Form 10BD and 80G Compliance

4.1 Legal Framework

Section 80G(5)(viii) of the Income Tax Act, 1961, and Rule 18AB of the Income Tax Rules, 1962, mandate the filing of Form 10BD for organizations approved under Section 80G. This form serves as a statement of donations received, ensuring transparency and enabling donors to claim tax deductions under Section 80G.

4.2 What is Form 10BD?

Form 10BD is a critical compliance requirement for NGOs and charitable institutions approved under Section 80G. It requires reporting detailed information about donations received during the financial year, including donor identities, donation amounts, and modes of payment. After filing, NGOs issue Form 10BE to donors, certifying the donations for tax deduction purposes.

4.3 Who Must File

Organizations approved under Section 80G or Section 35(1A)(i) of the Income Tax Act, 1961, including trusts, societies, Section 8 companies, colleges, schools, and universities, must file Form 10BD. This ensures that donations are properly documented for tax purposes.

Example: "Green Earth Foundation," an 80G-approved NGO in Bengaluru, receives a 10 lakh donation from a corporate donor in FY 2024-25. It must file Form 10BD to report this donation and issue Form 10BE to the donor for tax deduction claims.

4.4 Due Date

Form 10BD must be filed by May 31st following the financial year (e.g., FY 2024-25 donations are reported by May 31, 2025). Timely filing is essential to avoid penalties and ensure donors can claim deductions.

4.5 Penalties

Non-compliance with Form 10BD filing attracts penalties under the Income Tax Act:

• Section 234G: A late filing fee of 200 per day, calculated from the due date until submission.
• Section 271K: A penalty ranging from 10,000 to 1,00,000 for failure to file or furnishing incorrect particulars.

  Example: If "Green Earth Foundation" files Form 10BD on June 15, 2025, 15 days late, it incurs a penalty of 200 × 15 = 3,000 under Section 234G, plus a potential of 10,000 to 1,00,000 under Section 271K if the delay is deemed significant.

4.6 Filing Process

The filing process is conducted through the Income Tax portal (https://www.incometax.gov.in/iec/foportal/):

1. Log in to the Income Tax portal using the organization’s PAN and credentials.
2. Navigate to ”e-File” > ”Income Tax Forms” and select Form 10BD
3. Enter basic information (organization details, financial year) and donation details (donor PAN, Aadhaar, amount, mode of payment, and type of donation).