Thanks for providing information on 80G donations which is really helpful. I have following further queries:
1. Do we need to report all the donations and grants i.e. FCRA and Local or only Local?
2. If FCRA also then what do we need to provide in the unique identification number specially foreign corporate/companies registered outside India?
3. If any donor is an Indian and he/she doesn’t provide his/her PAN or Aaahaar as they don’t want to claim any 80G benefit then how to deal with it or we don’t need to file the same in the statement of return?
Regards
Chander Shekhar
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Dear Member
Please find below link to access Hand Book on filing of Form 10BD
Handbook on Statement of Donations Received
SRRF,
In one case date of 80G approval stated in Form 10AC at sr. no. 7 is 01-10-2021. The approval is the period from AY 2022-23 to AY 2026-27. In form 10BD date of issuance of URN has to be stated in DD/MMM/YYYY format without any special characters, alphabets etc. Which date has to be stated in Form 10BD 01-10-2021 or 01-04-2021 and how – 01/010/2021 or 01/OCT/2021 ? Can any body clarify ? Tried with both options but error message says “Date of issuance of URN is invalid”. Regards
Ajit Naik
You are right it should be Date of Issuance of URN, which in your case as stated by you is 1st Oct 2021. The format of the date as per Instructions to fill the 10BD CSV format is MM-DD-YYYY. Thus it should be 10-01-2021.
Questions regarding online Form 10BD, which was recently made available on Income Tax e-fling website, which are as follows:
1. It is mentioned in Part B under Notes that Form 10BD is allowed to be filed multiple times for the same financial year. Also maximum number of rows that can be added in a CSV file is 25,000 and for more records, we can file another Form 10BD.
Question: We have large number of donors, and need time to prepare the reports. Can we file multiple Form 10BD on different dates. Say first Form 10BD on May 20th and second Form 10BD on May 25th and so forth?
2. While filing Original Form 10BD, if we miss entering some donations and want to add more rows:
a) Are we allowed to file additional Form 10BD or Can we add more rows in Form Type ‘Revised’?
b) If we can add more rows in Form Type ‘Revised’ then:
In the Instructions for filling CSV template.pdf, the last Field is Revise / Delete (Applicable if Form Type is “Revised”) and the selection from Dropdown list is “Revise / Delete” There is no “Additional”, so what should we select, if we have to add more rows in this?
3. In the Field for Address of the Donor, is there any restriction for using Special Characters like: – _ & ! ^ # ~ % *
4. Field for ID Code: The instructions mention to Select ID Code from the Dropdown which gives options of:
Permanent Account Number
Aadhaar Number
Tax Identification Number
Passport Number
etc…
The length of Character for this mentions: Refer Annexure-1, which mentions the following:
ID Code
01-Permanent Account Number
02-Aadhaar Number
03-Tax Identification Number
04-Passport Number
etc…
Our Question: As we are preparing voluminous data, we are generating this report from our database. We need to know, the exact words to use for this field:
Permanent Account Number or 01-Permanent Account Number
Aadhaar Number or 02-Aadhaar Number
Tax Identification Number or 03-Tax Identification Number
And so on and so forth for other options.
Similarly for other Fields
For Section Code: Section 80G or a) Section 80G
For Donation Type: Corpus or a) Corpus
For Mode of Receipt: Cash or a) Cash
5. Mode of Receipt: There are 4 Modes: Cash; Kind; Electronic modes including account payee cheque / draft; and, Others.
Our query is for the option of Kind
This refers to Donation in Kind. As these donations are not 80G deductible, we do not issue any receipt to the donors. Our Accounting Policy, is to record these donations at a nominal value of Rs 100. We debit the Asset ledger with Rs 100 and credit the Capital with Rs 100, meaning we do not take this to Income and Expenditure Account.
Questions:
a) Should we mention these donations here in Form 10BD under the Mode of Receipt as Kind?
b) If yes, is it okay to mention the Amount of Donation as Rs 100?
My comments are given in seriatum
Q1 : Yes Form 10BD can be filed multiple times. It is very clearly mentioned under instructions.
Q2 : Yes Form can be revised for changing any data, adding additional donors, etc.
Q3 : Need to be tried and found out, we have not tried this.
Q4 : Avoid Nos. should be same as in the Sort Drop Menu.
Q5 : Since no S.80G benefit is available to the donor, in such scenarios there is no use of issuing 80G receipt. Form 10BD is mainly for 80G receipts, hence you may not consider filling Form 10BD for the same, however if you decide to do it please ensure no S.80G benefit is taken by the donor.
Thank you sir for all the valuable information and clarifications you are providing in tis forum. It’s really very helpful to the NGOs.
Sir I have query regarding the above topic. Our NGO (a sec.8 co.) got the 80G approval (provision 3 years) on 14th October 2021.
Regarding form 10BD do we
1) have to fill details only of Donors/donation from 14th Oct.2021 till 31st March 22
or
2) for the full FY 2021-22 i.e. from 1st April’21 till 31st March 22.
Please guide.
Regards,
Vikram
It depends upon exactly the period for which your 80G approval is applicable, i.e. 14-10-2021 to 31-3-2022 or for entire FY 2021-22. Generally approvals are for entire Financial Year. Please check the 80G approval.
Sir it has the following coloumn (exact wordings)
Assessment year or years for which the trust or
institution is provisionally approved – “From 14-10-2021 to AY 2024-2025”
Regards,
Vikram
OK, then it is quite clear and claim it from the date S.80G is valid from.
Thanks a lot for the clarity Sir. Your help means a lot.
Sir/ Madam.
whether Foreign Donations (FCRA) need to be reported in Form 10BD (Income Tax) ?
Not required, unless FCRA donor wants to claim S.80G benefit also.
1. Basic intention of Income Tax Dept is that a claim for S.80G or S.35 should not be fake and for this purpose, it wants all claims for tax rebate to be auto-populated or at least re-confirmed from the Income Tax website, just like one can claim only those TDS deductions which are shown under one’s 26AS Form. The Dept wants to create a similar system for tax rebates under donations. Thus anyone who does not wish to claim such benefits may argue that he need not give details as required under Form 10BD/1-BE, however there are certain downsides to this (see below). It is not necessary to disclose FCRA donations where the donor does not need to claim tax rebate.
2. Though an NGO may want to claim all grants as donations (so that risk of IT Dept not treating it as some form of commercial income). Under such a scenario, one could even disclose FCRA grants as donations. To do the same, one will need to provide PAN Card No. or Aadhar No. of the donor. Considering FCRA donors are not likely to have either of such IDs, you could give any one of the following IDs.
• Taxpayer ID of the country in which the donor resides.
• Passport No.
• Elector’s Photo Id No.
• Driving License No.
• Ration Card.
It seems above ‘Id’ details are likely to relate to individuals, rather than institutions, therefore most likely for institutional donors, one may not be able to give any Id, and hence would not fill up Form 10BD. Once again I reiterate, FCRA donations per se are not required to be disclosed in Form 10BD, but may be done so, if the NGO prefers it, but then it has to disclosed any one of the above ID detail in the Form 10BD.
3. As mentioned above, if a donation is rec’d from an Indian person, the NGO should fill Form 10BD, giving either PAN No. or Aadhar No. In case the donor does not want tax benefit and hence is not interested in providing either of these details. Then risk is that Income Tax office may treat this as anonymous donation under S.115BBC and tax the NGO at a flat rate of 30%. Although anonymous donations of Rs 1 lakh or 5% of aggregate donation, whichever is higher, are exempt from taxation.