Section 80G of Income Tax Act
Under Section 80G allows a tax deduction for contributions to certain relief funds and charitable institutions.
An Individuals, Companies , Firms , Hindu Undivided Firm (HUF) , Non-Resident Indian (NRI) are can claim a deduction under this section.
Donations can be made through a cheque, a draft, or cash. However, cash donations over Rs 2,000 are not allowed as deductions.
Contributions such as food, material, clothes, medicines etc., and donations of above Rs 2,000 are not qualify for deduction.
Deduction is not applicable to donation made to religious and charitable organization outside India.
It is applicable only an Old Regime.
Donations can be broadly classified under four categories, as follows.
- Donations entitled to 100% deduction without qualifying limit.
- Donations entitled to 50% deduction without qualifying limit.
- Donations entitled to 100% deduction subject to qualifying limit.
- Donations entitled to a 50% deduction subject to the qualifying limit.
List of Donations entitled to 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 medical relief to the poor.
- National Illness Assistance Fund.
- National Blood Transfusion Council or 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 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made between January 26, 2001, and September 30, 2001).
- 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).
List of Donations entitled to 50% deduction without qualifying limit.
- Prime Minister’s Drought Relief Fund.
- Jawaharlal Nehru Memorial Fund.
- Indira Gandhi Memorial Trust.
- Rajiv Gandhi Foundation.
List of Donations entitled to 100% deduction subject to qualifying limit.
- Donations to the government or any approved local authority, institution or association to be utilized to promote family planning.
- Donation by a company to the Indian Olympic Association or any other notified association or institution established in India to develop infrastructure for sports and games in India or sponsor sports and games in India.
List of Donations entitled to 50% deduction subject to qualifying limit.
- Government or any local authority, to be utilised for any charitable purpose other than promoting family planning.
- Any authority constituted in India to deal with and satisfy the need for housing accommodation or the purpose of planning, development or improvement of cities, towns, villages or both.
- For repairs or renovation of any notified temple, mosque, gurudwara, church, or other places.