Section 80G – Deduction for Donations

Section 80G – Deduction for Donations

The Income Tax Act permits deduction while finding out the complete available pay to each assessee. One such deduction is permitted under Section 80G of the Income Tax Act, 1961 for donations made to a benevolent association or a trust. Alongside this deduction is likewise accessible for donation to an ideological group, research association, or an appointive trust.

Also, read| How to Save Tax for Government Employee

 Tax Deduction Under Section 80G Of Income Tax Act

  • Any donation made to an alleviation store or beneficent organization should meet all requirements for it. Section 80G allowance is accessible while ascertaining the absolute available pay. The accompanying conditions apply for allowances on  donations:
  • Few out of every odd donation meets all requirements for a 100% Each assessee should allude to the eligibility of the association while guaranteeing an allowance to claim donation under Section 80G.
  • Any assessee can guarantee deduction for example singular citizen, Indian organizations, association firm, etc.
  • Donations made in an actual amount exceeding Rs.2,000 are not eligible for allowance under the section 80g donation limit.
  • Any donation made for like garments, food, drugs, and so forth doesn’t qualify as a  deduction or tax reduction.
  • The donation shifts according to the eligibility models. The allowance can be 100% or half with or without limitation according to the arrangements of Section 80G.

What Is The Eligible Sum Under Section 80G For Donations?

  • According to the arrangements of Section 80G, a few out of every odd donation meets all requirements for a 100%   It relies upon the eligibility of the association to which donation is made. The association’s eligibility is the central consideration for a tax break. Further, the allowance could be 100% or half with or without limitations.
  • The eligible sum is the sum that is permitted as an allowance against the   Each assessee should ascertain the eligible sum cautiously to keep away from any distortion in the annual government form.

How To Claim Deduction Under Section 80G?

To claim a deduction under Section 80G every assessee must fill the below details in the income tax return:

  • The amount of donation.
  • Name and address of the donee.
  • PAN of the donee.
  • It is not required to submit the receipt of the donation. However, it is advisable to always save the donation receipt mentioning the amount of donation and PAN of the donee.

Donations Eligible For 100% Deduction Subject To 10% Of Adjusted Gross Total Income

  • The public authority or any endorsed neighborhood authority, organization, or relationship to be used to advance family arranging.
  • donation by a Company to the Indian Olympic Association or some other informed affiliation or organization set up in India. The design is for the improvement of the framework for sports and games in India, or the sponsorship of sports and games in India.

Donations Eligible For Half Deduction Subject To 10% Of Adjusted Gross Total Income

  • Some other asset or any foundation which fulfills the conditions referenced in Sec 80G(5)
  • Government or any neighborhood authority, to be used for any beneficent reason other than the motivation behind advancing family arranging
  • Any power comprised in India to manage and fulfilling the requirement for lodging convenience. Moreover, to plan, advance, or improvement of urban areas, towns, towns, or both.
  • Any organization is alluded to in Section 10(26BB) for advancing the interest of the minority local area.
  • For fixes or redesign of any advised sanctuary, mosque, gurudwara, church, or different spots.

Tax Exemption u/s 80GGA Of Income Tax Act, 1961

  • Section 80GGA of the Income Tax Act accommodates allowance while figuring the absolute available pay against donations made in the monetary year. Coming up next are a couple of conditions for allowances on  donations:
  • The donation should be made to an affiliation or an association whose fundamental goal or design is a logical examination or country advancement.
  • The affiliation or association should be endorsed by the personal expense division for this reason.
  • To guarantee the deduction, the particular affiliation or association should stay supported while making the
  • Where an assessee guarantees a deduction under Section 80GGA, he/she can’t guarantee this allowance under some other arrangements of the Income Tax Act, 1961.
  • Any assessee can guarantee allowance except the assessee who has a pay (or misfortune) from a business or potentially a calling
  • A money donation eligible 2000 in a monetary year will be refused as an allowance
  • Also, 100% of the donation is qualified for  deduction
  • donations Qualify for Deduction u/s 80GGA
  • Any total paid to an examination affiliation that attempts logical exploration, or a total paid to a school, college, or some other foundation. The donation is to be utilized for logical examination that is completely endorsed by the recommended authority under section 35(1)(ii).
  • An exploration affiliation that embraces research in sociology or factual examination, or total paid to a school, college, or some other foundation. The donation to be utilized for a similar reason, and these must all be endorsed by the recommended authority under  section 35(1)(iii)
  • Total paid to a supported affiliation or organization which attempts any program of provincial turn of events and is endorsed under area 35CCA
  • Aggregate paid to an endorsed affiliation or organization which attempts preparing of the person(s) for executing projects of provincial turn of events
  • A public area organization, nearby power, or an endorsed affiliation or foundation which completes undertakings or plans supported under section 35AC.
Sr. No. Name Of The Charity Subject To Limit % that qualifies for a Tax Deduction
1 Welfare Fund of Armed Forces No 100
2 Chief Minister’s Relief Fund (LG’s) of any State (Union Territory) No 100
3 National Illness Assistance Fund No 100
4 National Trust for the well-being of people having cerebral palsy, Autism, multiple disabilities, and Mental Retardation No 100
5 CM’s Earthquake Relief Fund, Maharashtra No 100
6 Fund for Development of Technology and Application No 100
7 National Blood Transfusion Council No 100
8 National Children’s Fund No 100
9 Zila Saksharta Samiti No 100
10 Fund for Providing Medical Assistance to Poor by the State Government No 100
11 Rajiv Gandhi Foundation No 50
12 Jawaharlal Nehru Memorial Fund No 50
13 PM’s Drought Relief Fund No 50
14 Indira Gandhi Memorial Trust No 50
15 Indian Olympic Association Yes 100
16 Swachh Bharat Kosh No 100
17 Approved University or Educational Institution of National Importance like IIT, NIT, etc. No 100
18 National Cultural Fund No 100
19 PM’s National Relief Fund No 100
20 Clean Ganga Fund No 100



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Nikita Dhyani

Nikita Dhyani is a Content Writer at Ionic Digitech. A passionate content writer and has been using her content writing skills to develop various content related to financial and business-related topics. She has done BAJMC (Bachelors in media and mass communication and journalism) from Graphic Era University. Her specialties include - Content creation, Content development, Media managing, Communications skills.

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