Recently, there has been considerable discussion surrounding a new provision in Section 80G of the Income Tax Act, 1961, specifically related to Form 10BD and Form 10BE. If you engage in charitable donations, you can avail of deductions under Section 80G by using Form 10BE. If you're curious about how this works, read on for a comprehensive overview. In this article, we will delve into Form 10BE and its associated details.
All About Form 10BE in Income Tax
Form 10BE plays a pivotal role in ensuring that the donations received by charitable institutions align with taxpayers' deduction claims. This form serves as concrete evidence to substantiate deductions claimed under Section 80G. Following the filing of Form 10BD or a statement of donations, the charitable institution is obligated to download and issue this certificate of donation (Form 10BE) to the donor.
This certificate contains essential information about both the charitable institution and the donor, including:
- PAN (Permanent Account Number)
- Name of the charitable trust
- Address of the trust
- Name of the donor
- Date of approval
- Unique identification number (Aadhaar, PAN, or other)
- Address of the donor
- Financial year
- Type of donation (Corpus, specific grants, or other)
- Section under which the deduction is eligible after donating (e.g., Section 80G (5)(vi), Section 35 (I)(ii), Section 35(I)(iii), Section 35 (I)(iia))
- Total donation amount
Form 10BE Due Date
The due date for issuing Form 10BE coincides with the date of issuance of Form 10BD. Therefore, it is mandatory to provide Form 10BE on or before May 31 of the financial year following the year in which the charitable institution received the donation.
To better understand this, let's consider an example: Suppose a charitable institution received a donation of Rs. 1 Lakh in August 2022. Accordingly, this institution must file Form 10BD with the Income Tax Department and issue Form 10BE on or before May 31, 2023. When you subsequently file your Income Tax Return for FY 2022-23, you must include all relevant details from the donation certificate.
Failure to issue Form 10BE within the stipulated time frame can result in substantial penalties for the charitable institution. Under Section 234G, a penalty of Rs. 200 per day of delay is applicable.
Filing Form 10BD for the Issuance of Form 10BE
Under the new provision, it is mandatory for the donee (charitable institution) to submit Form 10BD and subsequently issue Form 10BE. Here's a step-by-step guide for filing Form 10BD:
- Navigate to the "e-file" tab and select "File Income Tax Forms."
- Choose "Form 10BD" and provide the requisite details in sections such as "Basic Information," "Details of the Donor and Donations," and "Verification."
- After entering the necessary details, save the file in CSV format and proceed by clicking the "Preview" option.
- Complete the e-verification process and submit the form.
Once you have successfully submitted Form 10BD, you can easily obtain Form 10BE.
How to Download Form 10BE from the Income Tax Website
Downloading Form 10BE is a straightforward process and can be done hassle-free through the official Income Tax Department website. Here's a step-by-step guide:
- Visit the official Income Tax Department portal and log in with your valid credentials.
- Under the "e-file" tab, select "Income Tax Forms."
- From the drop-down menu, choose "View filed forms."
- A new page will display all the forms filed to date.
- Click on the "View all" option under the Form 10BD tab.
- Finally, after 24 hours of filing Form 10BD online, you can click on "Download 10BE PDF" to obtain the certificate.
Final Thoughts
From the information provided above, it is evident that claiming deductions under Section 80G for donations during a financial year is contingent on the charitable institution issuing Form 10BE. As per the new regulations, after filing Form 10BD, obtaining a donation certificate or Form 10BE is imperative for claiming deductions.