This certificate will have to be taken from the Income Tax Department for tax exemption, know the rules of section 80G

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Tax Saving: You can also avail tax exemption under Section 80G of the Income Tax Act, 1961 for donating to NGOs. To take advantage of tax exemption while filing income tax return ie ITR, you will need a certificate like TDS. This certificate can be downloaded by the organization or NGO receiving the donation from the e-filing portal of the Income Tax Department.

Know the rules of section 80G

As per the rule of Section 80G of the Financial Act 2020, the donation certificate verifies that the money donated by you has been received by the NGO and you are eligible for it. Let us tell that till the financial year 2020-21, the persons who donated could claim deduction only on the basis of donation receipts issued by the institutions. For this he did not need such a donation certificate. But, now to get tax exemption, you have to take a certificate from the Income Tax Department.

This information will have to be given to the Income Tax Department

The recipient organization or NGO approved by the Principal Commissioner or Commissioner of Income Tax Department will have to file the details of donation in Form 10BD electronically on the e-filing portal of the Income Tax Department. Form 10BD can be filed electronically through Electronic Verification Code (EVC) or digital signature. The details of donation in Form 10BD should be filed on or before 31st May of the financial year in which the donation is received.

These documents will be needed

To enable the Donor Institutions to file the correct details of the donation along with the details of the Donor, the Donor Institution must submit proof of name, address and identity. It is necessary to give this information in Form 10BD.

– Permanent Account Number (PAN)

– Aadhaar Number

– tax identification number

– Passport number

– Elector’s Photo ID Number

– Driving License Number

– Ration Card No

Know what is the rule

Suppose an NGO received a donation of 50 thousand rupees from a donor on 1 September 2022. The financial year in which this donation was received is the financial year 2022-23. The details of donation in Form 10BD will have to be submitted to the Income Tax Department on or before May 31, 2023, which is the deadline for filing details for the financial year immediately following the financial year 2022-23. Further, when a taxpayer files ITR for FY 2022-23, the details in the donation certificate need to be entered while filing ITR. The donation certificate to be issued to the donor is downloaded by the donor organization from the income tax portal after filing Form 10BD details. The certificates are generated by the portal only after filing Form 10BD. In this case, these donation certificates are generated through the e-filing portal of the Income Tax Department and issued to the donor.

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