Section 234G of the Income Tax Act, 1961, imposes a late fee on institutions, trusts, or funds that fail to:
- File the donation statement (Form 10BD)by the due date, or
- Issue donation certificates (Form 10BE)to donors on time.
This provision ensures compliance for entities approved under Section 80G(5) (charitable donations) or Section 35(1A) (scientific research donations).
🔹 Key Provisions of Section 234G
- Applicability
Applies to:
-
- Charitable trusts/NGOs(approved under Section 80G).
- Research institutions/universities(approved under Section 35).
- Any entity required to file Form 10BD or issue Form 10BE.
- Due Dates
-
- Form 10BD (Donation Statement):Must be filed by 31st May of the next financial year (e.g., FY 2024-25 due by 31st May 2025).
- Form 10BE (Donation Certificate):Must be issued to donors by the same deadline (31st May).
- Late Fee Structure
-
- ₹200 per dayfor each day of delay.
- Maximum feecannot exceed the total donation amount for which the default occurred.
- Example Calculation
-
- Donation received (FY 2024-25):₹5,00,000
- Form 10BD filed on:15th July 2025 (45 days late)
- Late fee:₹200 × 45 = ₹9,000
- Cap:Since ₹9,000 < ₹5,00,000, the full ₹9,000 is payable.
🔹 Additional Penalties
- Section 271K Penalty:
-
- If the institution completely failsto file Form 10BD, a penalty of ₹10,000 to ₹1,00,000 may apply.
- Donors Lose Tax Benefits:
-
- If Form 10BE is not issued, donors cannot claim deductionsunder Section 80G or 35.
🔹 How to Avoid Penalties?
✔ File Form 10BD electronically via the Income Tax e-filing portal before 31st May.
✔ Generate and issue Form 10BE to donors immediately after filing.
✔ Maintain donor details (PAN, amount, mode of donation) for accurate reporting
