In light of recent changes in the Income Tax provisions relating to compliance by charitable religious trusts/institutions, the ICAI has issued a new publication, ‘Handbook on Statement of Donations Received (May 2022 Edition).’
In respect of FY 2021-22, such trusts/institutions must provide a ‘Statement of Donations Received (Form 10BD)’ and generate a ‘Certificate of Donations (Form 10BE)’ by 31/05/2022.
Given that this is a first-time compliance, this ICAI publication will assist members and other stakeholders in better understanding the provision of new Form 10BD and issuance of Form 10BE in a hassle-free and timely manner.
It may be noted that specified assessees (Charitable trusts and other similar assesses) those who are receiving a lot of donations and are registered under Income-tax law for claiming exemptions are now required to furnish details of donors in Form 10BD and to issue Donation certificate in Form 10BE in a timely manner to avoid penal provisions for delayed/ non compliance. In turn Donors will also be able to claim respective deduction for donation under relevant Income Tax provisions.
This new mechanism ensures cross checking of the fact whether donation are actually made by the donor to the specified donee to prevent leakage of tax revenue, as the amended Income tax provisions mandates submission of a detailed statement of the donors/ donations by the recipient (Charitable Trusts, etc.) in Form 10BD followed with generation and issuance of certificate in Form 10BE to the donee in due course.
As per new Income tax rules, the statement of donations in Form 10BD is required to be furnished by 31st May following the relevant Financial Year (i.e. 31/05/2022 in respect of FY 2021-22).
ICAI’s Handbook on Statement of Donations Received (May 2022 Edition)
ICAI’s Technical Guide on Audit of Charitable Institutions u/s 12A (2022 Edition)