Statement & Certificate of Section 80-G Donation - Form 10BD & Form 10BE

The CBDT (Ministry of Finance, Govt. of India)  has taken steps to prevent  bogus claim made by the assessee u/s 80G of the Act and ongoing fraud by the charitable entities registered u/s 12AB of the Act.
 
At present, there is no system either to check the authenticity of money receipt as issued by the charitable entities nor there is any monitoring or control to verify whether the charitable entity has filed ITR disclosing utilization of donation so received u/s80G of the Act as per law from various donor either in cash /kind /by bank.   
 
Accordingly,  by Notification No. 19/2021 dated 26th March 2021,it has been directed by CBDT that all registered charitable entities to file a statement of donation received in form 10BD with Income Tax Department and simultaneously also issued donation receipt to the donee in form 10BE as per applicable Rules & Regulations. 
 

This compliance has to be done by all charitable entities like trust, society, Section 8 companies or any other entities registered u/s 80G of the Income Tax Act, without any threshold of the donation being received during the year.


          SALIENT FEATURE OF FORM 10BD
 

•  Every registered charitable organization (approved u/s 80G / 35(i)(a)) is required to furnish a statement of particulars of donation in respect of each financial year beginning from FY 2021-22.  Such a statement is known as form 10BD.
   
• Form No. 10BD shall be furnished electronically through Digital signature or through electronic verification code.
   
• Form 10BD shall be filed on annual basis on or before 31st of May immediately following the financial year in which donation is received.Form 10BD for FY 2021-22 needs to be furnished by 31st of May 2022.
   

Non filing of Form 10BD on time will attract late fee of Rs. 200 per day u/s 234G of the Act. In addition to the late fee, a penalty u/s 271K  may also be imposed which shall not be less than Rs. 10,000/- up to maximum Rs. 1,00,000/-.


          SALIENT FEATURE OF FORM 10BE
 

•  A charitable entity that has furnished statement of donation in form 10BD shall also issue a  certificate of donation to the donor. This certificate will be issued in form 10BE.
   
• Form 10BE shall specify complete detail of donation made by the donor and the charitable entity i.e. donee.
   
• The certificate of donation in Form 10BE  is required to be given to the donor on or before   31st May, immediately following the FY in which the donation is received.
   
• Form 10BE for FY 2021-22 shall be furnished by 31st of May 2022. 
   
• Form 10BE is required to be generated and downloaded from the Income Tax portal.
   
• A late fee of Rs. 200 per day has been prescribed under the Act if the certificate is not issued to the donor by the stipulated date i.e. 31st May, 2022 for FY 2021-22.