Deduction for Donations – Section 80G

Eligible Assessee – All assessees including NRI’s

Mode of Payment – If any donation is made for amount exceeding Rs. 10,000 in cash then deduction is not allowed for such donation.Donation made in kind is not eligible for any deduction. You can make donation to any fund by website http://80g.in

Amount of Deduction

Deduction under section 80G is broadly classified into four categories-

1. Donations on which 100% deduction is allowed without any qualifying limit
2. Donations on which 50% deduction is allowed without any qualifying limit
3. Donations on which 100% deduction is allowed subject to qualifying limit
4. Donations on which 50% deduction is allowed subject to qualifying limit

Donations on which 100% deduction is allowed without any qualifying limit

1. National Defence Fund set up by the Central Government

2. Prime Minister’s National Relief Fund

3. Prime Minister’s Armenia Earthquake Relief Fund

4. Africa (Public Contributions – India) Fund

5. National Children’s Fund

6. National Foundation for Communal Harmony

7. A University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf

8. any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat

9. any Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for the purposes of improvement of primary education in villages and towns in such district and for literacy and post-literacy activities.

   Explanation.—For the purposes of this sub-clause, “town” means a town which has a population not exceeding one lakh according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or

10. the National Blood Transfusion Council or to any State Blood Transfusion Council which has its sole object the control, supervision, regulation or encouragement in India of the services related to operation and requirements of blood banks.

    Explanation.—For the purposes of this sub-clause,—

    (a)  “National Blood Transfusion Council” means a society registered under the Societies Registration Act, 1860 (21 of 1860) and has an officer not below the rank of an Additional Secretary to the Government of India dealing with the AIDS Control Project as its Chairman, by whatever name called;

    (b)  “State Blood Transfusion Council” means a society registered, in consultation with the National Blood Transfusion Council, under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India and has Secretary to the Government of that State dealing with the Department of Health, as its Chairman, by whatever name called; or

11. any fund set up by a State Government to provide medical relief to the poor

12. the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare

13. Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants

14. the National Illness Assistance Fund

15. the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union territory, as the case may be :

    Provided that such Fund is—

    (a)  the only Fund of its kind established in the State or the Union territory, as the case may be;

    (b)  under the overall control of the Chief Secretary or the Department of Finance of the State or the Union territory, as the case may be;

    (c)  administered in such manner as may be specified by the State Government or the Lieutenant Governor, as the case may be

16. the National Sports Fund to be set up by the Central Government

17. the National Cultural Fund set up by the Central Government

18. the Fund for Technology Development and Application set up by the Central Government

19. the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or

20. the Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of section 135 of the Companies Act, 2013 (18 of 2013)

21. the Clean Ganga Fund, set up by the Central Government, where such assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of Corporate Social Responsibility under sub-section (5) of section 135 of the Companies Act, 2013 (18 of 2013)

    Following sub-clause (iiihm) shall be inserted after sub-clause (iiihl) of clause (a) of sub-section (2) of section 80G by the Finance Act, 2015 from Financial year 2015-16

22. the National Fund for Control of Drug Abuse constituted under section 7A of the Narcotic Drugs and Psychotropic Substances Act, 1985 (61 of 1985)

Donations on which 50% deduction is allowed without any qualifying limit

1. Jawaharlal Nehru Memorial Fund
2. Prime Minister’s Drought Relief Fund
3. National Children’s Fund
4. Indira Gandhi Memorial Trust
5. Rajiv Gandhi Foundation
6. Donations for repair/ renovation of notified places of worship
7. World Vision India
8. Udavum Karangal

Donations on which 100% deduction is allowed subject to qualifying limit

1. the Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning

2. any sums paid by the assessee, being a company, in the previous year as donations to the Indian Olympic Association or to any other association or institution established in India, as the Central Government may, having regard to the prescribed guidelines, by notification in the Official Gazette, specify in this behalf for—

    (i)  the development of infrastructure for sports and games; or

   (ii)  the sponsorship of sports and games,

   in India.

Donations on which 50% deduction is allowed subject to qualifying limit

1. Donations to govt./ local authority for charitable purposes (excluding family planning)
2. Authority/ corporation having income exempt under erstwhile section or under section 10(26BB)
3. any other fund or any institution to which this section applies
4. an authority constituted in India by or under any law enacted either 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 and villages, or for both.
5. any sums paid by the assessee in the previous year as donations for the renovation or repair of any such temple, mosque, gurdwara, church or other place as is notified by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States.

Calculation of Qualifying Limit

Qualifying limit under section 80G is 10% of adjusted gross total income.

Calculation of Adjusted gross total income:-

Gross Total Income
Less: Amount deductible under section 80C to 80U but not under sec 80G
Less: Exempt Income

Donation to any institution or fund

Donation to any institution or fund is allowed only if it is established in India for a charitable purpose and it fulfills the following condition

(i)  where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (23AA) or clause (23C) of section 10 :

Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if—

 (a)  the institution or fund maintains separate books of account in respect of such business;

 (b)  the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and

 (c)  the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;

(ii)  the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose;

(iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste. However an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply and thus donation to such fund is allowed as deduction.An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste.

(iv) the institution or fund maintains regular accounts of its receipts and expenditure;

(v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, or is an institution financed wholly or in part by the Government or a local authority;

(vi) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being approved by the Commissioner in accordance with the rules made in this behalf; and

A deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely :—

(i)  that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 11, section 12 or section 12A;

(ii) that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 or section 12 is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of sub-section (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent of the capital of that concern.