100 per cent/50 percent or 10 percent of the Gross Total Income
To encourage people to donate, the Indian government allows for income tax deductions under Section 80G for the amount which has been donated. The amount donated by a person is allowed to be claimed as a deduction under Section 80G, at the time of filing his income tax return.
This deduction for donation can be claimed by any taxpayer (whether individual, partnership firm, HUF, company etc) irrespective of whether he is earning income from his salary or business. The deduction available under Section 80G is over and above the deduction of Rs. 1 lakh allowed under Section 80C. Let’s try to know more about deduction under Section 80G.
Donations made by an assessee are eligible to be claimed as deduction under Section 80G in all cases. However, where donation has been made in kind for instance food, clothes, medicine etc, these donations are not eligible for deductions. In order to claim this deduction, the donor is required to furnish the proof of payment. A stamped receipt is issued by the recipient trust in this regard, details of which should be mentioned by the taxpayer while filing his income tax return.
The receipt should mention the following details:
Name and address of the trust / NGO
Name of the donor
Amount donated (mentioned in words and figures)
Registration number of the trust, as given by the income tax department u/s 80G along with its validity
100% deduction without any limit
In some cases, full deduction is allowed for the total amount donated i.e. 100% deduction without any limit. Some of the donations eligible for 100% deduction u/s 80G include:National Defence Fund set by the central government, Prime Ministers National Relief Fund, Prime Ministers Armenia Earthquake Relief Fund and National Foundation for Communal Harmony among others.
50% deduction without any limit
Trusts or non-governmental organizations which provided 50% deductions on the total amount paid by the assessee include Jawaharlal Nehru Memorial Fund, PM Drought Relief Fund, National Children Fund, Indira Gandhi Memorial Trust and Rajiv Gandhi Foundation.
Conditions for claiming deduction :
Donation is allowable to all types of assessee, but not to any donation made to a foreign trust or a political party.
A stamped Receipt should be collected from the trust to whom donation made. The receipt should contain details of the trust like PAN No., Name, Address,Registration No., Registration validity. It should also include details such as – Name of donor, Amount donated (in figures & words).
A copy of 80 G certificate should be obtained.
In case of Donations qualifying for 100% deductions Form 58 should also be obtained.
For donations above Rs. 10,000 deduction allowed only if amount paid in mode other than cash.
Donations in kind do not qualify for deduction.
For other trusts registered in India, those with the 80G certificate only qualify for deduction. (Govt. releases list of such approved trusts)
For deductions with Qualifying Limit, the amount of deduction is lower of –
10% of Adjusted Gross Total Income, OR
Amount of donation made
where, Adjusted Gross Total Income =
Adjusted GtI cal
List of trusts –
100% deduction without any Qualifying limit :
National Defence Fund set by the Central Govt.
Prime Minister’s National Relief Fund.
Prime Minister’s Armenia Earthquake Relief Fund.
National Foundation for Communal Harmony.
University/ Education Institution of National eminence approved by the prescribed authority.
Maharashtra Chief Minister’s Earthquake Relief Fund.
Any Fund set-up by the State Govt of Gujarat, exclusively for providing relief to the victims of earthquake of Gujarat.
Zila Saksharta Samiti constituted in any district.
National Blood Transfusion Council or any State Blood Transfusion Council.
Any fund set up by the state Govt to provide Medical Relief to the poor.
Army Central Welfare Fund or Indian Naval Benevolent Fund or the Air Force Central Welfare Fund.
National Illness assistance Fund.
Andhra Pradesh Chief Minister’s Cyclone Relief Fund.
Chief Minister Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Territory.
National Sports Fund set up by the Central Govt.
National Cultural Fund set up by the Central Govt.
Fund for Technology Development and Application, set up by the Central Govt.
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.
50% deduction without any Qualifying Limit –
Jawaharlal Nehru Memorial Fund.
Prime Minister’s Drought Relief Fund.
National Children’s Fund.
Indira Gandhi Memorial Fund.
Rajiv Gandhi Foundation.
100% deduction with Qualifying Limit –
Donation to Government or any approved local authority, institution or association to be utilised for promoting family planning.
Any sums paid by a company to Indian Olympic Association or to any other association notified by the Central Govt. for the purpose of development of infrastructure for sports and games or for the sponsorship of sports and games.
50% deduction with Qualifying Limit –
Donation to Government or any approved local authority, institution or association to be utilised for any charitable purpose other than promoting family planning.
Donation to any authority constituted in India by or under any law for satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages or for both.
To any corporation established by the Central or any State Govt for promoting the interests of the members of a minority community.
Any notified temple, mosque, gurdwara, church or other place notified by the Central Govt to be of historic, archaeological or artistic importance for renovation or repair of such place.