NGOs are actually required to add donor particulars in Form 10BD by the e-portal of the IT Department by May 31 for all donations acquired within the earlier FY.
DanaMojo, an Integrated Payment Solutions Platform for NGOs, now supplies NGOs with a straight uploadable format for all donations made through its platform – each on-line in addition to offline.
Assisting in tax compliance amongst its customers following the brand new amendments to the Income Tax Act 1961 for charitable organizations, the cost options platform solely for NGOs, now permits them to satisfy this compliance requirement through a report that may be downloaded from the DanaMojo Dashboard and straight uploaded on the Income Tax portal.
As per the enforcement of the amendments to the Income Tax Act 1961, from FY 21-22, the strategy for availing tax deduction beneath Section 80G on donations made to NGOs has modified. Earlier, the donor had to offer an 80G receipt obtained from the NGO as proof.
However, from FY22, the burden of compliance is now shifting to the NGO which must file a Statement of Donations as Form 10BD by thirty first May of every monetary yr. The NGO may also want to offer the donor with a consolidated Donation Receipt as Form 10BE that may be downloaded from the Income Tax portal. The firm claims that the notification has been introduced in to make sure transparency of the donations acquired and to remove all bogus and fraudulent claims of donations.
To save customers’ effort and time, the corporate claims that by their platform registered NGOs can obtain all its donations and straight add their stories on the Income Tax web site. All donations acquired by the platform in addition to all offline donations entered into the system will probably be obtainable 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 additional 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.”
Source: www.financialexpress.com”