Foreign Donation Disclosure Rules CBDT Tightens Compliance
India’s Income Tax Department has called for greater transparency in foreign donations received by charitable institutions. In a fresh push for accountability, the CBDT mandates detailed disclosures under Form 10BD for each donor, including foreign contributors.
Let’s break down what’s changing and how it affects trusts, NGOs, and other approved entities.
What Is Form 10BD and Why Is It Important?
Form 10BD is a statement of donations to be filed by entities approved under:
- Section 80G (for tax deduction to donors)
- Section 35(1) (for scientific/social research)
Mandatory for FY 2023–24 onwards
Filing due date: 31st May of the following financial year
What Does the New CBDT Directive Say?
The CBDT directive (refer Press Release dated May 2025) calls for:
- Complete donor disclosure — including PAN/Aadhaar or passport details
- Breakdown of foreign contributions
- Identification of donation mode (bank transfer, foreign remittance, etc.)
Even a single foreign donation must be reported clearly and accurately.
Foreign Donation Reporting – What Must Be Disclosed?
| Required Information | Details to be Filed |
|---|---|
| Donor Name | Full name of the foreign contributor |
| Country of Origin | ISO country code (e.g., US, UK, DE) |
| Passport / Tax ID | Mandatory for non-resident donors |
| Donation Amount | In INR (converted on receipt date) |
| Mode of Receipt | Bank/Online/FCRA-approved channel |
| Purpose | Research / Education / Relief / Other |
Note: If PAN is unavailable, Passport number is now mandatory.
Legal Reference & Compliance Impact
- Section 80G(5)(viii) and 35(1A) of the Income Tax Act, 1961
- Rule 18AB of the Income-tax Rules, 1962
- CBDT Notification No. 19/2021 (relevant for Form 10BD implementation)
- Reporting under FCRA, if applicable, must also be reconciled
Avoid Penalties by Cross-Verifying Donor Details
Before filing Form 10BD:
- Collect valid ID documents from foreign donors
- Convert amounts using RBI reference rates on the date of receipt
- Double-check FCRA compliance (if registered under FCRA)
Non-compliance = ₹10,000 + ₹100/day penalty under Section 234G
Step-by-Step Guide to File Form 10BD
- Log in to Income Tax e-filing portal
- Navigate to e-File → Income Tax Forms → File Form 10BD
- Fill all donor details, including foreign IDs
- Validate donation amounts and mode
- Submit with DSC (Digital Signature)
- Download acknowledgment for your records
Who Must File Form 10BD?
Entities registered under:
- Section 12AB / 10(23C) (Trusts, NGOs)
- 80G (for donor deduction benefit)
- Section 35(1)(ii)/(iii) (Scientific or research institutions)
Even if foreign donations form a small part of total contributions — filing is mandatory.
FAQs on Foreign Donation Disclosure
Q1. What if the foreign donor doesn’t share a passport copy?
Then the donation should not be claimed under 80G. Identity proof is now mandatory.
Q2. Is it compulsory for foreign donors to have PAN?
No, but if PAN is absent, passport or foreign tax ID is needed.
Q3. Can donations via cryptocurrency be reported?
No. Only bank or regulated channel donations are accepted under compliance laws.
Summary
CBDT mandates new foreign donation disclosure norms under Form 10BD. Trusts must file donor-wise details, including foreign IDs, by 31st May annually to avoid penalties.