Ensure donations claimed in ITR match with Form 10BE

Starting from the financial year 2022-23 (FY23), when you make donations to eligible trusts or institutions eligible for tax benefits under Section 80G, it’s important to get Form 10BE from them. Unlike before when a receipt sufficed, now you must ensure you have this form, obtained from the recipient organization, by May 31st.

Let’s understand the Section 80G and Form 10BE

Section 80G of the Income Tax Act in India allows taxpayers to claim deductions on the donations made to eligible qualified trusts or institutions and funds. The purpose of this section is to incentivize philanthropy and support organizations engaged in social or economic development activities.

With Form 10BE, the Central Government can ensure that the donation received by different charitable institutions matches the taxpayer’s deduction claims. This Form 10BE is proof of evidence to validate the deduction claimed under Section 80G. After filing Form 10BD or a statement of donations, the donee institution must download and issue this certificate of donation (Form 10BE) to the donor.

Donors need to ensure that the donation amount they claim under Section 80G of the Income Tax Act matches the total donations listed in Form 10BE provided by the respective charities for the relevant period.

Take this matter seriously: If there’s a mismatch between the deduction claimed under Section 80G in your Income Tax Return (ITR) and Form 10BE issued by the charitable institutions, tax authorities may initiate scrutiny proceedings.

Ensure you have proper documentation and proofs to support the total donations claimed in your ITRs.

Enter the information from Form 10BE into the specified fields in Schedule 80G, including the institution’s name, registration number, and donation amount.

For your records and documentation, keep copies of donation receipts (Form 10BE) and relevant documents like bank statements for at least four years after filing your return for claiming deductions under Section 80G.