{"id":64001,"date":"2024-05-08T12:39:04","date_gmt":"2024-05-08T07:09:04","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=64001"},"modified":"2024-06-11T16:42:13","modified_gmt":"2024-06-11T11:12:13","slug":"form-10bd-income-tax-act-compliance-guide","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/","title":{"rendered":"Form 10BD of Income Tax Act: A Guide to Compliance"},"content":{"rendered":"\n<p>In the past, in the absence of a reliable verification method, the Income Tax Department approved deductions under Section 80G of the Income Tax Act based solely on taxpayer claims or donation receipts. To solve this, the NGOs that have <a href=\"https:\/\/corpbiz.io\/ngo-registration\">NGO<\/a> registrations that receive gifts are now required to provide a donation certificate to contributors and file a yearly statement of donations, similar to the TDS Reconciliation System (TRACES), with the Income Tax Department. However, on March 26, 2021, the Central Board of Direct Taxes (CBDT) introduced 10BD and 10BE forms via notification no. 19\/2021 to further improve accuracy and openness. The purpose of these forms is to make it easier to precisely reconcile donated funds and claimed deductions. We shall present a thorough rundown of Form 10BD in this article.\u00a0<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#Prerequisites_for_Filing_out_Form_10BD\" >Prerequisites for Filing out Form 10BD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#Basic_Requirements_for_Filing_Form_10BD\" >Basic Requirements for Filing Form 10BD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#Applicability_of_Form_10BD\" >Applicability of Form 10BD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#Legal_Penalties_for_Non-Filing_of_Form_10BD\" >Legal Penalties for Non-Filing of Form 10BD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#Procedure_for_Filing_Form_10BD_Online\" >Procedure for Filing Form 10BD Online<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#Due_Date_for_Filing_Form_10BD\" >Due Date for Filing Form 10BD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#To_Wrap_Up\" >To Wrap Up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/form-10bd-income-tax-act-compliance-guide\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prerequisites_for_Filing_out_Form_10BD\"><\/span>Prerequisites for Filing out Form 10BD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The prerequisites are as follows \u2013&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The applicant should be registered at the e-filing portal.<\/li>\n\n\n\n<li>The applicant should have a valid username and a strong password for the portal.<\/li>\n\n\n\n<li>The PAN status of the taxpayer should be active.<\/li>\n\n\n\n<li>The applicant taxpayer should have a valid DSC if they want to validate through it.&nbsp;<\/li>\n\n\n\n<li>The DSC should already be registered with the portal and should not be expired.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Basic_Requirements_for_Filing_Form_10BD\"><\/span>Basic Requirements for Filing Form 10BD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>10BD form is essential to ensure clarity and transparency in claiming benefits of deductions by non-profit organizations. The basic requirements for filing out Form 10BD are as follows \u2013<\/p>\n\n\n\n<ul>\n<li>ID of the donor donating to the organization<\/li>\n\n\n\n<li>A statement number of the donation&nbsp;<\/li>\n\n\n\n<li>Address of the Donor<\/li>\n\n\n\n<li>Passport\/ PAN\/ Aadhar\/ Driving License\/ Voter ID of the donor<\/li>\n\n\n\n<li>Income Tax Act Section code (Section 35(1)(iii), Section 35(1)(ii), Section 35(1)(iia))<\/li>\n\n\n\n<li>Mode of payment<\/li>\n\n\n\n<li>The type of donation made<\/li>\n\n\n\n<li>Amount of Donation<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_Form_10BD\"><\/span>Applicability of Form 10BD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form 10BD is applicable for institutions that take donations from the public to carry forward their object of a noble cause. It ensures that the entity doesn&#8217;t have to worry about finances to promote its charitable work. The institutions that fall under the ambit of the 10BD form include schools, colleges, universities, churches, research institutes, <a href=\"https:\/\/corpbiz.io\/trust-registration\"><strong>trusts<\/strong><\/a>, NGOs, and similar others. These funds should cover the following sections of the Income Tax Act of 1961 \u2013&nbsp;<\/p>\n\n\n\n<p>1. Section 35 (1A) (i)<\/p>\n\n\n\n<p>2. Section 80G (5) (viii)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_Penalties_for_Non-Filing_of_Form_10BD\"><\/span>Legal Penalties for Non-Filing of Form 10BD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the recently inserted Section 234G, the reporting entity must file Form 10BD for all the donations that it has received under Section 80G; failure to do so would result in a fine of Rs. 200\/-per day of such delay. The late costs listed above cannot exceed the gift amount for which there was a 10BD form filing delay. Not filing such a statement would result in a penalty under Section 271K of the Income Tax Act, which can be as much as Rs. 1,00,000 in addition to a minimum of Rs. 10,000. This penalty is in addition to the late fee for submitting a statement of donation in 10BD form.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Filing_Form_10BD_Online\"><\/span>Procedure for Filing Form 10BD Online<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicant has to mandatorily file a 10BD form to avoid legal consequences and penalties. You can fill out the form through the official income tax department website. The person authorized should sign the form before submitting it to the authorities. The procedure for filing out this form is given below \u2013&nbsp;<\/p>\n\n\n\n<ul>\n<li>You have to first go to the official website of the <a href=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/\" target=\"_blank\" rel=\"noreferrer noopener\">Income Tax Department<\/a> and then log in through your details.&nbsp;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"485\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/05\/official-website-of-the-Income-Tax-Department-1-1024x485.png\" alt=\"official website of Income Tax Dept.\" class=\"wp-image-64006\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/05\/official-website-of-the-Income-Tax-Department-1-1024x485.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/05\/official-website-of-the-Income-Tax-Department-1-300x142.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/05\/official-website-of-the-Income-Tax-Department-1-768x364.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/05\/official-website-of-the-Income-Tax-Department-1.png 1323w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ul>\n<li>Click on Form 10BD by going to the e-file section and then to Income Tax Forms.&nbsp;<\/li>\n\n\n\n<li>You then have to select the financial year for which you have to fill out the form and then click on continue.&nbsp;<\/li>\n\n\n\n<li>You should select the &#8216;Provide Details&#8217; option to complete the form. You can fill out the 10BD form through the dashboard that appears.&nbsp;&nbsp;<\/li>\n\n\n\n<li>10BD form is mainly divided into three parts where you have to provide details like \u2018Basic Information\u2019, \u2018Donor\u2019s and Donations details\u2019, and \u2018Verification of such donation\u2019. These details need to be provided correctly and without any changes made.&nbsp;<\/li>\n\n\n\n<li>The first section where personal information has to be filled is automatically filled once you open that section. You can click &#8216;Confirm&#8217; and then move to the other section.&nbsp;<\/li>\n\n\n\n<li>You must then fill out the other parts of the form with the correct details.&nbsp;<\/li>\n\n\n\n<li>To provide the obligatory fields, the applicant has to download a template of Excel. A CSV file will get downloaded then.<\/li>\n\n\n\n<li>When this CSV file is filled, you need to upload it to the portal.<\/li>\n\n\n\n<li>Preview all the details you entered by clicking on the &#8216;Verification&#8217; tab.&nbsp;<\/li>\n\n\n\n<li>If all the details entered are correct, then select \u2018Proceed to Verify\u2019.&nbsp;<\/li>\n\n\n\n<li>Click on \u2018yes\u2019 to submit the form after verifying all the details entered in it.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>In case you have made errors while filling out the form, you can very easily make amends in the form. When these institutions have filled out this form, they need to issue a donation certificate in favor of the donor through Form 10BE. Now, they are eligible to claim deductions as per <a href=\"https:\/\/corpbiz.io\/80g-and-12a-registration#:~:text=Section%2080G%20of%20the%20Income,to%20these%20non%2Dprofit%20organizations.\"><strong>section 80G<\/strong><\/a> or 35 of the Income Tax Act of 1961.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Due_Date_for_Filing_Form_10BD\"><\/span>Due Date for Filing Form 10BD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The due date for filing the 10BD form is May 31 of every year, immediately after the end of the financial year. Institutions must file this form to claim deductions under sections 80G and 35. Failing to do so will attract legal recourse, penalties, and fines. The government made it mandatory to fill out the form in the recent amendment to the Income Tax Act.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To_Wrap_Up\"><\/span>To Wrap Up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Finance Act 2021 has undergone a recent revision that has increased the importance of Form 10BD. It is a significant step in improving the transparency of donation reporting systems. For <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>income tax<\/strong><\/a> purposes, charity organizations must fully understand the nuances of the 10BD form and the online filing methods. This form plays a crucial part in making sure that donations are reported accurately and responsibly, following the changing regulatory landscape. To ensure compliance with the updated regulations and maintain the integrity of their financial reporting procedures for charitable contributions, organizations need to get familiar with the 10BD form.<\/p>\n\n\n\n<p>Corpbiz can help you fill out the form and claim deductions under section 80G of the act by following all the prerequisites. The expert guidance available at our organization cannot be underestimated since they carry a total of 40 years of industry experience. We can help your organization claim tax benefits at a reasonable cost and in a quick time.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3>Why was Form 10BD introduced?<\/h3><p class=\"saswp-faq-answer-text\">In the earlier days, there was no record of donations received, and these institutions used that fraudulently and claimed more deductions than they were eligible for. The 10BD form was introduced to ensure clarity and transparency in claiming deduction benefits by non-profit organizations.\u00a0<\/p><li style=\"list-style-type: none\"><h3>What is the minimum amount of donation received to fill out Form 10BD?<\/h3><p class=\"saswp-faq-answer-text\">There is no minimum donation limit for the 10BD form as per the act, and no threshold limit applies to the number of donations received. Hence, all the donations received have to be filled out.\u00a0<\/p><li style=\"list-style-type: none\"><h3>When can charitable institutions claim deductions?<\/h3><p class=\"saswp-faq-answer-text\">When these institutions have filled out the 10BD form, they need to issue a donation certificate in favor of the donor through Form 10BE. Now, they are eligible to claim deductions as per section 80G or 35 of the Income Tax Act of 1961.\u00a0<\/p><li style=\"list-style-type: none\"><h3>Who is required to fill out Form 10BD?<\/h3><p class=\"saswp-faq-answer-text\">10BD form is applicable for institutions that take donations from the public to carry forward their object of a noble cause, ensuring that they don\u2019t have to worry about the finances to promote their charitable work. The institutions that fall under the ambit of the 10BD form include schools, colleges, universities, churches, research institutes, trusts, NGOs, and similar others.\u00a0<\/p><li style=\"list-style-type: none\"><h3>Is it mandatory to file Form 10BD?<\/h3><p class=\"saswp-faq-answer-text\">Yes, it is mandatory to file a 10BD form with the income tax department. However, if any charitable institution hasn\u2019t received any donations from the public in that year, there is no need to file a 10BD form.\u00a0<\/p><li style=\"list-style-type: none\"><h3>Can a trust file Form 10BD, having only provisional approval u\/s 80G?<\/h3><p class=\"saswp-faq-answer-text\">Having a regular or provisional approval under sections 80G or 35 doesn\u2019t make any difference, and they can file a 10BD form. The status of approval is irrelevant and the organization has to file a 10BD form if it has received a donation mandatorily.\u00a0<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>In the past, in the absence of a reliable verification method, the Income Tax Department approved deductions under Section 80G of the Income Tax Act based solely on taxpayer claims or donation receipts. To solve this, the NGOs that have NGO registrations that receive gifts are now required to provide a donation certificate to contributors [&hellip;]<\/p>\n","protected":false},"author":86,"featured_media":64002,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,3,324],"tags":[4272,208,8,4273,4274],"acf":{"service_id":"78"},"authorName":"Ilma Siddiqua","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/ilma.png","authorDescription":"Ilma Siddiqua is an environmental professional with 8+ years of healthy experience in Business Compliance MOEF, Tyre Waste, Hazardous Waste, Battery Waste, AVSF, EPR, State Pollution Control Board, etc. Penning words give her the utmost pleasure, and that\u2019s why she opted for drafting amazing writeups that move the readers to the core.","postViews":4092,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/64001"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=64001"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/64001\/revisions"}],"predecessor-version":[{"id":64719,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/64001\/revisions\/64719"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/64002"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=64001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=64001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=64001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}