Donor Compliance Made Easy: How to File Form 10BD for 80G Donations

For over a decade, Drishti Foundation Trust has been a steadfast force in driving transformative change across India and beyond. Recognized globally for its efforts in health, education, environmental protection, and disaster resilience, the Trust holds Special Consultative Status with the Economic and Social Council (ECOSOC) of the United Nations since 2017 and is also accredited by the United Nations Environment Programme (UNEP). Our ongoing work in areas like river rejuvenation, ocean cleaning, water conservation, pond restoration, wildlife protection, tree plantation, and biodiversity conservation has earned the trust and support of thousands of donors. As an organisation with Section 80G certification, we are eligible to receive tax-deductible donations from individuals and corporates. However, with this privilege comes the important responsibility of maintaining transparency and adhering to statutory compliance. One such requirement is the filing of Form 10BD, an annual statement of donations submitted to the Income Tax Department of India.

Form 10BD was introduced by the Central Board of Direct Taxes (CBDT) through a notification in 2021, with the aim of standardizing and digitizing the record-keeping of donations for organizations eligible under Section 80G or Section 35(1) of the Income Tax Act. Any trust or institution holding a valid 80G certificate is required to file this form each financial year, listing out details of donations received from individual and corporate donors. This helps the Income Tax Department cross-check claims made by donors for deductions and ensures that charitable institutions maintain transparency in their financial dealings. Organizations that are only registered under Section 12A or 12AB but do not have 80G approval are not required to submit this form.

The deadline for filing Form 10BD is May 31 following the end of the financial year. For instance, donations received in the financial year from April 1, 2023, to March 31, 2024, must be reported in Form 10BD on or before May 31, 2024. Failing to file within the prescribed timeline can attract significant penalties. The Income Tax Department imposes a late fee of ₹200 per day under Section 234G, and additional penalties ranging from ₹10,000 to ₹1,00,000 under Section 271K. These penalties can pose a financial burden on nonprofit organizations and, more importantly, may affect the credibility of the organization in the eyes of donors and the government.

Form 10BD requires three main components to be completed. The first part involves verifying basic organizational information such as the name, PAN, registered address, and financial year, which is auto-populated on the portal. The second part is the most crucial and involves uploading a CSV file containing detailed information of each donor. This includes the donor’s name, type and number of identification document (PAN, Aadhaar, passport, etc.), address, donation amount, mode of payment, and the nature of the donation (such as corpus or specific). Each donation must be tagged with the correct section code—either 80G, 35(1)(ii), or other applicable codes—and should also mention whether the donation was in cash, kind, or digital payment. Notably, while cash donations above ₹2,000 are not eligible for deduction under Section 80G, they still need to be reported in Form 10BD. Similarly, donations in kind must be disclosed, although they are not tax-deductible. In cases of recurring donations from the same donor, the total donation amount may be consolidated, provided the payments share the same mode and section code.

The third and final component of Form 10BD is the verification section. This must be completed and digitally signed by an authorized person such as a trustee, director, or principal officer of the trust. Once the form is successfully filed, the system generates Form 10BE, which is a donation certificate that must be issued to donors. This certificate is crucial for donors to claim their tax deductions. Organizations can choose to pre-issue acknowledgments using Pre-Acknowledgement Reference Numbers (Pre-ARNs), which can be generated in advance through the e-filing portal. These Pre-ARNs can be assigned to donors when issuing manual receipts and later matched with the Form 10BD submission to ensure seamless reconciliation and certificate generation.

The process for filing Form 10BD involves logging into the Income Tax e-filing portal using the organization’s PAN credentials. Once logged in, the user must navigate to the ‘e-File’ section, select ‘Income Tax Forms’, and choose Form 10BD. After selecting the financial year and confirming whether the return is original or revised, the organization must verify the pre-filled basic information and proceed to upload the donor details in the prescribed CSV format. Once the upload is validated, the signatory must e-verify the form using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). Following a successful submission, the system will allow the organization to download Form 10BE certificates within 24 hours, which must be distributed to the respective donors.

One common question among nonprofits is whether they need to file Form 10BD if they did not receive any donations during the financial year. Currently, the portal does not accept nil returns for Form 10BD, so organizations with no donations are not required to file the form. However, those that did receive donations—even small or anonymous contributions—must carefully assess which ones qualify for reporting. Donations for which no PAN or Aadhaar is provided may be excluded from the filing, but excessive omissions may draw scrutiny during assessments or audits. It is also important to note that foreign contributions received under FCRA (Foreign Contribution Regulation Act) do not fall under the scope of 80G and therefore should not be reported in Form 10BD. Similarly, donations received as part of Corporate Social Responsibility (CSR) activities must be reported, especially if the donating company intends to claim deductions.

Form 10BD serves multiple purposes beyond compliance. It helps charitable institutions like Drishti Foundation Trust maintain a transparent and accountable record of financial inflows, enhances donor confidence, and aligns the organization with best practices in governance. Timely and accurate filing not only protects the organization from monetary penalties but also assures donors that their contributions are being managed responsibly. For those donors, the subsequent Form 10BE certificate is a necessary document to claim tax benefits under the Income Tax Act.

From an operational perspective, the filing of Form 10BD encourages nonprofits to maintain robust donor databases, accurately record payment methods, and systematically classify the types of donations received. This, in turn, supports long-term donor relationship management and strengthens audit-readiness. In today’s digital age, where accountability and impact are crucial indicators of a nonprofit’s reputation, the proper filing of Form 10BD is not just a legal requirement—it is a strategic necessity.

In conclusion, for any nonprofit organization operating in India with 80G certification, Form 10BD is a vital compliance document that must be filed annually to avoid legal penalties and to ensure that donors can claim the tax deductions they are entitled to. The deadline of May 31 each year provides sufficient time for organizations to gather necessary donor information, verify identities, consolidate donations, and file accurately through the Income Tax portal. At Drishti Foundation Trust, we consider this process an extension of our commitment to ethical governance and transparency. It reflects our dedication not just to our causes—whether that’s saving rivers, protecting wildlife, or empowering communities—but also to the people who support us.

By staying compliant and informed about evolving regulatory norms like Form 10BD, Drishti Foundation Trust continues to set high standards in the nonprofit sector. We urge all philanthropic organizations to prioritize this filing as a core responsibility, and to reach out for professional assistance if needed. Compliance strengthens credibility, and credibility amplifies impact.

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