Auto-generated Form 10BD for direct upload on Income Tax portal – Here is how to do i

NGOs are now required to upload donor details in Form 10BD through the e-portal of the IT Department by May 31 for all donations received in the previous FY. 

DanaMojo, an Integrated Payment Solutions Platform for NGOs, now provides NGOs with a directly uploadable format for all donations made via its platform – both online as well as offline.

Assisting in tax compliance among its users following the new amendments to the Income Tax Act 1961 for charitable organizations, the payment solutions platform exclusively for NGOs, now enables them to meet this compliance requirement via a report that can be downloaded from the DanaMojo Dashboard and directly uploaded on the Income Tax portal. 

As per the enforcement of the amendments to the Income Tax Act 1961, from FY 21-22, the method for availing tax deduction under Section 80G on donations made to NGOs has changed. Earlier, the donor had to provide an 80G receipt obtained from the NGO as proof. 

However, from FY22, the burden of compliance is now shifting to the NGO which needs to file a Statement of Donations as Form 10BD by 31st May of each financial year. The NGO will also need to provide the donor with a consolidated Donation Receipt as Form 10BE that can be downloaded from the Income Tax portal. The company claims that the notification has been brought in to ensure transparency of the donations received and to eliminate all bogus and fraudulent claims of donations. 

To save users’ time and effort, the company claims that through their platform registered NGOs can download all its donations and directly upload their reports on the Income Tax website. All donations received through the platform as well as all offline donations entered into the system will be available in 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/her donations which are sometimes forgotten or not filed due to loss of receipts. It may thus encourage donors to give more as they reap the benefits without any extra effort from their end and also bring greater transparency in the system for donations and resulting tax exemptions claimed.” 

He further explains, “This will ensure that people not donating, but claiming exemptions, are removed thus reducing the tax loss of the government and will give us a true picture of 80G donations in the country.”