Responsibilities of an NGO on receipt of Donations

Till FY 2020-21, all donors who gave donations to NGOs, could claim tax benefit under section 80G on the basis of self declaration and attachment of a receipt issued by the NGOs receiving donations. The receipts normally have details of the donor and IT Order reference under which the NGOs had received registration under S.80G. This was open to misuse. Hence effective FY 2021-22, the Tax Dept requires that the NGO should upload details of all donations on IT website in a prescribed format (Form BD). Then NGOs would download the certificates of donations (Form BE) for each donor from IT website itself. In this blog, requirements as well as the deadlines are summarized.

Form 10BE:  This is the format of certificate now prescribed under new Rule 18AB, which every NGO, who receives donation under Section 80G(5)(ix) and Section 35(1A)(ii),  must issue to every donor after downloading from the IT website.

The donation certificate should identify the NGO through its PAN No. and also give the Order No. and the date under which the NGO has been granted approval for S.80G or S.35 registration. Please note this number should be the same as recently issued by the Dept for approval of S.80G registration. This facilitates the identification of the NGO who is issuing this certificate. The certificate apart from giving the name, address of the donor, amount and type of donation, would also disclose any of the following details

• PAN No. or Adhar No.
• In case donor does not possess any of the above details, then s/he can give any of the following ID (Passport No. / Election Id / Driving License No./ Ration Card No.) or any other other Id as disclosed by the donor at the time of giving donation.
• No S.80G deduction is allowed, if donation is in cash and above Rs 2000/-.

The certificates are required to be given to each donor by 31^st May 2022.

Form 10BD: This is a return thatan NGO has to file once a year. For FY 2021-22, the NGO would have already received the donations, it should have already collected all necessary information as mentioned above. This should be now filled in Form BD before the last date. It may be noted that a person can revise this Form, if details filled are subsequently found to be incorrect or require revision for any reason. For FY 2021-22, last date for filing the return is 31^st May 2022 (being 60 days after year-end). The purpose of this return is to understand total donations rec’d by an NGO, it also brings transparency and better control in claims made by donors.

It may be noted, that in case an NGO is not being able to comply with the above requirements, any tax deduction that a person may receive otherwise, may not be available.

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Socio Research & Reform Foundation (NPO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008.