10BD/10BE Filling

Under Section 80G of the Income Tax Act 1961, a deduction on payment of donations is applicable. Accordingly, Finance Act 2021 introduced an amendment where the trust that possesses an 80G certificate needs to submit the statement of particulars of donation in each financial year in Form 10BD to the authority within the stipulated time. Failure in furnishing the statement will attract hefty penalties.

The main purpose of this tax provision is to bring transparency and tackle the issue regarding false or incorrect deduction claims. So, for filing Form 10BD, entities must fill in the necessary information. This includes the following:

• Donor’s ID
• Statement Number
• PAN/Passport/Aadhaar card/Driving License and another unique identification number.
• Donor’s address
• Section code (Section 35(1)(iii), Section 35(1)(ii), Section 35(1)(iia))
• Donor’s name
• Mode of receipt (Cash, cheque/draft, kind, and others)
• Donation type including specific, corpus, restricted grant or others
• Donation Amount