The Institute of Chartered Accountants of India (ICAI) has issued a Handbook on Statement of donations received in order to provide quick guidance on this matter, and to elaborate the recent changes made in this regard to the members, this publication/write up would prove to be very useful. It covers the relevant provisions, the forms, requirements of furnishing, certain issues that may be faced and the like. We hope, it would enable the members to better understand the said provisions.
Specified assessees receiving donations and registered under the relevant provisions of Income-tax law and claiming exemptions are now required to make one additional compliance. Such donees are now required to furnish details of donors in the specified format (Form 10BD) and there are penal provisions for not furnishing such details by the specified timeline.
Charitable trusts and other similar assesses receives a lot of donations. Donors on the basis of donations made claim deduction under specific provisions of the Income-tax Act, 1961. Earlier there was no mechanism to cross check whether donation are actually made by the donor to specified donee. In order to prevent leakage of revenue, the Hon’ble Finance Minister proposed for a statement to be furnished by the recipient trust and the like assesees (in Form No. 10BD) detailing therein the details of donors and thereafter generation of certificate in the Form 10BE.
As per current rules, the said statement is to be furnished by 31st May following the Financial Year. Since it’s a first time compliance, a need is being felt for providing relevant guidance at one place to make the said compliance easier for the concerned assesses.
“Accordingly, this write up provides a quick guidance from DTC of the ICAI on this subject of furnishing of Form No. 10BD and issuing Form No. 10BE,” the preface of the handbook stated.
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