Section 80G of the Income Tax act

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Section 80G of the Income Tax act

Contributions made to some relief funds and charitable institutions TRUST and NGO can be claimed as a deduction under Section 80G of the Income Tax Act. However all donations are not eligible for deductions under section 80G. Only Donations made to certain prescribed funds  may qualify as a deduction. This deduction can be claimed by any person or taxpayer – that may be individuals, companies, firms or any other person.

Section 80G of the Income Tax act
Section 80G of the Income Tax act

80G donation limit should not be in kind.

2. The donation should be to specified or approved funds/institutions.

3. Amount paid in cash should not exceed 2,000.

4.The donation should not be given for the benefit of any particular individual, religion, class, creed etc. However, donations given for the benefit of schedule castes, schedule tribes, backward class or women or children are eligible for deduction.

5. Donation may be out of taxable or non-taxable income of previous year or any other year.

 80G exemption list

Eligible Donation and Amount Deduction

100% of amount donated is deductible

1.PM’s National Relief Fund.

2. PM’s Armenia Earthquake Relief Fund;

3. The Africa (Public Contributions India) Fund;

4. The National Foundation for Communal Harmony

5. A university or any educational institution of national eminence as may be approved;

6. The National Illness Assistance Fund;

7. Any Zila Saksharta Samiti for improvement of primary education in villages and towns and for literacy activities;

8. National Blood Transfusion Council or to any State Blood Transfusion Council;

9. Any fund set up by the State Government for medical relief to the poor,

10. The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Airforce Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of the such forces or their departments.

11. The Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union Territory, as the case may be:

12. The National Sports Fund to be set up by the Central Government;

13. The National Cultural Fund set up by the Central Government;

14. The Fund for Technology Department and Application setup by the Central Government;

15. The National Defence Fund;

16. Any fund set-up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat;

17. The Maharashtra Chief Minister’s Relief Fund or Chief Minister’s Earthquake Relief Fund, Maharashtra

18. National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple disabilities constituted under the relevant Act of 1999;

19. Andhra Pradesh Chief Minister’s Cyclone Relief Fund.

20. The National Children’s Fund;

21. CM Relief Fund Uttarakhand contribution made towards disaster relief for the affected people of Uttarakhand

22. The Clean Ganga Fund (amount donated by residents only)

23. The Swachh Bharat Kosh

24. National Fund for Control of Drug Abuse

(Amount of deduction: 100% of aggregate of donations mentioned above in 1 to 24)

 

50% of amount donated is deductible

1. Jawaharlal Nehru Memorial Fund;

2. Indira Gandhi Memorial Trust; 3. Rajiv Gandhi Foundation;

4. Prime Minister’s Draught Relief Fund 

Amount of deduction: 50% of aggregate of donations 1 to 4 mentioned above )

 

100%or 50% of qualifying amount is deductible qualifying amount shall be restricted to 10% of adjusted total Income.

 

1. Contribution by a company as donations to the Indian Olympic Association or to any other Association notified by the Central Government u/s 10(23);

2.Government or local authority or approved institution or association for promotion of family planning:

3. Any approved fund or institution established for charitable purposes; 4. Government or local authority to be used for charitable purpose;

5. Any authority set up for providing housing accommodation or town planning:

6. Any corporation established by Government for promoting interest of schedules caste/scheduled tribe/backward class;

7. Renovation of notified temple mosque.church, or gurudwara or any other notified place of national importance;

 

80G Income Tax – Amount of deduction:

1. Calculate Gross qualifying amount, i.e., sum total of all donations from 1 to 7 mentioned above.

2. Compare it with 10% of Adjusted Total Income*

3. Lower of the above two is Net qualifying amount

4. Calculate amount of deduction as follows:

 

Donations 1 and 2 = 100% of the qualifying amount.

Donations 3 to 7 = 50% of the qualifying amount

Adjusted Total Income means Gross Total Income as reduced by

• Deductions u/s. 80CCC to 80U other than 80G

• Long-term capital gains Short-term capital gains under section 111A, i.e.,short-term capital gains on transfer of shares through a recognized stock exchange which are taxable at the rate of 15%

• Exempt incomes

• Any income referred to in Sections 115A to D included in the Gross Total Income which are taxable at special rates.


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