Income Tax deductions for Donations under Section 80G

Donation Section 80G

Donation Under Section 80G are Income Tax exempt

Section 80G offers a tax deduction for donations to certain prescribed funds and charitable institutions. Here are the details of the section.

New change in Budget 2012-Any payment exceeding Rs 10,000/- shall only be allowed as deduction under section 80G and 80GGA if such amount is paid by any other mode than cash . This change is appplicable from financial year 2012-2013.

Eligible Assesses

This section is applicable to all assessees, who make an eligible donation, whether an individual, HUF, NRI or a company.

 Deduction Limit

The extent of deduction is either 50% or 100% of the contribution, depending on the charitable institution donated to.

For certain funds, the aggregate deduction is limited to 10% of the “Adjusted Gross Total Income”. So, in such cases, even if you do make a donation larger than 10% of your Adjusted Gross Total Income, the donation amount eligible for claiming a deduction would be capped at 10% of the Adjusted Gross Total Income.

The Adjusted Gross Total in this case, is the gross total income minus long-term capital gain, short term capital gain and all deductions u/s 80CCC to 80U except any deduction under this section.

Scope of Deduction

  • The donation may be paid either out of taxable or exempted income.
  • Only donations made in cash or cheque are eligible for deductions. Donations made in kind, in the form of food, clothing, medicines etc are not eligible.
  • Donations to foreign charitable trusts or to political parties are not eligible for any deduction.
  • For donations made to Indian Olympic Association, any association notified u/s 10(23) for development of infrastructure for sports or games, or for sponsorship of sports or games, only a company is eligible for deduction.
  • Donations made to not all charitable institutions qualify for a deduction. Here is a list of approved charitable institutions and funds that qualify for a deduction.

Donations with 100% deduction without any qualifying limit:

  • Prime Minister’s National Relief Fund
  • National Defence Fund
  • Prime Minister’s Armenia Earthquake Relief Fund
  • The Africa (Public Contribution – India) Fund
  • The National Foundation for Communal Harmony
  • Approved university or educational institution of national eminence
  • The Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Donations made to Zila Saksharta Samitis.
  • The National Blood Transfusion Council or a State Blood Transfusion Council.
  • The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.

Donations with 50% deduction without any qualifying limit.

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • National Children’s Fund
  • Indira Gandhi Memorial Trust
  • The Rajiv Gandhi Foundation

Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income

  • Donations to the Government or a local authority for the purpose of promoting family planning.
  • Sums paid by a company to Indian Olympic Association

Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income

  • Donation to the Government or any local authority to be utilized by them for any charitable purposes other than the purpose of promoting family planning.

14 Responses to Income Tax deductions for Donations under Section 80G

  1. sandeep says:

    what is the tax deduction to donation in spiritual trust like brahmakumaris, swami narayan.

    kindly guide me.

    • Income Tax Buddy says:

      Donation made to trust generally give you 50% deduction from your total income. Exact deduction amount can be ascertain from the receipt issued by these trust.

  2. Rajveer says:

    sir, i have dinated Rs 50000 to a educational trust, what will be the eligible tax deduction?

    • Tax Dost says:

      You will get income tax beenfit under section 80G only if the trust has applie for section 80G tax benefit , with income tax officer. Please check with the trust to whom you made the donation.

  3. Ramya says:

    How to include 80-G while e-filing?
    Do we need to submit any proof for 80-G when i do e-filing?

    • Tax Dost says:

      When you are filing online return there is separate section for 80G deduction, Please fill in the details in this section.

      NO document is required to be attached while submitting your ITR V

      • Ramya says:

        Thanks :) But there is no field for Receipt number. So just entering the Name, Address, City, State, Pincode and PAN of donee should work right?

  4. Sainath K says:

    80 G section is greyed and it is not allowing to enter the amount donated to get the tax relief while e-returning Why is this?

  5. sachchidanand says:

    I donated 18000 rupees by cash to a temple . Can i get benifit of 80G and how?

    • Tax Dost says:

      No you can not take benefit of 80G is donation is paid in cash and you dont have a receipt for this donation

  6. Venugopal Pisharody says:

    Donations to the following are eligible for 50% deduction subject to a maximum of 10% of adjusted Gross taxable income:
    What does the above mean. In some cases deductions are made as per above statement, i.e minimum of 50 % of donation or 10 % of adjusted gross taxable income. In many other cases deductions are made as maximum of 50% of 10% (i.e 5%) of adjusted gross taxable income. Which one of the above is true.

  7. Israr Husain says:

    I donate Rs. 12000/- to a Madarsa for education of poor children. Madarsa has provide me reciept. How much amount i get deduction from tax

    • Tax Dost says:

      If Madrasa is registered with Income tax authirty for 80G dedcution, then you can get deduction of 50% of donation from your total income.

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