paragraph

The measures to avail of tax deduction on donations made to eligible charities and trusts have changed from the financial year 2022-23. This is different from how donors applied for tax deductions by just providing the donation receipt(s) from the recipient organization(s) as proof.

The changes in rules mandate the donor to provide Form 10BE that must be obtained from the donee organization before May 31 of that year. This rule was introduced to induce transparency regarding the claim of donations made to avail of the deduction benefit. Before this, the government had no way to check the truthfulness of the details submitted by the donor. The Central Board of Direct Taxes came out with a notification in March 2021 requiring the recipient organizations to file Form 10BD with details regarding the donations made by the donors.&nbsp;

The details that must be filled in Form 10 BD include:

<ul><li style="text-align:justify;">Statement Number</li><li style="text-align:justify;">Pre-acknowledgement number</li><li style="text-align:justify;">Donor’s ID</li><li style="text-align:justify;">Unique Identification Number (PAN/Aadhar Card/Passport/Driving License)</li><li style="text-align:justify;">Section codes– 80G, 35(1)(ii), 35(1) (iia), 35(1)(iii)</li><li style="text-align:justify;">Unique Registration Number and Date of Issue</li><li style="text-align:justify;">Name of the donor</li><li style="text-align:justify;">Address of the donor</li><li style="text-align:justify;">Donation type (corpus, specific, restricted grant or others)</li><li style="text-align:justify;">Mode of receipt</li><li style="text-align:justify;">Amount</li></ul>Once the Form 10BD is filled, a certificate in Form 10BE would be obtained in the Income Tax portal that must be shared with the donor(s) on or before May 31 following the financial year in which the donations have been made. In case of delay in filing the Form 10BD, a late fee of ₹200 per day is levied under Section 234G of the Act. However, the late fee must not be more than the amount donated for which there has been a delay in filing the form 10BD.&nbsp;

The institutions and funds that would now be compliant with the amendments include any research association, university, college or other institution or company or fund under Clause (viii) of sub-section (5) of section 80G and clause (i) to sub-section (1A) of section 35 of the Income Tax Act, 1961.&nbsp;

Introducing the new compliance rules regarding donations via Form 10BD/Form 10BE is an important step taken as the details of the donations can now be viewed in Form No. 26 AS and in compliance with the Income Tax portal, thus, ringing in more transparency.&nbsp;

Donors must submit Form 10BE before May 31 to avail of tax deduction under Section 80G

Income Tax rules now mandate the submission of Form 10BE by donor organizations before May 31 to avail of tax deductions.&nbsp;

5 financial decisions 40-year-olds should make for a better future

15 life insurance terms you should know 

With 15.39% returns in 5 years, Templeton India Equity Income Fund tops its category; Should you invest?

SEBI’s new rules will help retail investors, says Siddharth Srivastava of Mirae Asset MF

3 mistakes to avoid while dealing with your emergency corpus

Sebi seeks details on investor rights from angel funds: Report

Centre’s donate-a-pension initiative fails to garner good response

Government to clear air on taxing NFT as digital assets: Report

How do you decide when to exit your equity investments?

Sensex rises almost 1300 points this week despite headwinds; what is underpinning market sentiment?

<ul><li>The fall in crude oil and other commodity prices seems to have boosted the mood of the market. Besides, RBI's efforts to arrest the fall of the rupee and improvement in macroeconomic indicators are also supporting the market.</li></ul>

Bitcoin holds steady over $20,000; Ethereum and other altcoins in green

The world's largest cryptocurrency, was up on the day slightly 1.21 percent, trading at $20,400 while Ether rose 3.17 percent to 1,174 over the previous day.

Valuations of Asian stocks hit lowest since March 2020

The MSCI Asia-Pacific index's forward 12-month price-to-earnings ratio (P/E) stood at 12.1 at the end of last month, which was the region's cheapest valuation since March 2020, Refinitiv data showed.

TCS Q1 Results: Analysts expect mixed numbers; impact of macro headwinds key

<ul><li>Owing to a sharp rise in inflation and rate hikes, the risk of a recession has increased and most brokerage firms and analysts believe IT companies may see their demand scenario shrinking.</li></ul>

New Investor? Learn what are flag chart patterns and how to trade with them

A popular technical analysis tool, flag patterns are formed by price action contained within a narrow rectangle-shaped or a flag-shaped channel. To learn more about it, keep reading.