What Is Form 10BD Income Tax Act: Due Date, Applicability & How To File Online?

Section 80G provides deductions for individuals making donations to specified institutions, mostly charitable in nature. Section 35 provides deductions for donations made to institutions and universities engaged in research activities. 

Previously, there was no definite way to validate the amount of donations received by charitable institutions like colleges, schools or universities. As a result, sometimes claims of donations were proved to be false or fraudulent. To tackle such fraudulent activities, the government introduced the donation statement in Form 10BD. 

Let’s dive deeper into Form 10BD and its related aspects. 

Form 10BD of the Income Tax Act

• Under Section 80G and section 35 of the Income Tax Act 1961, a deduction on payment of donations is available. 
• Accordingly, the 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. 

Form 10BD Applicability

Every organization that falls under charitable institutions including trusts, colleges, schools, research institutions, universities and others are eligible to file Form 10BD income tax. Also, it is important to note that the funds of these organizations must cover the following section:

• Section 35 (1A) (i) of the Act
• Section 80G (5) (viii) of the Act

Contents of Form 10BD

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: 

Donor ID is a unique number to authenticate and identify the donor. It may be a PAN (Permanent Account Number), Aadhaar number, or any other valid ID such as a Passport or Driving License. The group or organization must collect this information from each donor and mention it while filling out Form 10BD

Statement Number:

Each donation report gets a unique Statement Number, which makes it easier to track reports for every financial year. This number also allows for quick access during any reviews by the Income Tax Department.

PAN/Passport/Aadhaar card/Driving License and another unique identification number:

To maintain transparency and authenticity, donors must submit a valid identification number. Submitting these IDs accurately helps to minimize the risk of fraudulent claims for deductions.

Donor’s address: The address of the donor is a key piece of information for recognizing who they are. Complete and accurate addresses are necessary to track donors and maintain transparency in the donation process.

Section code (Section 35(1)(iii), Section 35(1)(ii), Section 35(1)(iia)): 

According to the Income Tax Act, donations can be classified into different categories, each offering distinct tax benefits. To ensure proper classification, Form 10BD must include the relevant Section Code. The section codes to include are:

• Section 35(1)(iii): Donations to research institutions or associations focused on scientific research.
• Section 35(1)(ii): Donations to universities or educational institutions that conduct research.
• Section 35(1)(iia): Donations to specific research associations involved in social sciences or statistical research.

Getting the section code right is important for determining the correct tax benefits for the donor.

Donor’s name: 

The name of the donor should be precisely the same as the name in the ID furnished (e.g., PAN or Aadhaar). It is very important to fill the name and the spelling thereof correctly to avoid any mistakes in the records and to facilitate the accurate filing of the donation statement.

Mode of receipt (Cash, cheque/draft, kind, and others): 

The Mode of Receipt shows the way a donation was given, and there are several choices available:

Cash: Donations can be made in cash, but keep in mind that if you want a tax deduction, cash donations over Rs. 2,000 aren’t allowed.

Cheque/Draft: This includes payments made through bank instruments like cheques or demand drafts.

Kind: These are non-cash donations, such as property, goods, or services, which need to be properly appraised and valued for reporting purposes.

Others: This category covers electronic payments like bank transfers, credit cards, or any other payment methods.

Donation type including specific, corpus, restricted grant or others: 

The Type of Donation needs to be categorized for accurate reporting:

Specific Donations: These are contributions aimed at a specific cause, like funding for construction or research grants.

Corpus Donations: These are large donations that support the institution's general fund, focusing on long-term financial stability rather than specific activities.

Restricted Grant: These donations are designated for a specific project or purpose, ensuring that the funds are used solely for that aim.

Others: Donations that may not fall into the above categories but still require classification.

Accurate classification helps in the proper distribution of funds and keeps accounting clear.

Donation Amount: 

This relates to the complete sum donated by each individual during the financial year. It's essential to document the exact donation amounts to ensure transparency and avoid any misreporting. The amounts should correspond with the receipts issued to the donor.

Receipt Number of the receipt against donation: 

It's important to issue a receipt for each donation to ensure transparency and accountability in a trust. This not only acknowledges the contribution formally but also provides donors with the necessary documentation for their taxes.

Form 10BD Due Date  

• Form 10BD due date for FY 2025-26 is 31st May 2026. 
• This signifies that all eligible trusts, organizations, and institutions need to file the donation return in Form 10BD on or before 31 May in the following financial year in which they received the donation.

Consequences on Default

• In the scenario of failure to provide a donation return or statement of donation within a stipulated time, an additional fee and a penalty will be levied. 
• As per Section 234G of the Income Tax Act, a penalty fee of Rs 200 per day is applicable for any delay. 
• Also, the specified institutions that have received donations can claim exemption only if they file Form 10BD within the prescribed due date. 
• Additionally, according to Section 271K of the Act, failure to furnish the statement of donation in Form 10BD can attract a minimum penalty of Rs 10,000 and a maximum penalty of Rs 1,00,000. 

How To File Form 10BD Online?

As per the new rules, it is mandatory to file Form 10BD electronically or digitally through the official website of the Income Tax Department. Also, it is important to note that the authorised person needs to sign this Income Tax Return of the reporting entity. 

Below you will find a step-by-step guide to filing Form 10BD:

• Navigate to the official Income Tax website and log in by using valid credentials.
• Under the “e-file” tab, click on “Income Tax Forms” and locate Form 10BD.
• Select the required financial year and click on the “Continue” option.
• On clicking the "Provide details" tab, a new dashboard will appear on your screen to file Form 10BD.
• Provide all the relevant information in this form carefully. You will notice that this form is divided into three parts. This includes: “Basic information”, “Details about the donation and donors”, and “Verification”.
• The first part consists of basic information automatically filled in by the system. You do not need to input any details, simply click on "Confirm".
• Fill out the necessary information in the second and third parts of this form. 
• Download an Excel template to provide obligatory fields. Then a CSV file will be downloaded. 
• After filling in all data, upload this CSV file to the portal. This online form comes with the auto-save feature in order to retrieve the data entered.
• Click on the “Verification” tab and preview all relevant details.
• After verifying, if all details are accurate, select “Proceed to verify”.
• Click on "Yes" in order to file the form and download the acknowledgement. Furthermore, in case of any errors, you can revise Form 10BD quite easily.

After filing this Form 10BD, the charitable organisation needs to download and issue a Certification of Donation through Form 10BE and must provide it to the donors. Thereafter, they can claim a deduction u/s 80G or Section 35 of the Income Tax Act.

How To Download Filed Form 10BD?

Here is a complete step-by-step guide:

• On the official website of the Income Tax Department, click on the e-File menu.
• There, click “Income Tax Forms” and from the drop-down menu, select "View filed forms".
• A new webpage will appear. Click on 'Statement of Particulars to be filed”.
• Then, tap on the “View all” option.
• Finally, select “Download form” in order to download your online filed form of Form 10BD. 

Final Word

Due to the introduction of the new amendment by the Finance Act 2021, Form 10BD has served as a turning point to bring more transparency to the reporting systems of donation. Therefore, for charitable institutions, it is important to know everything about Form 10BD income tax and how to file it online.