With increasing donations to trusts and NGOs, especially after COVID-19, the Income Tax Department has tightened compliance for charitable institutions. Donors can only claim deductions under Section 80G or 35 if the donee (trust/institution) files Form 10BD and issues a Form 10BE certificate to the donor.

For Chartered Accountants handling trusts, societies, and NGOs, timely filing of Form 10BD and accurate generation of Form 10BE is now a non-negotiable compliance requirement. Errors or delays can directly impact donor tax benefits — and expose the trust to penalties.

What is Form 10BE?

Form 10BE is a certificate of donation generated by a charitable trust or institution after filing Form 10BD (Statement of Donations).

• It contains the donor’s details, PAN/Aadhaar, donation amount, mode of payment, and approval details of the trust.

• The donor uses Form 10BE to claim 80G/35 deduction in their Income Tax Return.

• Without Form 10BE, donors cannot claim tax benefits even if they donated to an approved institution.

Who Needs to File Form 10BE?

Form 10BE must be issued by every:

• Charitable trust registered under Section 80G.

• Research institution/university registered under Section 35.

• NGO approved by the Income Tax Department to receive tax-deductible donations.

Chartered Accountants usually assist these entities in preparing, filing, and issuing donation certificates.

Due Date for Filing Form 10BD and Issuing Form 10BE

• Form 10BD (Statement of Donations) must be filed annually by 31st May of the financial year following the year in which donations are received.

• After filing 10BD, the institution must download and issue Form 10BE to each donor by the same deadline.

📌 Example: Donations received in FY 2024-25 → File Form 10BD by 31st May 2025, then issue Form 10BE to donors.

Step-by-Step Process: Filing Form 10BD and Generating Form 10BE

Step 1: Log in to e-Filing Portal

• Go to www.incometax.gov.in.

• Log in using the trust’s credentials (PAN and password).

Step 2: File Form 10BD

• Navigate to e-File → Income Tax Forms → File Income Tax Forms.

• Select Form 10BD – Statement of Donations.

• Upload donor-wise details:

  • Donor name

  • PAN/Aadhaar

  • Donation amount

  • Mode of receipt (cash, cheque, electronic)

  • Section code (80G/35)

Step 3: Generate Form 10BE

• Once Form 10BD is successfully filed, the system auto-generates Form 10BE.

• Download donor-wise Form 10BE certificates.

• Share certificates with each donor before 31st May.

Contents of Form 10BE

Form 10BE certificate includes:

• Name, PAN, and Aadhaar of the donor.

• Donation amount and date.

• Section under which donation is eligible (80G/35).

• Approval number and validity period of the trust/NGO.

• Unique Donation Reference Number (DRN) from Form 10BD filing.

Penalties for Non-Compliance

• Late filing of Form 10BD: Penalty of ₹200 per day under Section 234G.

• Incorrect information in Form 10BD: Penalty ranging from ₹10,000 to ₹1,00,000 under Section 271K.

• Not issuing Form 10BE: Donors lose deduction, impacting trust reputation and donor relationships.

Key Compliance Tips for CAs

1. PAN Validation – Ensure donor PAN/Aadhaar details are correct before uploading to avoid rejection.

2. Cross-check Donation Mode – Cash donations above ₹2,000 are not eligible under 80G. Ensure only valid payments are reported.

3. Maintain Donor Ledger – Keep donor records reconciled with books of accounts to match Form 10BD filing.

4. Automate Annual Compliance – Set reminders for 31st May filing to avoid penalties.

5. Build Trust with Donors – Prompt issuance of Form 10BE strengthens donor confidence in the institution.

Why Form 10BE Matters for CA Practice

• Directly impacts donor tax benefits and satisfaction.

• Non-compliance risks penalties and damages the credibility of the institution.

• A new revenue stream for CAs — annual donor compliance management for NGOs and trusts.

Conclusion

For CAs handling trusts, NGOs, or research institutions, Form 10BE is not just another filing requirement — it’s the bridge between donors and their tax benefits. Ensuring accurate and timely filing of Form 10BD and issuance of Form 10BE certificates protects clients from penalties while preserving donor confidence.