Form 10BE

What Is Form 10BE?

Form 10BE is a document that confirms your donation to a registered Trust or Institution. When you donate to such organizations you can claim a deduction under Section 80G of the tax code. After the trust or institution submits Form 10BD or a statement of donations they are required to provide you with Form 10BE income tax. This form acts as proof that you made a donation and allows you to validate your deduction claim when you file your taxes. It helps the government ensure that the donations reported by charitable institutions match the deductions claimed by taxpayers. So, Form 10BE income tax is essential for both you as a donor and for the government to ensure everything is correctly accounted for.

Who Needs To File Form 10BE?

If you've made donations to trusts or institutions that qualify for tax benefits under Section 80G, there's a new requirement starting from the financial year 2022-23. Instead of just providing a receipt from the organization you donated to now you need to obtain Form 10BE from them. This form should be collected from the recipient organization before May 31 each year.

Reason for this change is that Section 80G has been amended. Now, approved organizations must submit Form 10BD to the Income Tax Department. This process helps ensure transparency and accountability in how tax exempt donations are managed and reported. So, as a donor, you'll need to make sure you receive Form 10BE from the organization you donated to in order to claim tax benefits under Section 80G.

Form 10BE Due Date

When a charitable institution receives a donation they need to issue a 10BE donation certificate called Form 10BE to the donor. This form should be issued by May 31st of the financial year following the year in which the donation was received.

If someone donates Rs 1 Lakh in August 2023 the charitable institution must issue Form 10BE by May 31, 2024. This certificate is crucial because when the donor files their Income Tax Return for the financial year 2023-2024, they need to include details of this donation certificate.

If the charitable institution fails to issue Form 10BE donation certificate  on time they could face penalties. Penalty amount specified in Section 234G is Rs. 200 for each day of delay.

Therefore, it's important for charitable institutions to timely issue Form 10BE after receiving donations to avoid penalties and ensure donors can correctly file their taxes.

What Information Is Required To Complete Form 10BE?

This certificate contains all necessary details about the charitable institution and the donor including

• PAN of the charitable trust
• Name & address of the charitable trust
• Name & address of the donor
• Date of approval of the trust
• An individual's unique identification number such as Aadhaar or PAN along with the donor's name.
• Financial year of the donation
• Type of donation whether it's for the corpus, specific grants or other purposes
• Section under which the donor qualifies for deduction such as Section 80G or Section 35
• Total amount donated

How To Download Form 10BE From Income Tax Site?

1. Go to the official Income Tax Department website and log in.
2. Look for the efile section and click on Income tax forms.
3. Choose View filed forms from the dropdown menu.
4. You'll see a page with all your filed forms.
5. Find Form 10BD section and click View all.
6. After 24 hours of filing, you can click to download the Form 10BE certificate as a PDF.

Exemptions Or Exceptions For Filing Form 10BE

Form 10BE allows the Central Government to verify that the donations received by various charitable institutions align with the deduction claims made by taxpayers under Section 80G. It serves as crucial evidence to validate these deductions. After submitting Form 10BD or a statement of donations, the charitable institution must provide Form 10BE, a certificate of donation, to the donor. This certificate confirms the donation made and facilitates the taxpayer in claiming the eligible deduction under the tax laws.

Consequences Of Not Filing Form 10BE On Time

Failure to issue the donation certification in Form 10BE can attract a hefty penalty for the recipient institutions. Under Section 234G of the Income Tax Act, a penalty of Rs 200 per day of delay will be imposed. This penalty is imposed on the institution for each day the certification is not issued after the due date specified under the law.

Conclusion

If you want to claim a deduction on donations you made to a charitable institution during a financial year, you need to make sure the institution gives you Form 10BE. According to the new rules, after submitting Form 10BD you must get this certification Form 10BE to be able to claim your deduction.