Electronic income

Auto-generated Form 10BD for Direct Upload to the Income Tax Portal – Here’s How

NGOs are now required to upload donor details into Form 10BD via the IT department’s electronic portal by May 31 for all donations received in the previous fiscal year.

DanaMojo, an integrated payment solutions platform for NGOs, now provides NGOs with a directly downloadable format for all donations made through its platform – both online and offline.

Assisting with the tax compliance of its users following new amendments to the Charities Income Tax Act 1961, the payment solutions platform exclusively for NGOs, now enables them to meet this compliance requirement via a report downloadable from the DanaMojo dashboard and directly uploaded to the income tax portal.

In accordance with the application of amendments to the Income Tax Act 1961, from the financial year 21-22 the method of tax deduction under section 80G on donations made to NGOs has exchange. Previously, the donor had to provide an 80G receipt obtained from the NGO as proof.

However, as of FY22, the burden of compliance is now shifted to the NGO who must file a donations statement in the form of Form 10BD by May 31 of each fiscal year. The NGO will also need to provide the donor with a consolidated donation receipt in the form of Form 10BE which can be downloaded from the income tax portal. The company says the notification was introduced to ensure transparency of donations received and to weed out all false and fraudulent claims of donations.

To save users’ time and effort, the company says that through their platform, registered NGOs can upload all of their donations and upload their reports directly to the income tax website. All donations received through the platform as well as all offline donations entered into the system will be available on Form 10BD.

Dhaval Udani, CEO – DanaMojo says, “With this new amendment, the common man will now be able to claim all the tax benefits of his donations which are sometimes overlooked or unfiled due to loss of receipts. This can thus incentivize donors to give more as they reap the benefits without additional effort on their part and also bring greater transparency in the system of donations and the resulting tax exemptions claimed.

He further explains, “This will ensure that people who do not donate, but claim exemptions, will be removed, reducing the tax loss to the government and giving us a true picture of 80G donations in the country.”