Deduction in respect of Donations [Section 80G]
- Any assessee (resident or non-resident) who makes a donation to specified funds, institutions, or associations is eligible to claim a deduction underSection 80G.The deduction allowed ranges from 50% to 100% of the donation amount, subject to certain limits and conditions.
- Donations made in cash exceeding Rs. 2,000 are not eligible for deduction; donations in kind are not deductible.
- Deduction under this provision is allowed in accordance with the following:
100% deduction without a maximum limit
50% deduction without a maximum limit
100% deduction subject to maximum limit
50% deduction subject to a maximum limit
- Notified Funds and Institutions:
|
Donee |
% of donation allowed as a deduction |
|---|---|
|
National Defence Fund PM National Relief Fund PM Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND) National Children’s Fund CM Relief Fund or the Lieutenant Governor’s Relief Fund Zila Saksharta Samiti Army Central Welfare Fund Indian Naval Benevolent Fund Air Force Central Welfare Fund Andhra Pradesh CM Cyclone Relief Fund National Sports Development Fund National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Swachh Bharat Kosh (not being in pursuance of CSR) Clean Ganga Fund (not being in pursuance of CSR) Note: Donations to Swachh Bharat Kosh and Clean Ganga Fund are eligible for deduction only if the amount is not spent by the assessee in pursuance of Corporate Social Responsibility (CSR). National Fund for Control of Drug Abuse PM Drought Relief Fund Notified temple, mosque, gurudwara, church or other place (for repairs or renovation) Shri Ram Janambhoomi Teerth Kshetra [Notification S.O. 1434 (E), dated 8-5-2020] |
100% 100% 100%
100% 100% 100% 100% 100% 100% 100% 100% 100%
100% 100% (to resident assessee only) 100% 50% 50% [Note 1]
50% [Note 1] |
|
National Illness Assistance Fund National Blood Transfusion Council or State Blood Transfusion Council Fund set up by a State Government for medical relief to the poor National Cultural Fund Fund for Technology Development and Application National Foundation for Communal Harmony PM Armenia Earthquake Relief Fund Africa (Public Contributions – India) Fund CM Earthquake Relief Fund, Maharashtra A university or educational institution of National eminence approved by the tax authorities Fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat. Family Planning Association of India/Red Cross Society of India [Letter No. W. 110421/1/77-C&G(FP), dated 11-1-1977] Government or any approved local authority, institution or association to be utilised for the purpose of promoting family planning. 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 Government or any local authority to be utilised for any charitable purpose other than the purpose of promoting family planning Any corporation specified in Section 10(26BB) for promoting interest of minority community Any authority constituted in India either 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 other fund or institution fulfilling the conditions specified in Section 80G(5). |
100% 100%
100% 100% 100% 100% 100% 100% 100% 100%
100%
100% [Note 1]
100% [Note 1]
100% (to the company assessee only) [Note 1] 50% [Note 1]
50%[Note 1]
50% [Note 1]
50% [Note 1]
|
Note 1: Where the aggregate amount donated to the funds or institutes specified above exceeds 10% of the adjusted gross total income (AGTI), the amount in excess of such 10% shall not be eligible for deduction.
The adjusted gross total Income shall be computed in the manner explained in the table below:
|
Particular |
Amount |
|
Gross total income |
xxx |
|
Less: |
|
|
(a) Amount deductible under Section 80C to 80U (Except Section 80G) |
xxx |
|
(b) Share of profit in AOP eligible for rebate under Section 86 |
xxx |
|
(c) Long-term capital gains, short-term capital gains (Section 111A), and any other special income chargeable to tax under Sections 115A, 115AB, 115AC, 115ACA, 115AD and 115D |
xxx |
|
Adjusted Gross Total Income |
xxx |
- UnderSection 80G, a donor is entitled to a deduction only if the donee fund or institution complies with the conditions specified underSection 80G(5).
- One key condition is that the donee fund or institution must file a statement of donation with the Income-tax Department and furnish a certificate of donation to the donor specifying the amount received during the year. Such certificate serves as evidence to substantiate the deduction claimed.
- The claim for deduction will be allowed only on the basis of information furnished to the Income-tax Department regarding the donation.
- If an amount has been claimed and allowed as a deduction under this provision,thenno deduction is allowed for the same amount under any other provision of the Income-tax Act.
- Deduction shall not be denied to the donor on the following grounds:
If, after donation, the income of the fund or institution becomes taxable due to non-compliance with Sections 11, 12, or 12A; or
If exemption under Section 11 or 12 is denied under Section 13(1)(c) regarding income arising from investments made in concerns as referred to in Section 13(2)(h), provided such investment does not exceed 5% of the capital of the concern.