By CA Surekha Ahuja
Donation Certificates, 80G Deduction, NGO Compliance, Due Dates and Practical Solutions
A Donation Is More Than a Receipt
A donation represents trust.
A donor trusts a charitable institution to use the contribution for a meaningful purpose. At the same time, the donor expects that the tax benefit available under the Income-tax law is properly supported.
A common question asked by taxpayers is:
"I have made a donation and received a receipt. Can I claim the deduction in my Income-tax Return?"
The answer is:
Not always.
A donation receipt confirms that the institution has received the contribution. However, for claiming deduction under the Income-tax law, the donor should also ensure that the prescribed reporting and certification requirements are completed.
For eligible institutions:
- Form 10BD is the statement filed with the Income-tax Department reporting donations received.
- Form 10BE is the certificate issued to the donor supporting the deduction claim.
Under the Income-tax Act, 2025, the corresponding forms are:
- Form 113 replacing Form 10BD; and
- Form 114 replacing Form 10BE.
The objective remains unchanged:
The institution reports the donation. The donor receives the certificate required to support the tax deduction.
This guide explains the practical compliance requirements for donors, NGOs, trusts, institutions and tax professionals for FY 2025–26 and FY 2026–27 onwards.
Quick Summary: What You Need to Know
| If you are | What you should do |
|---|---|
| Individual donor | Obtain Form 10BE/Form 114 and preserve payment proof. |
| Company/HUF donor | Ensure the donation claim is supported by proper documentation and reconciliation. |
| NGO/Trust/Institution | File Form 10BD/Form 113 and issue Form 10BE/Form 114 within the prescribed time. |
| Tax professional | Reconcile donation records, certificates and return disclosures before filing. |
Form 10BE and Form 10BD: The Basic Difference
Many donors and institutions confuse these two forms.
The easiest way to remember:
Form 10BD goes to the Income-tax Department.
Form 10BE goes to the donor.
| Particular | Form 10BE | Form 10BD |
| Meaning | Donation certificate | Statement of donations received |
| Purpose | Supports donor's deduction claim | Reports donations to the Income-tax Department |
| Prepared by | NGO/Trust/Institution | NGO/Trust/Institution |
| Filed with Department | No | Yes |
| Issued to donor | Yes | No |
| Responsibility | Donee institution | Donee institution |
Forms 113 and 114 Under Income-tax Act, 2025
The Income-tax Act, 2025 introduces a new structure and renumbering of provisions and forms.
For FY 2026–27 onwards:
| Existing Form | Corresponding Form under Income-tax Act, 2025 | Purpose |
| Form 10BD | Form 113 | Statement of donations received by the institution |
| Form 10BE | Form 114 | Certificate issued to the donor |
For practical understanding, taxpayers may continue to search for Form 10BE and Form 10BD, as these terms remain widely used. However, professionals and institutions should refer to the applicable forms prescribed for the relevant financial year.
CA Surekha's Practical Insight
During transition periods, the biggest compliance risk is not the law itself but using an outdated form or process. Institutions should always verify the applicable form before filing for the relevant financial year.
Who Has to Comply?
The responsibility is primarily on the donee institution.
Responsibilities of NGOs / Trusts / Institutions
They must:
✓ Maintain complete donor records.
✓ File Form 10BD/Form 113 with donor-wise details.
✓ Issue Form 10BE/Form 114 to eligible donors.
✓ Maintain supporting documents.
Responsibilities of Donors
They must:
✓ Donate to eligible institutions.
✓ Provide correct PAN and personal details.
✓ Obtain Form 10BE/Form 114.
✓ Preserve payment proof.
✓ Claim deduction correctly in the Income-tax Return.
A donor does not file Form 10BE, Form 10BD, Form 113 or Form 114.
Who Is Required to File Form 10BD / Form 113?
The reporting obligation applies to eligible institutions receiving donations that qualify for deduction claims.
These may include:
- charitable trusts;
- institutions approved under section 80G;
- universities and educational institutions eligible under the Income-tax law;
- research institutions eligible under section 35; and
- other approved entities covered by the applicable provisions.
Before issuing certificates, institutions should ensure that their approval or registration remains valid.
Due Date for Filing and Issuing Certificates
The institution is generally required to complete both compliance steps:
- Filing the donation statement; and
- Issuing the donation certificate to donors.
The general due date is:
31 May following the end of the relevant financial year.
| Financial Year | Due Date |
| FY 2025–26 | 31 May 2026 |
| FY 2026–27 | 31 May 2027* |
*Subject to any extension or notification issued by the Government.
CA Surekha's Practical Insight
NGOs should not treat 31 May as the starting point of compliance. The reconciliation process should ideally begin immediately after the financial year closes. Most errors arise due to incomplete donor details collected during the year.
Practical Compliance Guide for NGOs
A systematic approach can prevent most compliance issues.
Step 1: Maintain Proper Donor Records
Every institution should maintain:
- donor name;
- PAN;
- address;
- date of donation;
- amount donated;
- mode of payment;
- receipt number; and
- bank reference.
The quality of Form 10BD/Form 113 depends entirely on the quality of donor data maintained during the year.
Step 2: Verify Donor Details
Before issuing certificates, verify:
✓ Correct spelling of donor name.
✓ Correct PAN.
✓ Correct donation amount.
✓ Correct financial year.
✓ Correct payment details.
A small spelling mistake or wrong PAN can create unnecessary difficulty for the donor.
Step 3: Reconcile Before Filing
Before filing Form 10BD/Form 113:
Compare:
- donation register;
- books of account;
- bank statements;
- donation receipts; and
- donor details.
Special attention should be given to:
- March donations;
- large-value donations;
- donations received near year-end; and
- donations where donor information is incomplete.
Step 4: File Statement and Issue Certificates
After reconciliation:
- file Form 10BD/Form 113 within the due date;
- issue Form 10BE/Form 114 to donors;
- retain acknowledgement and supporting records.
Practical Compliance Guide for Donors
For donors, compliance is simple but important.
Before Making Donation
✔ Verify that the institution is eligible to issue donation certificates.
✔ Provide your name exactly as per PAN records.
✔ Provide correct PAN details.
At the Time of Donation
Prefer payment modes that create a clear trail:
- bank transfer;
- UPI;
- cheque; or
- other traceable banking channels.
Obtain: donation receipt; and Form 10BE/Form 114.
While Filing Income-tax Return
Remember:
- Do not upload Form 10BE/Form 114 with the ITR.
- Enter donation details in the relevant schedule.
- Preserve documents for future reference.
Practical Example
Situation:
Mr A donated ₹1,00,000 to an approved charitable institution during FY 2025–26.
The institution issued a donation receipt immediately. However, while filing Form 10BD, the PAN was entered incorrectly.
Result: Mr A may have made a genuine donation, but the mismatch can create unnecessary questions while processing or assessing the deduction claim.
Solution: Verify details before filing:
- donor name;
- PAN;
- donation amount; and
- payment records.
A two-minute verification can prevent months of follow-up.
Is a Manual Form 10BE Valid?
A manually prepared Form 10BE may be acceptable where permitted, provided the information is accurate and matches the reported details.
The important requirement is consistency between:
- Form 10BE/Form 114 issued to donor;
- Form 10BD/Form 113 filed by the institution; and
- Actual payment records.
The format matters less than accuracy and reconciliation.
Common Mistakes by NGOs and Donors
| Common Mistake | Impact | Better Practice |
| Incorrect PAN | Certificate mismatch | Verify PAN before issuing |
| Wrong donation amount | Deduction issue | Reconcile with bank records |
| Delay in filing | Late fee and penalty exposure | Complete compliance early |
| Missing Form 10BE | Donor difficulty | Issue certificates promptly |
| Incorrect financial year | Wrong reporting | Verify donation date |
Key Takeaways
✓ Form 10BD/Form 113 is filed by the institution, not the donor.
✓ Form 10BE/Form 114 is issued to the donor by the institution.
✓ Donation receipts alone may not be sufficient for claiming deduction.
✓ Accurate PAN, amount and donor details are critical.
✓ Proper compliance protects both NGOs and donors.
Continued in Part 2
Part 2 will cover:
- Claiming donation deduction in the Income-tax Return.
- Penalties and consequences.
- What happens if Form 10BE and Form 10BD do not match.
- Correction mechanism.
- Detailed FAQs.
- Donor and NGO compliance checklists.
- Final professional guidance.
