Statement of Donation to be filed by Trust in Form 10BD from FY 2021-22
Trust or institutions that are approved under section 80G are now required to file statement of donation received and also to issue the certificate to the donor. Deduction on account of donation under section 80G shall be allowed to the donor only on the basis of the statement filed by the trust. If there is any mistake in the aforesaid statement or any addition, deletion or updation is warranted in it, then the institution may also deliver to the said prescribed authority a correction statement for rectification of the information furnished in the statement in prescribed form and verified in prescribed manner. This statement of donations must be furnished electronically and verified digitally in Form 10BD on or before 31st May 2022.
What is Statement of Donation to be filed by the Trust?
Finance Act 2021, has inserted a new provision in section 80G of the Income tax act, 1961 with respect to Statement of Donation to be filed by Trust in prescribed form where trust that are approved under section 80G are now required to file statement of donation received and also to issue the certificate to the donor. On 26th March 2021 the CBDT has issues Notification no. 19/2021 dated 26/03/2021 which includes details about FORM No. 10BD.
Statement of particulars required to be furnished by any research association, university, college or other institution or company or fund (hereinafter referred to as reporting person) under section 80G(5)(iii) or under section 35(1A)(i) shall be furnished in respect of each financial year, beginning from financial year 2021-2022, in Form No. 10BD and shall be verified in the manner indicated therein.
The reporting person, referred to in sub-rule (2) i.e. any research association, university, college or other institution or company or fund, shall, while aggregating the amounts for determining the sums received for reporting in respect of any person, —
(i) Take into account all the donations of the same nature paid by that person during the financial year; and
(ii) Proportionately attribute the value of the donation or the aggregated value of all the donations to all the persons, in a case where the donation is recorded in the name of more than one person and where no proportion is specified by the donors, attribute equally to all the donors.
The above provision shall come into effect from 1st April 2021
What is the mode in which Form 10BD shall be filed and who shall verify the form?
Form No. 10BD, shall be furnished electronically,—
(i) Under digital signature, if the return of income is required to be furnished under digital signature;
(ii) Through electronic verification code in a case not covered under clause (i).
Form No. 10BD shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee in case of Trust the Trustee are authorized to verify Form 10 BD.
What is Form 10BE?
Once Form 10BD is furnished with the Income Tax Department the reporting person shall furnish the certificate of donation the donor in Form No. 10 BE specifying the amount of donation received during financial year from such donor, beginning with the financial year 2021-2022.
The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down the:
(a) Data structure, standards and procedure of furnishing and verification of Form No. 10BD, single or multiple;
(b) The procedure to submit correction statement for rectification of any mistake or to add, delete or update the information furnished in Form No. 10BD; and
(c) The procedure, formats and standards for the purposes of generation and download of certificates in Form No. 10BE
(ii) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall be responsible for,-
(a) formulating and implementing appropriate security, archival and retrieval policies in relation to the Form No.10BD so furnished; and
(b) the day-to-day administration in relation to the generation and download of certificates in Form No. 10BE, from the web portal specified by him or the person authorised by him.
(8) The certificate referred to in sub-rule (6) is required to be furnished to the donor on or before the 31stMay, immediately following the financial year in which the donation is received.
What is the late fee in case of Form 10BD?
In case of delay in filing statement in Form 10BD a late fee of Rs. 200 per day shall be applicable under newly inserted section 234G of the Income-tax Act..
What is the Penalty in case of Form 10BD?
If the trust or institution fails to file such statement, a penalty under Section 271K shall be leviable which shall not be less than Rs.10,000/- and which may extend up to Rs. 1 lakh. For all donations received during a FY starting from FY 2021-22 to be reported in Form No. 10BD
In aggregate per person separately for each nature: