Government of India extends its full support to all tax payers for promotion to charity, donation. A single section (Income Tax 80G) under Income Tax Act 1961 applied to everyone from individual to company. Everyone can take benefits of this section by making donations and charity. Even if your are NRI then also you can claim benefit under this section. While filing Income Tax Return you can claim 80G deduction Benifit.
- What is section 80 G u/s Income Tax Act 1961 ?
- What is the mode of payment?
- Donations Eligible for 100% Deduction Without Qualifying Limit
- Donations Eligible for 50% Deduction Without Qualifying Limit
- Donations Eligible for 100% Deduction Subject to 10% of Adjusted Gross Total Income
- 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 80G(5)
- Section 80GGA
- Donations Eligible Under Section 80GGA
- Claim Tax deduction
What is section 80 G u/s Income Tax Act 1961 ?
If you have made any charity and donations or Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations, however, are not eligible for deductions under section 80G. Only donations made to prescribed funds qualify as a deduction. This deduction can be claimed by any taxpayer – individuals, company, firm or any other person. But only donation made in cash cheque mode. If you gave food , clothes etc and want to claim under this section then this is not allowed.
What is the mode of payment?
From 2017-18 donation made in cash are more than 2000 cannot be claimed as tax deduction. Earlier cash limit was 10000. Deduction only be claimed if made via cheque,cash or draft. In-kind contributions such as food, material, clothes, medicines etc. do not qualify for deduction under section 80G. The various donations specified in section 80G are eligible for a deduction of up to either 100% or 50% with or without restriction, as provided in section 80G.
Donations Eligible for 100% Deduction Without Qualifying Limit
1. Fund set up by a State Government for the medical relief to the poor
2. National Illness Assistance Fund
3. National Blood Transfusion Council or to any State Blood Transfusion Council
4. National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
5. Chief Minister’s Earthquake Relief Fund, Maharashtra
6. Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
7. Any trust, institution or fund to which Section 80G(5C) 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
8. Africa (Public Contributions – India) Fund
9. Swachh Bharat Kosh (applicable from FY 2014-15)
10. Clean Ganga Fund (applicable from FY 2014-15)
11. National Fund for Control of Drug Abuse (applicable from FY 2015-16)
12. National Defence Fund set up by the Central Government
13. Prime Minister’s National Relief Fund
14. National Foundation for Communal Harmony
15. An approved university/educational institution of National eminence
16. Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
National Sports Fund
17. National Cultural Fund
18. Fund for Technology Development and Application
19. National Children’s Fund
20. Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
21. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund,
22. Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
23. The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6, 1993
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 80G(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(26BB) for promoting the interest of the minority community
****For repairs or renovation of any notified temple, mosque, gurudwara, church or other places
Section 80GGA allows deductions for donations made towards scientific research or rural development. All assessee can claim deduction under this section except those who have an income (or loss) from a business and/or a profession. Mode of payment: Donations can be made in the form of a cheque or by a draft or in cash; however cash donations in excess of Rs 10,000 are not allowed as deductions. 100% of the amount that is donated or contributed is considered eligible for deductions.
Donations Eligible Under Section 80GGA
*Sum paid to a research association which undertakes scientific research, or a sum paid to a college, university or any other institution to be used for scientific research that is all approved by the prescribed authority under section 35(1)(ii)
**Sum paid to a research association which undertakes research in social science or statistical research, or sum paid to a college, university or any other institution to be used for the same purpose, and these must all be approved by the prescribed authority under section 35(1)(iii)
***Sum paid to an approved association or institution which undertakes any program of rural development and is approved under section 35CCA
****Sum paid to an approved association or institution which undertakes training of person(s) for implementing programs of rural development
****Sum paid to a public sector company, local authority or an approved association or institution which carries out projects or schemes approved under section 35AC.
*****Any Sum paid to notified Rural Development Fund
******Any Sum paid to notified Fund for Afforestation
*******Any Sum paid to notified National Poverty Eradication Fund
********If a deduction has been allowed under section 80GGA, such expenses shall not be deductible under any other provision of the income tax act.
Claim Tax deduction
To claim this deduction for your donation you need to submit following detail in your ITR.
Name of trust/Scheme/
PAN of trust
Address of trust
Amount of Contribution
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