URN)

The certificate includes the charitable institution’s name, PAN, address, and approval number and date under the relevant tax section. It also mentions the Unique Registration Number (URN) of the trust or institution, which confirms that it is validly registered to issue such certificates.

In addition, a Unique Identification Number (UIN) is generated for each donation, which strengthens the traceability of contributions and adds a layer of transparency for tax assessments.

Step-by-Step Process to Generate and Issue Form 10BE

Timeline and Due Date for Issuance

If you’re managing a registered charitable institution or trust, issuing Form 10BE of Income Tax Act is an annual obligation. This certificate must be generated and issued to donors by May 31 of the assessment year following the financial year in which the donation was received.

How to Generate Form 10BE Through the Income Tax Portal

To generate donation Form 10BE, your institution must first submit Form 10BD, which records all donation details. Here’s a simplified process:

• Log in to the Income Tax e-Filing portal using your institution’s credentials.
• Go to the ‘e-File’ tab and click on ‘Income Tax Forms’.
• Select and file Form 10BD by entering –
• Basic information about the organisation
• Donor details and donation amounts
• Verification and declaration
• Save the file in the prescribed CSV format, preview the filled form, and complete e-verification.
• Once Form 10BD is successfully filed, Form 10BE becomes available for download after 24 hours.

This process not only streamlines compliance but also enables better record-keeping for NGOs and religious trusts, helping you work seamlessly with your donors and any associated stock advisory company.

How to Download Form 10BE From Income Tax Site?

Login Process and Navigation Steps

• Go to the Income Tax Department portal and log in using your valid credentials.
• Navigate to the ‘e-File’ section and select ‘Income Tax Forms’ from the drop-down.
• Click on ‘View Filed Forms’ to see the list of forms your organisation has submitted.
• Locate the Form 10BD section and click ‘View All’.

Download and Verification of Form 10BE

• Once you’re on the “View Filed Forms” page:
• You’ll see an option to download Form 10BE PDF for each donation listed under Form 10BD.
• This option will be available 24 hours after filing Form 10BD.
• Always verify the donor name, PAN, donation amount, and unique identification number (UIN) generated for each donation to ensure accuracy.

Form 10BD Filing For Issuance Of Form 10BE

Importance of Filing Form 10BD Before Generating Form 10BE

Before issuing donation Form 10BE, you need to file Form 10BD, which reports donation transactions to the Income Tax Department.

Details Required in Form 10BD Submission

• Donor’s PAN
• Amount donated
• Mode of payment
• Section under which deduction is claimed

Only after this is filed can you issue a Form 10BE income tax certificate to donors.

Difference Between Form 10BD and Form 10BE

Form 10BD: Filing of Donation Details with Tax Department

Form 10BD is filed by charitable trusts and approved institutions to report all donations received in a financial year. It includes the donor’s PAN, donation amount, payment method, and more. Filing this form is mandatory before generating Form 10BE of Income Tax Act, and it supports deduction claims under Section 80G or Section 35.

Unlike processes like TCS vs TDS, which deal with collection or deduction at the source of income, Form 10BD focuses on post-receipt reporting by the institution.

Form 10BE: Issuance of Donation Certificate to Donors

Once Form 10BD is submitted, the institution can issue Form 10BE income tax to donors. This certificate contains the donor’s details, donation amount, financial year, and the institution’s registration info. It is necessary for donors to claim tax benefits, especially under the old tax regime.

To summarise:

• Form 10BD = Trust files donation data with the Income Tax Department
• Form 10BE = Trust gives donation certificate to each donor

No Form 10BD, no Form 10BE, and without Form 10BE, tax deduction claims may be rejected.

Consequences of Non-Issuance of Form 10BE

Impact on Donors’ Tax Deductions

If you don’t issue Form 10BE, donors may not be able to claim tax deductions, which could lead to mistrust or fewer donations next year.

Penalties and Loss of Trust Registration

Non-compliance can lead to scrutiny by tax authorities, possible penalties, and even loss of approval under Section 80G or 35. It may also raise concerns with any financial advisory company working with you.

Recent Updates Related to Form 10BE

CBDT Notifications and Procedural Changes

The Central Board of Direct Taxes (CBDT) has made it mandatory to e-file Form 10BD and Form 10BE through the Income Tax portal. Auto-validation of PANs and digital signature integration have also been added. For donors, these updates make it easier to verify donations while filing under tcs vs tds heads.

Best Practices for Issuing Form 10BE

Accurate Recording of Donations

Ensure that every donation is recorded correctly with complete donor details—name, PAN, address, amount, and mode of payment. This helps prevent discrepancies while filing Form 10BD and avoids errors in donation Form 10BE.

Timely Issuance and Proper Compliance

Institutions must issue Form 10BE of Income Tax to donors by May 31 of the following financial year. Delays can impact the donor’s ability to claim deductions under Section 80G or Section 35, especially if they’re filing under the old tax regime. Staying compliant not only builds trust but also ensures smooth donor communication and audit-readiness.

Conclusion

Form 10BE of Income Tax plays a vital role in maintaining transparency and encouraging more people to donate. When issued properly and on time, it helps both the institution and the donor meet compliance requirements and avail of tax benefits.

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FAQs

Is Form 10BE mandatory for all donations?

Yes, if your institution is registered under Section 80G or 35 and receives eligible donations, you must issue Form 10BE.

What happens if the donor does not get Form 10BE?

They may not be able to claim deductions for that donation in their ITR.

Can Form 10BE be corrected after issuance?

If any detail is wrong, you can file a correction through the portal, but it’s better to double-check before submission.

When should Form 10BE be issued?

It must be issued on or before May 31 of the assessment year following the year in which donations were received.