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May 7, 2020

Filing of statement of donation by Trust Registered in Section 80G from FY 2020-21

by facelesscompliance in Income Tax

Filing of Annual Statement of Donation by Entities to cross check claim of donation by donor 80G from FY 2020-21

The Finance Act 2020, has made mandatory for all entities registered in Section 80G, Trust or institution (donee) have to submit a Annual Statement of Donation for such period as may be prescribed Income Tax Authority or the person authorized by such authority within such time as maybe prescribed. The Income Tax Department has not yet came out with guidelines or forms for the same.

Why Annual Statement of Donation is Required?

There are many taxpayers who are claiming false 80G deduction claim at the time of filing Income Tax Returns. The CPC can only verify that the particular Trust or Entity is registered in Section 80G and has valid certificate

Which Online Form needs to be filed for Annual Statement of Donation?

The Form needs to be filed Online by the person authorized by Trust or Entity within such time as maybe prescribed by the Income Tax Department. The Income Tax Department has not yet came out with guidelines or forms for the same.

Can Trust Entity Revised the Annual Statement of Donation?

If Annual Statement of Donation contains any mistakes or there is a need for any addition or updation of information in the same then a correction
statement can be filed like we file revised Income Tax and TDS Returns

What all Information will be asked in Annual Statement of Donation?

The Following information will be asked such as the Name, Address, PAN Number, Aadhar Number, Date of Donation, Mode of Donation and Amount donated

How a Donors will Claim the deduction in Section 80G from FY 2020-21?

All Donors will get 80G deduction only based on Annual Statement of Donations filed by the Trust or Entity. It would be in similar lines like TDS deducted and viewed in Form 26AS

How Donors can check if the Annual Statement of Donation has their name?

Donors need to download Form 26AS. it will have all the information of the Donation made and Entity details. Income Tax Forms will have auto populated options so that returns can take the donation figure and calculate deduction automatically

Further The Trust or Entity shall furnish to the donor, a certificate which shall specify the amount of donation in a prescribed manner containing prescribed particulars and within prescribed time as per rules of Income Tax Department which will be notified soon

What if Trust or Entity Fail to File Annual Statement of Donation?

Incase there is a delay in filing, a late fee of Rs. 200/- per day shall be applicable Section 234G , which is mandatory. A penalty of Rs. 10,000/- which may go up to Rs. 10,00,000/- u/s. 271K.

What will all Trust or Entities who has 80G Certificate need to ensure now?

All Trust or Entities should keep a detail records of all the donation received and 80G receipt provided. Further as during FY 2019-20 you can donate even after 31 March, i.e from 1 April 2020 to 30 June 2020 and claim 80G deduction in FY 2019-20, it will be a cumbersome task for Trust to record and maintain in which year donors will claim the deduction. The Donors has option to claim in FY 2019-20 and FY 2020-21. Income Tax Department is expected to clarify on this soon.

The applicability is from 1 June 2020, however we need to wait for clarification from Income Tax Department.

Detail as required above should be maintained by Trust or Entity till there is clarification from Income Tax Department.

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