Form 10BD & 10BE: Complete Filing Guide for NGOs and Institutions
Published by: cmaknowledge.in | Updated: July 2025
Introduction
With increasing emphasis on accountability and transparency in the not-for-profit sector, the Income Tax Department of India introduced mandatory filing requirements under Form 10BD and Form 10BE. These forms were brought into effect via the Finance Act 2021, aligning donation reporting with the central database to ensure that only genuine and compliant donations are eligible for tax deductions.
NGOs and other eligible institutions claiming benefits under Section 80G and Section 35 must submit Form 10BD to report donations received and issue Form 10BE as a certificate to donors. This guide explores everything—legal foundation, data requirements, filing steps, penalties, and FAQs—in approximately 4000 words, helping you maintain 100% compliance.
Legal Framework Behind Form 10BD & 10BE
Form 10BD was introduced through the Finance Act 2021 under the Income Tax Rules to ensure donors claiming deductions under 80G or 35 are matched with recipient institutions’ records. Earlier, donors could simply claim deductions without any robust trail from the receiving organizations. This created room for misuse and duplicate claims.
Now, with Form 10BD, all qualifying institutions must declare details of every donation received in a structured electronic format. Form 10BE is the system-generated certificate for donors based on this data.
Relevant Legal Sections
- Section 80G: Donations to charitable trusts, relief funds, religious organizations
- Section 35(1)(ii)/(iii): Contributions towards scientific research, rural development programs
- Rule 18AB: Empowers CBDT to enforce reporting under 10BD
Who Must File Form 10BD?
The filing requirement applies to any institution that has approval to offer 80G or 35 tax deduction benefits to its donors. These include:
- Charitable trusts and NGOs registered under Section 12AB
- Scientific and industrial research organizations (SIROs)
- Educational institutions approved under Section 10(23C)
- Companies running CSR initiatives offering deduction-eligible donations
If your institution receives donations from individuals, companies, or government bodies that may claim tax deductions, then Form 10BD is mandatory.
Information Required in Form 10BD
Each donation entry in Form 10BD must be reported with full clarity and in the exact prescribed format. The following fields are mandatory:
| Field | Description |
|---|---|
| Name of Donor | Legal name as per PAN or Aadhaar |
| Unique Identification | PAN or Aadhaar (mandatory) |
| Donation Amount | As received, not pledged |
| Date of Donation | Exact transaction date |
| Mode of Payment | Cash/Cheque/Online/NEFT/UPI, etc. |
| Section Code | Whether donation is under 80G or 35 |
Keeping accurate, centralized donation logs in digital format is strongly recommended.
Step-by-Step Guide to File Form 10BD
- Login to the Income Tax e-Filing Portal using your institution’s PAN credentials.
- Navigate to: e-File > Income Tax Forms > File Income Tax Forms
- Select Form 10BD and choose the correct assessment year
- Use the offline Excel utility to fill in all donation details (or enter manually)
- Upload the file and validate for errors
- Authenticate with DSC or EVC
- Submit and save the Acknowledgment Receipt
Ensure the utility file format is up to date as per the portal. Even small errors like extra spaces or wrong formats will cause rejection.
Form 10BE: Issuing Certificates to Donors
Once Form 10BD is filed and accepted by the department, the system allows you to generate Form 10BE for each donor. It includes a unique certificate number and donor details. This certificate is mandatory for donors to claim deductions.
Details on Form 10BE
- Institution PAN and approval number
- Donor Name and PAN
- Donation amount and payment mode
- Unique Certificate Number (auto-generated)
Form 10BE must be issued to donors on or before July 31 following the end of the financial year.
Case Study: Akshay Arogya Foundation
Akshay Arogya Foundation, an NGO operating in Maharashtra, received ₹95 lakh from over 1600 donors in FY 2023–24. In its first year of compliance, the NGO faced challenges like inconsistent donor details, missing PANs, and lack of reconciliation with bank deposits. After consultation with a tax expert, the NGO:
- Digitized donation records via CRM tools
- Trained staff in Excel-based utility filling
- Filed Form 10BD a month before the deadline
- Issued Form 10BE via bulk download
As a result, donor satisfaction increased, corporate donors were able to claim CSR deductions, and the NGO received accolades for compliance.
Penalties for Non-Compliance
Failing to file Form 10BD or issue Form 10BE invites strict penalties:
- Late Filing (Sec 234G): ₹200 per day of delay
- Failure to Issue Certificate (Sec 271K): ₹10,000 to ₹1,00,000
- Possible cancellation of 80G registration for repeat violations
NGOs should mark deadlines on internal compliance calendars and review past year performance for gaps.
Best Practices for NGOs
- Collect PAN/Aadhaar at the time of donation
- Send automated donation receipts with unique reference numbers
- Maintain donation logs in Google Sheets or Tally with backup
- Review donation trends monthly for anomalies
- Conduct internal audit every March before filing 10BD
FAQs on Form 10BD/10BE
Q1. Is Form 10BD required even for ₹100 donations?
Yes, if the donor wants to claim a tax deduction and provides PAN/Aadhaar.
Q2. Can we revise Form 10BD?
Yes, multiple revisions are allowed before the due date (May 31).
Q3. Can I use Aadhaar if PAN is not available?
Yes, Aadhaar is an accepted alternative.
Q4. How can I generate Form 10BE in bulk?
Use the ‘Generate Certificate’ option from the Income Tax portal dashboard after Form 10BD is processed.
Q5. What if a donation was made in cash?
Cash donations above ₹2,000 are not eligible for deduction. Report them, but the donor can’t claim benefit.
Conclusion
Filing Form 10BD and issuing Form 10BE are now integral to the functioning of compliant, credible institutions in India. By maintaining accurate records, preparing data early, and issuing timely certificates, NGOs can not only avoid penalties but also enhance donor trust and credibility. This guide serves as a definitive resource for your team to stay ahead of compliance in FY 2025–26 and beyond.