Chapter VI A of Income Tax Act contains various sub-sections of section 80 that allows an assessee to claim deductions from the gross total income on account of various tax-saving investments, permitted expenditures, donations etc. Such deductions allow an assessee to considerably reduce the tax payable. Section 80 G is one of them.
Who is eligible for benefit of Sec 80 G?
Person who has made donation to a Charitable institution or Government relief fund can avail benefit of Sec 80 G. But any donation made to trusts situated outside India and any political parties do not qualify for the benefit of Sec 80 G.
What is a mode of payment?
Deduction under Sec. 80 G can only be claimed when the payment has been made via Cash/Cheque/Bank Draft. Donation in Cash exceeding Rs.10,000/- is disallowed.
Note:-From Financial Year 2017-18 onward , any donations made in cash exceeding Rs 2,000 will not be allowed as deduction. The donations above Rs 2,000 should be made in any mode other than cash to qualify as a deduction under section 80 G.
Documents required to claim the deduction
In order to claim the deduction assessee need to submit following documents to Income Tax Dept.
1. The name and address of the trust
2. The name of the donor
3. The amount donated (mentioned in words and figures)
The registration number of the trust, as given by the income tax department u/s 80 G along with its validity.
How much deduction is allowed u/s 80 G?
The amount qualifying for deduction under Section 80 G can be either 100 per cent or 50 per cent, depending on the entity to which donation is made.
Donations Eligible for 100% Deduction Without Qualifying Limit
- National Defence Fund set up by the Central Government
- Prime Minister’s National Relief Fund
- National Foundation for Communal Harmony
- An approved university/educational institution of National eminence
- Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
- Fund set up by a State Government for the medical relief to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or to any State Blood Transfusion Council
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
- National Sports Fund
- National Cultural Fund
- Fund for Technology Development and Application
- National Children’s Fund
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
- The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
- The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6, 1993
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
- Any trust, institution or fund to which Section 80 G (5 C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made during January 26, 2001, and September 30, 2001) or
- Prime Minister’s Armenia Earthquake Relief Fund
- Africa (Public Contributions India) Fund
- Swachh Bharat Kosh (applicable from FY 2014-15)
- Clean Ganga Fund (applicable from FY 2014-15)
- National Fund for Control of Drug Abuse (applicable from FY 2015-16)
Donations Eligible for 50% Deduction Without Qualifying Limit
- Jawaharlal Nehru Memorial Fund
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
Donations Eligible for 100% Deduction Subject to 10% of Adjusted Gross Total Income
- Donations to the government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
- Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India, or the sponsorship of sports and games in India.
Donations Eligible for 50% Deduction Subject to 10% of Adjusted Gross Total Income
- Any other fund or any institution which satisfies the conditions mentioned in Section 80 G(5)
- Government or any local authority, to be utilized for any charitable purpose other than the purpose of promoting family planning
- Any authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or both
- Any corporation referred to in Section 10(26 BB) for promoting the interest of the minority community
- For repairs or renovation of any notified temple, mosque, gurudwara, church or other places