Section 80G of Income Tax Act Donations

Section 80G of Income Tax Act DonationsSection 80G of the Income Tax Act, 1961 is pretty famous section among salaried employees. What Section 80G gives is both Divine Benefits and Tax Benefits. In this article, we will clear every doubt you will probably have about Section 80G. We also have earlier written analysis for other Income tax provisions like Section 10, Section 80D and 194A. Section 80G deals with Income Tax Deductions for Donations made to Charity.

Introduction to Section 80G

The basic purpose of introducing this section into Income Tax Act is to promote a sense of charity among Indian Individuals. The Government alone cannot bring the upliftment of the society. With Section 80G, the Govt has planned to push this burden to the citizens.

Who can claim 80G Deduction

The Deduction is allowed to all the Assessees. In other words, not just an Individual, but any other Assessee, like a Company, Firm, HUF, BOP, AOP can claim deduction under section 80G for any Donation made to specified Charity.

Section 80G Exemption Limit

The Maximum Deduction limit that can be claimed under section 80G is 10% of Gross Total Income*

Where,

Gross Total Income = [Total Income – (80CCC to 80U Deductions + Exempt Income + LTCG + Incomes specified in 115A, 115AB, 115 AC, 115AD, 115D]

The Department has specified certain deduction limits for contributions made under section 80G of the Income Tax Act. The Deduction allowable in each situation is listed out below for your reference:

Purpose of Donation Exemption Limit
Prime Minister’s National Relief Fund  100%
National Defence Fund  50%
Jawaharlal Nehru Memorial Fund  100%
Prime Minister’s Armenia Earthquake Relief Fund  100%
Prime Minister’s Drought Relief Fund  50%
The Africa (Public Contribution – India) Fund  100%
Approved university or educational institution of national eminence  100%
The Chief Minister’s Earthquake Relief Fund, Maharashtra  100%
National Children’s Fund  50%
Donations made to Zila Saksharta Samitis  100%
Indira Gandhi Memorial Trust  50%
The National Blood Transfusion Council or a State Blood Transfusion Council  100%
The Rajiv Gandhi Foundation  50%
The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund  100%
Donations to govt./ local authority for charitable purposes (excluding family planning)  50%
Army Central Welfare Fund, Indian Naval Ben. Fund, Air Force Central Welfare Fund  100%
Authority/ corporation having income exempt under erstwhile section or u/s 10(26BB)  50%
National Illness Assistance Fund  100%
Donations for repair/ renovation of notified places of worship  50%
Chief Minister’s or Lt. Governor’s Relief Fund  100%
World Vision India  50%
National Sports Fund  100%
National Cultural Fund  100%
Udavum Karangal  50%
Govt./ local authority/ institution/ association towards promoting family planning  100%
Central Govt.’s Fund for Technology Development & Application  100%
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities  100%
 Indian Olympic Association/ other such notified association  100%
 Andhra Pradesh Chief Minister’s Cyclone Relied Fund  100%
Updated: April 15, 2018 — 5:54 pm

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