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Differences between Form 10B, 10BB, 10BD, 10BE for Trusts and Charitable Organizations

Form 10B                                     

Every organization or trust registered under Section 12 must file Form 10B. Here are some of the situations where filing form 10B is mandatory:

  • Gross total income of the trust or institution, before applying deduction under section 11 of Income tax act, 1961 exceeds Rs.5 crore during the previous financial year.
  • A trust or institution receives any amount of foreign contribution. Even if the institution is not registered under section 12A or approved under section 10(23C), they must file form 10B.
  • An institution or trust has used any amount of its income outside India in the previous year.

Difference between form 10B and 10BB

Due date for filing Tax audit report (Form 10B)

The due date for Form 10B as per the law for any previous year is usually one month before the income tax return filing due date. (i.e.,) on or before 30th September.

Consequence of not filing Form 10B

Failure to file Form 10B can lead to serious consequences, including:

  1. Loss of Tax Exemption: The charitable or religious organization may lose its tax exemption status.
  2. Tax Liability: The organization may become liable to pay income tax on its earnings.
  3. Penalties: Penalties and interest may be levied for non-compliance.

Form 10BB?

Charitable institutions registered under Sec 12AB or different clauses of S.10(23C) and not covered by the specified criteria for Form 10B shall file Form 10BB for each financial year within the above said due date each financial year.

Form 10BD

It is a form which every charitable institution shall file to disclose the donations that were received during a financial year. The organization while filing the form must cover the following sections:

  • Section 35 (1A) (i) of the Act
  • Section 80G (5) (viii) of the Act

All eligible trusts, organizations, and institutions need to file Form 10BD on or before 31 May in the following financial year in which they received the donation.

Failing to file the form within the due date shall attract a penalty fee of Rs 200 per day.

Form 10BE

Every person who has contributed a donation to a registered Trust or Institution can claim a deduction under section 80G. To claim such an exemption, Form 10BE is proof of evidence to validate the deduction that shall be claimed under Section 80G. Every registered Trust or Institution, after filing Form 10BD or a statement of donations, must download and issue this certificate of donation (Form 10BE) to the donor.

The due date of issuing Form 10BE is on or before May 31 of the financial year of the following year in which the institution has received its donation.

This certificate contains all necessary information about the charitable institution and donor. This includes the following:

  • PAN
  • Name and Address of the charitable trust
  • Name and Address of the donor
  • Date of approval
  • Unique identification number (Aadhaar, PAN, other) name of the donor,
  • Financial year
  • Type of donation (Corpus, specific grants, other)
  • Section under which the deduction is eligible after donating (Section 80G (5)(vi), Section 35 (I)(ii). Section 35(I)(iii), Section 35 (I)(iia).
  • Total donation amount.

When is FCRA (Foreign Contribution Regulation Act) applicable to a trust

Every Trust or Institution which receives donations from foreign sources shall ensure compliance with the provisions of the Foreign Contribution Regulation Act, 2010.

  1. Obtain registration or prior permission from central government for receiving donation from a foreign source
  2. File Form FC 1 online within the time limit specified in the act
  3. Receive and maintain the foreign donation in a separate bank account, utilize only for the purpose specified in the application for registration or application for obtaining prior permission

Foreign sources as FCRA shall include foreign citizen, foreign company, foreign Government, societies & clubs, and associations incorporated outside India, foreign trust/foundation etc.,

This blog post has been written by Yuvarani of V Ramaratnam and Company

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