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IMP for Income Tax Deduction against Donation

Donation Certificate in Form 10BE and Donation statement in Form 10BD

Till last years income tax return filing, The income tax department allowed deduction u/s 80G of the Income Tax Act based on the claim made by the assessee or at the most based on the copy of the donation receipt presented by the assessee.

 Until the last  year there was no way to counter check the accuracy of the donations paid.

From 01/04/2021, the trust receiving donation shall file a statement of donation every year to the Income Tax Department and also issue a certificate of donation to the donor.

This mechanism is somewhat similar to the TDS Reconciliation system (TRACES) of the Income Tax Department.

Every Trust approved under section 80G shall have to file a statement of donation in form 10BD on Income Tax Portal providing the details of all the donations received during the financial year.

Form 10BD is also required to be filed by research institutions, colleges, universities or other institutions under clause (i) to section 35(1A) of the IT Act.

After Form 10BD filing such entity shall provide certificate of Donation in Form 10BE to all such donors whose donations were specified in  Donation Statement.

Procedure and time limit for filing form 10BD is as follows:

 The form is required to be filed electronically

The form shall be signed through a digital signature of a person authorized to sign the return of the income.

Alternatively, it can be filed through Electronic Verification Code (EVC). The form is required to be filed once in a financial year.

The last date for filing the form for financial year 2021-22 was 31st May, 2022.

 For filing Form 10BD  Every Charitable Organization is required to collect requisite details/ information from donors while receiving the donations and maintain the list of the same


With the introduction of Form 10BD, it is now crucial for the donor to not only obtain a donation receipt but also Certificate of Donation in Form 10BE in order to claim deduction. So buck up Guys!

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