If you donate to a charitable institution (NGO) and think that it is difficult to avail income tax exemption, then this blog is for you. The government has made Form 10BD and Form 10BE mandatory under Section 80G of the Income Tax Act in the last few years, so that donors can avail tax exemption in a transparent manner.
Let us know how this form works and how you will benefit from it.
In simple language, Form 10BE is a certificate that proves that you have donated to an NGO and on the basis of this you can claim tax exemption in your Income Tax Return (ITR). It has been issued by the Ministry of Finance so that the activities of both the taxpayer and the NGO remain transparent.
Earlier, only a simple receipt was received after donating, but now the government has changed the rules. Now the NGO receiving the donation will have to fill Form 10BD and tell the Income Tax Department how much donation they took from whom. Then this institution will issue Form 10BE to the donor on the basis of the same information, so that he can claim exemption in his tax.
Suppose, Narayan Seva Sansthan received a donation of ₹ 21,000 from a donor in October 2024. Since this donation is for the financial year 2024-25, the institution will have to fill Form 10BD and inform the Income Tax Department about it.
Now the institution has to issue Form 10BE to the donor by 31 May 2025, so that the donor can claim tax exemption under Section 80G in his Income Tax Return (ITR).
Earlier donors could claim tax exemption only on the basis of the receipt given by the NGO, but now the government has changed it. Now:
If you contribute to social work, then this rule is very beneficial for you. Now, without any hassle, you can get tax exemption on your donation amount!
So the next time you donate to a charitable institution, get Form 10BE and avail tax exemption!