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
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