Donations to charitable organizations and institutions are eligible for a number of deductions under the Indian tax system. Donors must receive Form 10BE, a critical document, from the donation-receiving organization in order to claim these deductions under Section 80G of the Income Tax Act. In this blog, we will discuss the importance, requirements, and procedure for acquiring Form 10BE in India.
What is Form 10BE?
Charitable organizations and institutes recognized under Section 80G of the Income Tax Act of 1961 are authorized to issue Form 10BE certificates. It allows the donor to claim tax deductions when completing their Income Tax Return (ITR) and acts as documentation of the contributions made by the individual or organization.
Who Issues Form 10BE?
Charitable organizations that have been approved by the Income Tax Department under Section 80G are responsible for issuing the certificate. These organizations are required to register on the income tax portal and submit information about the donations they have received in Form 10BD.
Who Is Eligible for Form 10BE Benefits?
Any taxpayer who has made qualified donations under Section 80G to registered charitable organizations or institutions may use Form 10BE to claim deductions under Section 80G. This applies to individuals, Hindu Undivided Families (HUFs), businesses, partnership firms, and other entities. The type of recipient organization and whether the donation is eligible for a 100% or 50% deduction, with or without an upper limit, will determine the scope of the deduction.
Form 10BE’s Significance to Taxpayers
- Tax Deduction Proof: Donors are not eligible to receive the tax benefits under Section 80G if they do not have this form.
- Compliance Requirement: Registered charitable organizations are required by law to provide Form 10BE to the donor for their contributions.
- Transparency in Donations: Donation transparency reduces false claims by ensuring that contributions are accurately monitored and accounted for.
How Can I Get Form 10BE?
- Donate: Make a contribution to a Section 80G-registered charitable organization.
- Give PAN Information: When making a donation, make sure to include your Permanent Account Number (PAN).
- Obtain Form 10BE: The charitable organization or institution will create and send you Form 10BE via the Income Tax portal.
- Use it for ITR Filing: Include the form with your income tax return as documentation of your Section 80G deduction claims.
The Deadline for Form 10BE Issuance
Form 10BE must be issued by charitable organizations by May 31 of the subsequent financial year in which the donation was received. Before submitting their tax returns, donors should make sure they obtain this form.
In Conclusion
For taxpayers who want to claim deductions on donations made to registered charitable organizations and institutions, Form 10BE is a necessary document. It improves tax compliance and transparency. Make sure you have Form 10BE from the relevant organization well in advance if you have donated and want to receive tax benefits.
Please contact Sahil Jain & Associates, your go-to chartered accounting firm in Panipat, for additional advice on tax-saving investments and compliance requirements.
