Form 10BD: Statement Of Donations And It’s Implications.

CBDT has recently prescribed a new Form 10BD with regards to deductions claimed u/s 80G to be filed by specified donors. Here are the details regarding the Form 10BD for you to grasp the concept.

What is Form 10BD?

Finance Act 2021 introduced an amendment in section 80G of the IT Act and inserted a new provision in the section under which every trust (approved u/s 80G) is required to furnish the statement of particulars of donation in respect of each financial year beginning from F.Y. 2021-22.

Form 10BD is also required to be furnished by research institutions, colleges, universities or other institutions under clause (i) to section 35(1A) of the IT Act.

Procedure and Time limit for filling

a) The form is required to be filed electronically.

b) The form shall be signed through a digital signature. EVC can also be used.

c) To be filed once in a financial year.

Responsible party to file the form

Any research association, university, college or other institution or company or fund:

a) under clause (viii) of sub-section (5) of section 80G;

b) clause (i) to sub section (1A) of section 35.

Contents required to file the form:

Statement number.
Pre acknowledgement number.
Donor’s ID
Unique Identification Number.
Section code.
Name and address of donor
Unique Registration Number and date of issue.
Donation type.
Mode of Receipt and amount.

Introduction of new compliance via Form 10BD/ Form 10BE is a crucial step as details of the donations will now be readily available in Form No. 26AS and in compliance portal, thus it will bring more transparency.

Late Fee

A late fee of Rs. 200 per day will be levied u/s 234G of the Income-tax Act 1961 in case of delay in filing form 10BD. However, the late fee shall not exceed the donation amount in respect of which delay has occurred in filing form 10BD.

Apart from this fee, failure to file such statement will also attract penalty u/s 271K, which shall not be less than Rs. 10,000/- but may extend up to Rs. 1,00,000/- .