Form 10BD: A Simple Guide For NGOs And Charitable Trusts In India

Form 10BD: A Simple Guide for NGOs and Charitable Trusts in India

If you run a charitable trust, NGO, or any organisation that receives donations, you have probably heard about Form 10BD. It sounds complicated, but it is actually not that hard once you understand what it is and why it exists.

Let us break it down, step by step.

What Is Form 10BD?

Form 10BD is a statement of donations that a charitable organisation must file with the Income Tax Department every year.

Think of it as a list that tells the government:

• Who donated to your organisation
• How much they donated
• What kind of donation it was (cash, cheque, property, etc.)

This form was introduced to make things more transparent. Before this, it was hard for the government to check whether donations were real or fake.

Who Needs to File Form 10BD?

You need to file Form 10BD if your organisation:

• Is registered under Section 80G of the Income Tax Act (this is the section that allows donors to claim tax deductions on their donations)
• Is registered under Section 35 (for scientific research organisations)

In simple words, if your donors get a tax benefit for donating to you, then you must file Form 10BD.

Why Was Form 10BD Introduced?

Earlier, donors used to claim tax deductions based on a simple receipt from the NGO. There was no way for the government to cross check this easily.

Form 10BD was introduced from Financial Year 2021-22 onwards to fix this. Now the organisation itself reports all donations received. This makes it harder for people to show fake donations and claim false tax benefits.

It is a good thing for honest organisations as it builds trust and keeps things clean.

What Is Form 10BE?

When you file Form 10BD, the organisation also issues a Form 10BE to each donor.

Form 10BE is basically a donation certificate. The donor uses this certificate to claim their tax deduction under Section 80G.

So, the flow is simple:

Donor gives money → Organisation files Form 10BD → Organisation issues Form 10BE to donor → Donor uses Form 10BE to claim tax benefit

What Details Do You Need to Fill in Form 10BD?

For each donation received, you will need:

• Name of the donor
• PAN or Aadhaar number of the donor
• Address of the donor
• Amount donated
• Mode of donation (cash, cheque, online transfer, kind, etc.)
• Type of donation (corpus, specific grant, or general)

This is why it is important to collect proper details from your donors at the time of donation itself. Do not wait until the last minute!

What Is the Due Date for Filing Form 10BD?

Form 10BD must be filed on or before 31st May of the following financial year.

For example:

• For donations received in FY 2024-25, the form must be filed by 31st May 2025

After filing Form 10BD, the organisation must issue Form 10BE to each donor by 31st May as well.

How to File Form 10BD : Step by Step

Here is how you can file it on the Income Tax portal:

Step 1: Go to www.incometax.gov.in

Step 2: Log in using the organisation's PAN and password

Step 3: Go to e-File → Income Tax Forms → File Income Tax Forms

Step 4: Search for Form 10BD and click on it

Step 5: Select the Financial Year for which you are filing

Step 6: Fill in the details of all donations received that you can either enter them one by one or upload a CSV file (a spreadsheet with all donor details)

Step 7: Review the information carefully

Step 8: Submit the form using Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)

Once the form is submitted successfully, you can download Form 10BE for each donor from the portal itself.

Common Mistakes to Avoid:

• Missing PAN/Aadhaar of donors:  Without this, the donation entry may be marked as incomplete
• Filing late: There can be penalties for late filing
• Wrong donation type: Make sure you correctly classify whether it is a corpus donation, specific grant, or general donation
• Not issuing Form 10BE: Donors need this certificate to claim their deduction; do not forget to send it to them

What Happens If You Don't File Form 10BD?

If you miss filing Form 10BD, there can be consequences:

• A penalty of rupees 200 per day for each day of delay (under Section 234G)
• Donors may not be able to claim their 80G deduction for that year
• It can affect your organisation's reputation and registration status

So, it is always better to file on time.