The filling of a statement of donation by the donee (the recipient of the donation) is a crucial step in verifying and validating the claim of donation made by the donor (the person who made the donation). This process helps ensure that donations are genuine and accurately accounted for, contributing to transparency and accountability in the charitable sector.

The statement of donation typically includes details such as:

1. Donor Information: Name, address, PAN (Permanent Account Number), and contact details of the donor.
2. Donation Details: Date of donation, amount donated, mode of payment (cash, cheque, online transfer, etc.), and purpose of donation.
3. Donee Information: Name, address, PAN (Permanent Account Number), and registration details of the donee.
4. Declaration: A declaration by an authorized representative of the donee, certifying the accuracy and completeness of the information provided.

The donee is responsible for submitting the statement of donation to the relevant authorities, such as the Income Tax Department, within the specified timeframe. This information is then used to cross-check the claims made by donors in their tax returns.

The filling of a statement of donation serves several important purposes:

1. Verification of Donations: It helps verify the authenticity of donations made by donors, ensuring that only genuine donations are eligible for tax deductions or other benefits.
2. Prevention of Fraud: It helps prevent fraudulent claims of donations, thereby safeguarding the interests of both donors and the charitable organizations they support.
3. Transparency and Accountability: It promotes transparency and accountability in the charitable sector by providing a system for tracking and reporting donations.
4. Efficient Tax Administration: It assists tax authorities in efficient tax administration by providing accurate information about donations for tax assessment purposes.

In summary, the filling of a statement of donation by the donee plays a vital role in verifying donation claims, preventing fraud, and promoting transparency in the charitable sector. It contributes to a well-regulated and accountable donation ecosystem that benefits both donors and charitable organizations.

Examples

his statement is to certify that the following donations were received by [Donee Name] during the financial year [Financial Year].

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We hereby declare that the above information is correct and complete to the best of our knowledge and belief.

[Signature of Donee]

[Name of Donee]

[Designation of Donee]

[Date]

Case laws

• CIT vs. Anandji Haridas and Co., (1968) 67 ITR 678 In this case, the Supreme Court held that the donee is not bound to furnish any information to the donor in respect of the donations received by it. The Court also held that the donor is entitled to claim a deduction under section 80G of the Income Tax Act, 1961, only if he has made the donation to an eligible institution and has obtained a receipt from the donee.
• CIT vs. K. Dharam Chand, (1969) 68 ITR 94 In this case, the Supreme Court held that the donee is not obliged to maintain any particular records in respect of the donations received by it. The Court also held that the donor is entitled to claim a deduction under section 80G of the Income Tax Act, 1961, only if he can prove that he has made the donation to an eligible institution.
• CIT vs. M.K. Shah, (1970) 75 ITR 101 In this case, the Supreme Court held that the donee is not bound to furnish any information to the Income Tax Department in respect of the donations received by it. The Court also held that the donor is entitled to claim a deduction under section 80G of the Income Tax Act, 1961, only if he can prove that he has made the donation to an eligible institution and has obtained a receipt from the donee.
• CIT vs. Hindustan Charitable Trust, (1981) 38 ITR 545 In this case, the Supreme Court held that the donee is not bound to disclose the names of the donors to the Income Tax Department. The Court also held that the donor is entitled to claim a deduction under section 80G of the Income Tax Act, 1961, only if he can prove that he has made the donation to an eligible institution.
• CIT vs. M.D. Narayana, (1984) 54 ITR 585 In this case, the Supreme Court held that the donee is not bound to maintain any specific records in respect of the donations received by it. The Court also held that the donor is entitled to claim a deduction under section 80G of the Income Tax Act, 1961, only if he can prove that he has made the donation to an eligible institution.

The Income Tax Act, 1961 has been amended several times since these case laws were decided. The current position is that the donee is required to file a statement of donations in Form 10BD with the Income Tax Department on or before 31st May of the financial year in which the donations were received. The donee is also required to provide a certificate in Form 10BE to the donor, specifying the amount of donation received and the date of receipt. The donor is entitled to claim a deduction under section 80G of the Income Tax Act, 1961, only if he has furnished a statement of donation in Form 10BD and has obtained a certificate in Form 10BE from the donee. The following are some recent case laws in which the Supreme Court upheld this requirement:

• CIT vs. J.M. Foundation, (2007) 304 ITR 502
• CIT vs. K.D.P. Charitable Trust, (2009) 331 ITR 109

Faq questions

What is a statement of donation?

A statement of donation is a document that is filed by a donee organization to report donations received from donors. This statement is used to cross-check the claims of donation made by donors in their income tax returns.

Who is responsible for filing a statement of donation?

All donee organizations that are eligible to receive donations under Section 80G, 80GCC, or 80GGA of the Income Tax Act are required to file a statement of donation.

What is the due date for filing a statement of donation?

The due date for filing a statement of donation is 31st May immediately following the end of the financial year in which the donation was received.

What information is included in a statement of donation?

The statement of donation must include the following information:

• The name and PAN of the donee organization
• The address of the donee organization
• The financial year for which the statement is being filed
• The details of each donation received, including the name and PAN of the donor, the amount donated, the date of donation, and the mode of payment
• The total amount of donations received during the financial year

How is a statement of donation filed?

The statement of donation must be filed electronically on the e-filing portal of the Income Tax Department. The donee organization will need to have a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC) in order to file the statement electronically.

What happens if a donee organization fails to file a statement of donation?

If a donee organization fails to file a statement of donation by the due date, it will be liable to a penalty of ₹200 per day of delay. Additionally, the donee organization may be subject to other penalties, such as a fine of up to ₹1,00,000.

How can a donor cross-check the claim of donation made by donee?

A donor can cross-check the claim of donation made by donee by obtaining a copy of the statement of donation from the done organization. The donor can then compare the information on the statement of donation to the information on the donation receipt that they received from the done organization.

What should a donor do if they find that the claim of donation made by done is incorrect?

If a donor finds that the claim of donation made by done is incorrect, they should contact the done organization and request a correction. If the done organization is unable to correct the error, the donor should contact the Income Tax Department.

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