Ensure 80G compliance, donor confidence and avoid penalties with Professionals Law.
Introduction and Its Compliance
Form 10BD is an annual statement required to be furnished by charitable institutions, NGOs or any other entities which has been registered under Section 12A, 12AB or 80G of the Income Tax Act, 1961 and who has received donations. Form 10BD is now to be filed by 31st of May every year for the preceding financial year. It demands a full disclosure of donor name, amount, mode and purpose of donation. Filing of Form 10BD will allow donors to claim tax deductions under Section 80G. Professionals Law helps NGOs and charitable organizations with proper, error-free and timely filing of Form 10BD to help avoid penalties and keep their reputation intact with stakeholders and donors.
Why It Is Needed
Form 10BD is to ensure transparency and traceability in donation reporting, said the officials. It will also ensure that charitable institutions remain under the purview of the tax authorities and that donations give the maximum 80G benefit that donors are entitled to under the law. Failure to file or wrong filing can lead to penalty and may endanger the 80G/12A registrations. Professionals Law assists the entities not only in decoding the complicated nature of Form 10BD but also in maintaining the donor databases and ensuring that the return of Form 10BD is made on time and accurately. With expert support, Professionals Law ensures protection from end to end and allows charitable entities to maintain public confidence and their tax exempt status.
Benefits and Advantages
Ensures Donor Confidence
Filing Form 10BD assures donors that their contributions are reported to the tax authorities, enabling them to claim tax deductions seamlessly.
Maintains 80G/12A Validity
Timely compliance with Form 10BD ensures the continued registration under Sections 80G and 12A, securing tax-exempt status for the organization.
Avoids Penalties
Filing Form 10BD within the deadline helps organizations avoid penalties of ₹200 per day of default under Section 234G of the Income Tax Act.
Promotes Financial Transparency
Helps maintain clear records of donations and enhances organizational transparency and credibility before regulators and stakeholders.
Eligibility Criteria
- Entities registered under Section 12A, 12AB or 80G of the Income Tax Act.
- Trusts, NGOs, societies and Section 8 companies that receive donations.
- Institutions that issue donation receipts for tax deduction purposes.
- Registration in the Income Tax e-filing portal is mandatory.
Book a Free Consultation with Professionals Law
Documents Required
Steps for Applying
Consultation with Professionals Law
Initial review of eligibility and compliance requirements.
Data Collection
Gathering of donor details, payment proofs and donation receipts.
Donor Data Verification
Scrutiny and verification of donor information for accuracy.
Preparation of Form 10BD
Compiling data in the prescribed format for submission.
Online Filing on Income Tax Portal
Professionals Law files the form using DSC or EVC authentication.
Issuance of Form 10BE
Upon filing, Professionals Law assists in generating Form 10BE for donors.
Frequently Asked Questions
Who is required to file Form 10BD?
What happens if I don’t file Form 10BD?
Can Form 10BD be revised after submission?
Is donor PAN mandatory in Form 10BD?
What is Form 10BE?
Is digital signature necessary for filing Form 10BD?
Can Professionals Law file the return on behalf of my organization?
What types of donations need to be reported?
How can Professionals Law help with Form 10BD filing?
Instant Expert Connect
Free Consultation
Get direct advice from our senior CAs & Lawyers within 24 hours.
