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INCOME TAX SECTION 80G

What is Income Tax Section 80G ?? donate

This Section is for donations made by the assessee.

Any amount donated towards charity attracts deduction u/s 80G.

Government has provided tax benefits on donation so that the gap between the demand from needy and donation from the affluent is narrowed.

Some features of 80G are

Any assessee who makes eligible donation is eligible to get deduction u/s 80G .

All donations are not eligible for deduction or tax benefits.

Conditions for claiming deductions

Proof of payment is necessary to claim deduction

Receipt should include name of the trust, address of the trust,name of the donor,amount donated, registration number of the trust

Donations which are not qualified for deductions u/s 80G

Donations made to political parties do not qualify for any deductions.

Any donation which is made to foreign trusts is not qualified for deduction under this section.

Donations made in kind i.e ( food , clothes, medicines ) .

Amount of deduction limit

There is no maximum limit for deduction but in some cases deduction u/s 80G is limited to 10% of the adjusted gross total income of the taxpayer .

 

Categories

Donations paid to specified institutions qualify for tax benefits under section 80G but they are restricted to certain limits.

Based on these limits, all eligible donations are categorized into following four types.

100% eligible deduction without any certain limit

50% eligible deduction without any certain limit

100% deduction restricted to certain limit

50% deduction restricted to certain limit

Donations which come under 100% eligible deduction without any certain limit

  •  Prime Minister’s National Relief Fund
  •  National Defence Fund
  •  Prime Minister’s Armenia Earthquake Relief Fund
  •  The Africa (Public Contribution – India) Fund
  •  The National Foundation for Communal Harmony
  • Approved university or educational institution of national eminence
  • The Chief Minister’s Earthquake Relief Fund, Maharashtra
  •  Donations made to Zilla Saksharta Samiti.
  •  The National Blood Transfusion Council or a State Blood Transfusion Council.
  •  The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.
  • Army Central Welfare Fund, Indian Naval Ben. Fund, Air Force Central Welfare Fund.
  •  National Illness Assistance Fund
  • National Illness Assistance Fund
  •  Chief Minister’s or Lt. Governor’s Relief Fund
  •  National Sports Fund
  • National Cultural Fund
  •  Govt./ local authority/ institution/ association towards promoting family planning
  •  Central Govt.’s Fund for Technology Development & Application
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities
  • Indian Olympic Association/ other such notified association
  • Andhra Pradesh Chief Minister’s Cyclone Relied Fund

Donations which come under 50% eligible deduction without any certain limit

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • National Children’s Fund
  • Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation
  • Donations to govt./ local authority for charitable purposes but excluding family planning
  • Authority/ corporation having income exempt under erstwhile
  • Donations for repair/ renovation of notified places of worship
  • World Vision India
  • Udavum Karangal

Donations which come under 100% deduction restricted to certain limit

  • Donations to the Government or a local authority for the purpose of promoting family planning.
  •  Sums paid by a company to Indian Olympic Association.

Donations which come under 50% deduction restricted to certain limit

  • Donation to the Government or any local authority to be utilized by them for any charitable purposes other than the purpose of promotion of family planning.

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