When filing a statement of donations in Form 10BD, it is crucial for NGOs to issue certificates of donation in Form 10BE to fulfil compliance requirements. The certificate, downloaded from the Income-tax e-filing portal, specifies the amount of donation received during the year. These certificates must be issued to the donor by May 31 of the subsequent financial year. Donors can claim deductions under Section 80G based on the certificate in Form 10BE.
NGOs that have not received any donations during the year are exempt from filing Form 10BD. In such cases, there is no need to upload a blank CSV file if there are no transactions to report.
To accommodate more than 25,000 records, NGOs can file multiple original Form 10BDs for the same financial year. However, when filing additional Form 10BDs, it is crucial to report only the new entries without duplicating entries from previously filed forms. For example, if an initial Form 10BD is filed with 100 entries and you need to report 10 additional entries, file another original Form 10BD with only the new 10 entries.
In case of mistakes or the need for updates in the information provided in Form 10BD, NGOs have the option to submit a correction statement. This allows for rectifying inadvertent duplicate reporting or making necessary corrections. By filing a revised Form 10BD, NGOs can remove duplicate entries and ensure accurate reporting.
Donations received for different purposes should be appropriately segregated and reported. NGOs must categorise each donation based on its purpose, such as corpus, specific grant, or others. This ensures accurate reporting and transparency in financial operations.
When a single person makes multiple donations of the same kind during a financial year, NGOs should consider all these donations collectively. In cases where a donation is recorded in the name of multiple people without specifying any specific proportion, the reporting person should distribute the value of the donation equally among all the donors.
Form 10BD must be submitted electronically on the income tax department's e-filing portal. If the income tax return is required to be submitted under a Digital Signature Certificate (DSC), Form 10BD should also be submitted using a DSC. In other cases, an electronic verification code (EVC) can be used for submission. The authorised person responsible for verifying the income tax return should also verify Form 10BD as applicable under section 140.
Filing statements of donations in Form 10BD is a crucial compliance requirement for NGOs approved under Section 80G. By ensuring the timely submission of Form 10BD and issuing certificates of donation in Form 10BE, NGOs enable donors to claim deductions and maintain transparency in their financial operations. Adhering to the mentioned considerations, such as accurate reporting, proper documentation, and timely submission, NGOs can fulfil Form 10BD guidelines, facilitate smooth donor deductions, and avoid potential penalties or fees.