Have You Donated to an NGO? Learn How to Claim Tax Exemption Under Section 80G Using Form 10BD and Form 10BE

If you donate to a charitable organization (NGO) and get confused about how to get tax relief in your income tax return, this article is a complete guide for you. In recent years, the government has made significant changes to make the donation and tax exemption process more transparent and systematic. Now, tax exemption under Section 80G is no longer available just on the basis of a receipt; the process of Form 10BD and Form 10BE has been made mandatory.

These rules are implemented under Section 80G of the Income Tax Act, 1961, so that the activities of both the donor and the institution remain clear and verified. Let’s understand in detail what these forms are, how they work, and what benefits you will get from them.

Section 80G and the New Transparent System

Under Section 80G, if you donate to a registered NGO or trust, you get a deduction benefit in your taxable income. This deduction can be 50% or 100%, depending on the category of the institution.

Earlier, the process was relatively simple: make the donation, take the receipt, and claim it in your ITR. But there was a possibility of misuse in this system. Therefore, the government introduced a digital reporting system in which information about both the NGO and the donor is recorded with the Income Tax Department.

This is where the role of Form 10BD and Form 10BE begins.

What is Form 10BE?

In simple words, Form 10BE is an official certificate that proves you have donated to a registered NGO and that donation is eligible for income tax exemption. This certificate is issued by the receiving institution (NGO). When you file your Income Tax Return (ITR), you claim the tax exemption under Section 80G on the basis of this very form.

Its objectives are:

• To ensure the validity of the donation
• To prevent fake claims
• To match with the Income Tax Department’s records

What is Form 10BD and Why is it Necessary?

Before issuing Form 10BE, it is mandatory for the NGO to fill out Form 10BD. Form 10BD is the statement that the NGO submits to the Income Tax Department. It includes the following information:

1. Donor’s name
2. PAN number
3. Donation amount
4. Donation date
5. Type of donation

This means the Income Tax Department now has a prior record of who donated how much to which institution. After that, the institution issues Form 10BE to the donor based on the same information. This entire process makes tax exemption transparent and authentic.

When and How is Form 10BE Issued?

Understanding the timeline of this process is very important:

• After the financial year ends, the NGO has to fill out Form 10BD.
• This detail is submitted to the Income Tax Department.
• After that, the NGO must mandatorily issue Form 10BE to the donor by 31 May.

For example: If you made a donation during the financial year 2025-26 (April 2025 to March 2026), the related NGO must give you Form 10BE by 31 May 2026.

Understand with an Example

Suppose Narayan Seva Sansthan received a donation of ₹21,000 from a donor in October 2025.

Since this donation occurred in FY 2025-26:

• The institution will have to fill Form 10BD after the year ends and submit the donation details to the Income Tax Department.
• After that, it will be mandatory to issue Form 10BE to the donor by 31 May 2026.
• The donor will claim tax exemption under Section 80G in their ITR on the basis of this Form 10BE.

If this form is not issued, the tax exemption claim may also be rejected.

Why is Form 10BE So Important?

In the new system, this form is mandatory because:

1. Only a receipt is no longer sufficient.
2. The Income Tax Department matches the donation claim with Form 10BD filed by the NGO.
3. If both records do not match, your claim may be blocked.
4. This system prevents fake or duplicated claims.
5. Honest donors benefit from it, and the entire process becomes reliable.

How to Avail the Tax Exemption Benefit Correctly?

If you want your donation to be used in social work and also ensure tax exemption, keep these things in mind:

• Donate only to NGOs registered under 80G.
• Do not make cash donations exceeding ₹2,000. Use digital or bank methods.
• Keep the donation receipt safe.
• Ensure you receive Form 10BE from the NGO by 31 May.
• Enter the correct details while filing ITR.

The Form 10BD and Form 10BE system may seem a bit complicated at first, but in reality, it makes the donation process more secure and transparent. Now your donation is also a certified financial transaction. If you contribute to social service, this system is beneficial for you. Just make sure you get Form 10BE on time so that you can claim tax exemption under 80G in your ITR.