December 17, 2021

There are many organizations like charitable institution, NGO’s which help the poor and the needy and you can make donations to these specified organizations, which will ensure the money is used in right purpose.

The amount donated can be claimed as deduction under sec 80G of Income tax Act 1961.

Deduction under sec 80G can be claimed for donations made in all cases except when the donations are made in kind ( Eg : Food, Clothes, and Medicine, etc.). The assessee(Donor) has to provide proof for the donation made.

Receipt should have the following details:

  1. Amount donated should be mentioned in words and figures

  2. Name of the Donor

  3. Name and Address of the Trust

  4. Registration number of the trust give by Income tax department.

  5. Validity of Registration Number

However, there are certain limitations that are applicable.

  1. Without any Limit

  • 100% deduction of the amount donated

  • 50% deduction of the amount donated

  1. Subject to Maximum Limit of 10% of Adjusted Gross Total Income

  • 100% deduction of the amount donated

  • 50% deduction of the amount donated

Deduction which are allowed without any limit

Donation eligible for full Deductions:

1) The National Defence Fund or the Prime Minister’s National Relief Fund;

2) The Prime Minister’s Armenia Earthquake Relief Fund;

3) The Africa (Public Contribution-India) Fund;

4) The   National   Foundation   for   Communal Harmony;

5) The Chief Minister’s Earthquake Relief Fund, Maharashtra;

6) The National Blood Transfusion Council;

7) The State Blood Transfusion Council;

8) The Army Central Welfare Fund;

9) The Indian Naval Benevolent Fund;

10) The Air Force Central Welfare Fund;

11) The Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996;

12) The National Illness Assistance Fund;

13) The Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund, in respect of any State or Union Territory, as the case may be, subject to certain conditions;

14) The University or educational   institution   of national eminence approved by the prescribed authority;

15) The National Sports Fund to be set up by the Central Government;

16) The National Cultural Fund set up by the Central Government;

17) The Fund for Technology Development and Application set up by the Central     Government;

18) The national trust for welfare of persons with autism, cerebral palsy mental retardation and multiple disabilities.

Donation eligible for 50% Deductions:

1) The Jawaharlal Nehru Memorial Fund;

2) The Prime Minister’s Drought Relief Fund;

3) The National Children’s Fund;

4) The Indira Gandhi Memorial Trust;

5) The Rajiv Gandhi Foundation;

Deduction with Max Limit of 10% of Adjusted Gross Total Income

Donation Eligible for full deductions:

  • Donation to Government or any approved local authority, Institution or Association to be utilized for Promoting Family Planning

  • Any Sums paid by a company to Indian Olympic Association or to any other association notified by the Central Govt for the purpose of development of infrastructure of sports and games or for the sponsorship of sports and games

Donation Eligible for 50% deductions:

  • Donation to Government or any approved local authority, institution or association to be utilized for any charitable purpose other than family planning.

  • Donation to any authority constituted in India by or under law for satisfying the need for housing accommodation  or for the purpose of planning, development or improvement of cities.

  • To any corporation established by the central or state govt for promoting the interests of the members of a minor community.

  • Any notified temple, mosque, gurdwara, church or any other place notified by the central govt to be of Historic archaeological or artistic importance of renovation or repair of such place

Qualifying Limit

The qualifying limits u/s 80G is 10% of the adjusted gross total income. The limit is to be applied to the adjusted gross total income. The ‘adjusted gross total income’ for this purpose is the gross total income (i.e. the subtotal of income under various heads) reduced by the following:

  • Amount deductible under Sections 80CCC to 80U (but not Section 80G)

  • Exempt income

  • Long-term capital gains

  • Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D, relating to non-residents and foreign companies.

That is all that we had to say about the deductions under section 80G. For further queries, please reach out to us.

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