Form 10BD Explained

Form 10BD is a statement of donations received to be filed mandatorily as per section 80G(5)(viii) and as per section 35(1A)(i). It shall be furnished electronically using DSC or EVC. Note: If no donation is received during the financial year, the above form is not needed.

Q1) What is the due date for filing form 10BD?

Ans:The statement of donations for particular Financial Year 31st of May of that year.

Q2) Can an organisation file multiple Form 10BD?

Ans: Under the Income Tax Rules there is no specific provision barring multiple filing of Form 10BD. Moreover The notes below the online form 10BD makes it clear that Form 10BD is allowedto be filed multiple times for the same.

 Q3) If no donation is received, whether Nil return to be submitted?

Ans: The current Form 10BD does not seem to be allowing filing of Nil returns.

Q4) Companies who are categorised as foreign sources, having PAN, and have given grants under CSR do require donation receipt and would claim tax benefit. How should we ensure its reconciliation, as this would be considered as income from foreign source in Income Tax returns?

Ans: Donations received from all companies registered in India should be reported in Form 10BD even if it is treated as foreign contribution for FCRA purposes. 

Q5) What is the reporting requirment for anonymous donation ?

Ans: Anonymous donations are not required to be reported under Form 10BD. However, anonymous donation can be exempt or taxable based on the quantum of donation and also the nature of the organisation. Anonymous donation upto 5% of total income are not subject to tax. Further, anonymous donation received by a partly charitable and partly religious organisation is also totally exempt from tax.

Q6) Can an Indian donor request to exclude its name from Form 10BD?

Ans: No, statutory reporting cannot be optional at the discretion of either donor or the donee. If the NGO possesses the PAN and other details it has to upload the informations in Form 10BD. Otherwise also it is not advisable to exclude material amounts from Form 10BD in the light of the provisions of 115BBC regarding anonymous donation which may result needless clarificatory processes before the Assessing Officer.

Q7) What if my organization fails to comply or misses the due-date of 31st May?

Ans:Every organization having 80G or 35(1) is mandated to comply with the filing of Form 10BD & Form 10BE, and failure to comply will attract a fee of Rs.200/- per day of delay as per newly inserted section 234G. Additionally, failure to file such a statement will also attract penalty u/s 271K, which shall not be less than Rs.10,000/- and which may extend up to Rs.1,00,000/-.