Form 10BE is a certificate issued by trusts, NGOs, and other charitable institutions registered under Section 80G or Section 35 of the Income Tax Act. This certificate is provided to donors so they can claim tax deductions on their donations. It serves as formal proof that the donation was made to an eligible entity.
In this blog, we will discuss who is required to furnish Form 10BE, the due dates for submissions, and the process by which it can be downloaded from the official website of the income tax portal online.
Introduction
Charitable giving is encouraged under Indian tax laws, with provisions like Section 80G allowing donors to claim deductions for donations made to eligible institutions. But to validate this claim, the recipient organisation must issue a certificate of donation, and that is where Form 10BE comes in.
Form 10BE replaces the traditional manual certificates or receipts with a standardized format notified by the Income Tax Department. It ensures that the donor has all the necessary details for claiming tax benefits, and also improves transparency and tracking for the department.
What is Form 10BE?
Form 10BE is a system-generated certificate issued by institutions registered under Section 80G or Section 35 of the Income Tax Act. It is given to every donor and contains –
- Name and PAN of the donor
- Amount of donation
- Mode of payment (cash, cheque, online, etc.)
- Unique Donation Reference Number
- Section under which deduction is claimed (80G or 35)
- Name, PAN, and details of the recipient institution
It serves as valid documentary proof for donors to claim tax deductions on donations when filing their Income Tax Return (ITR).
Applicability of Form 10BE
Form 10BE is mandatory for all.
- Charitable trusts and NGOs registered under Section 80G
- Research associations or institutions under Section 35(1)(ii)/(iii)
- Universities, colleges, or companies conducting scientific research are eligible for tax exemption
These organisations must be –
- Registered on the Income Tax portal
- Holding a valid approval under the respective section
- Filing Form 10BD (statement of donations) before issuing Form 10BE
Only those who comply with these rules can issue Form 10BE.
Who Should Issue Form 10BE?
The following entities are responsible for issuing Form 10BE –
- NGOs with valid 80G approval
- Research organizations with Section 35 approval
- Charitable institutions receiving donations for specified projects
The certificate must be issued to every donor, regardless of the donation amount, provided it qualifies under the applicable section for deduction.
Due Date for Issuing Form 10BE
The due date for issuing Form 10BE is 31st May of the following financial year.
For example –
- For donations received during FY 2023-24 (April 1, 2023, to March 31, 2024),
- Form 10BE must be issued to donors on or before 31st May 2024.
Delays in issuing Form 10BE or filing the relevant Form 10BD may result in penalties under the Income Tax Act; therefore, it is important to adhere to deadlines.
Relation Between Form 10BE and Form 10BD
Before issuing Form 10BE, the organization must first file Form 10BD. This is a statement of donations submitted to the Income Tax Department listing –
- Details of each donor
- Amount donated
- Mode of donation
- Section under which it qualifies
Once Form 10BD is filed and processed, the department allows the generation of Form 10BE certificates for each donor from the portal.
How to Download Form 10BE Online
Here is the step-by-step guide to downloading Form 10BE from the income tax e-filing portal –
Step 1. Visit the Income Tax Portal
Firstly, visit the official website of the Income Tax https://www.incometax.gov.in.
Step 2. Log In as the Institution
You have to use the PAN and password of the institution/NGO to log in.
Step 3. Go to ‘e-File’ → ‘Income Tax Forms’ → ‘File Income Tax Forms’
You have to navigate through the menu to select Form 10BE under the appropriate category.
Step 4. File and Validate Form 10BD (if not already done)
If you have not already submitted Form 10BD for the year, do that first. Only then will the option to generate 10BE become available.
Step 5. Download Form 10BE Certificates
After Form 10BD is submitted and processed –
- Go to “e-File” → “View Filed Forms”
- Look for Form 10BE option under your filed 10BD
- Click on “Download Certificate” for each donor
Each downloaded Form 10BE will be in PDF format and will contain the unique certificate number along with digital verification.
What If You do not issue Form 10BE?
Failing to issue Form 10BE on time can lead to:
- Rejection of the donor’s tax deduction claim
- Penalty under Section 271K of the Income Tax Act – up to Rs 1 lakh
- Potential cancellation of 80G approval if non-compliance continues
Hence, it is both a compliance necessity and a donor service obligation.
Best Practices for Institutions
- Maintain a donor database with PAN, address, and donation mode
- Keep donation receipts and transaction records updated
- File Form 10BD well before the deadline
- Cross-check details before generating Form 10BE
- Send a copy of Form 10BE via email or a physical copy to donors as confirmation
Conclusion
Form 10BE is significant because it is a mechanism for transparency, accountability and tax benefits with respect to charitable contributions. To the donor, it gives the essential proof to claim any deduction provided under section 80G or 35. The form’s completion by the institutions will be a compliance requirement that will build up trust and credibility.
Once charitable organisations have a background on when Form 10BE is applicable to them, when it is due, and have downloaded any previous years’ (form)105E corrections, they can manage their compliance comfortably and continue to execute their mandate with no issues for the donor or themselves.
References
