Form 10BD & Form 10BE – A CA’s Guide to Donation Compliance under Section 80G

Charitable institutions and NGOs registered under Section 80G of the Income Tax Act are required to maintain strict reporting of donations received. With the introduction of Form 10BD and Form 10BE, compliance has become more structured but also more demanding. Chartered Accountants play a critical role in ensuring accurate reporting to protect both the institution and the donors who claim tax benefits.

What is Form 10BD?

Form 10BD is an annual statement of donations that every trust, NGO, or Section 80G-approved institution must file with the Income Tax Department.

• Filed by: Donee (the trust or institution receiving donations).

• Covers: All donations received in a financial year.

• Purpose: To provide the Income Tax Department with donor-wise details for cross-verification of tax deduction claims.

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What is Form 10BE?

Form 10BE is the certificate of donation issued to each donor after filing Form 10BD.

• Filed by: Donee institution.

• Issued to: Donors (individuals or corporates) so they can claim 80G tax deduction.

• Details included: PAN of donor, amount donated, mode of donation, unique donation reference number (generated after filing Form 10BD).

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Filing Process for Form 10BD

CAs advising NGOs/trusts should ensure the following filing steps are followed:

1. Login to e-Filing Portal – Using credentials of the trust/institution.

2. Navigate to Form 10BD – Available under “e-File → Income Tax Forms → File Income Tax Forms.”

3. Enter Donation Details –

   • Name of donor

   • PAN/Aadhaar/unique ID

   • Address of donor

   • Mode of donation (cash, cheque, electronic)

   • Amount of donation

4. Upload & Submit – Validate with DSC and submit.

5. Download Acknowledgement – Required for audit and compliance.

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Issuance of Form 10BE

Once Form 10BD is filed, the portal allows generation of Form 10BE:

• Certificate must be issued electronically.

• Each certificate carries a unique donation reference number.

• Trusts/NGOs must provide it to donors before they file their income tax return.

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Due Dates

• Form 10BD Filing: On or before 31st May following the financial year.

• Form 10BE Issuance: Immediately after Form 10BD is filed; must be available to donors before tax return filing.

Penalties for Non-Compliance

CAs should caution clients that delays or errors attract heavy consequences:

• Late Filing Penalty: ₹200 per day under Section 234G.

• Penalty for Incorrect Information: Ranging from ₹10,000 to ₹1,00,000 under Section 271K.

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Best Practices for CAs

• Maintain donor-wise records (PAN, Aadhaar, donation mode).

• Reconcile donations with bank statements.

• Cross-check donor data to prevent mismatches.

• Issue Form 10BE well before the tax filing season to avoid donor complaints.

Key Takeaway

For trusts and NGOs, compliance with Form 10BD & 10BE is non-negotiable. CAs must implement strong record-keeping and timely filing to safeguard institutions from penalties and donors from deduction denials.