Section 80G: Deduction for Donation to charitable organisations
Section 80G of the Income Tax Act allows deductions for contributions made to certain relief funds and charitable institutions. This deduction can be claimed by individuals, HUFs and businesses. However, not all donations are eligible for deductions under section 80G. Only donations made to prescribed funds by the government of India qualify as a deduction.
How to claim deduction u/s 80G?
Section 80G are available to all the types of taxpayers.
Even the mode of payment is an important thing while considering deductions. The deductions can only be claimed when the mode of payment is Cheque or Draft or Cash. However, the cash payment exceeding Rs. 10,000 is not deductible. Similarly, other materials such as food, clothes, or medicines are not considered for deductions under Section 80G.
In order to claim the deduction under Section 80G, one needs to submit the following details:
- Name of Donee
- PAN of Donee
- Address of Donee
- Amount Donated
Eligibility for deduction u/s 80G
Tax Deduction on Donation
List of funds eligible for deduction u/s 80G
Donations with 100% Income Tax Deduction without any qualifying limit:
- National Defense 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 earthquake in Gujarat
- Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of 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 financial year 2014-15)
- Clean Ganga Fund (applicable from financial year 2014-15)
- National Fund for Control of Drug Abuse (applicable from financial year 2015-16)
Donations with 50% Income Tax Deduction without any qualifying limit.
- Jawaharlal Nehru Memorial Fund
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- The Rajiv Gandhi Foundation
Donations with 100% Income Tax Deduction subject to 10% of adjusted gross total income
- Government or any approved local authority, institution or association to be utilised 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 with 50% Income Tax Deduction subject to 10% of adjusted gross total income
- Any other fund or any institution which satisfies 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 in Section 10(26BB) for promoting the interest of minority community
- For repairs or renovation of any notified temple, Mosque, Gurudwara, Church or other place.
Frequently Asked Questions
1. Can I claim deduction for a donation made in cash for Rs. 25,000
As per Income Tax Act, any donations made by cash in excess of Rs. 10,000 will not be allowed as deduction u/s 80G. So you can claim maximum deduction of Rs. 10,000 for cash donations whereas there is no such limit for donations made by cheque or draft or bank transfer.
2. What is the limit for deductions allowed u/s 80G
There is no upper limit set under section 80G for claiming deduction for donations made to charitable organisations. As long as you have taxable income to claim deduction from, there is no limit on amount of deduction to be claimed u/s 80G.