Section 80G - Deduction for Donation to charitable institutions

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Section 80G of the Income Tax Act, 1961 is a provision that allows individuals and organizations to claim deductions on donations made to certain charitable institutions or funds. It encourages individuals to contribute to social causes and provides tax benefits for such contributions.

Here are some key points about Section 80G:

Eligible Donations: The section covers donations made to specified funds, institutions, or organizations that have been approved by the Income Tax Department. These include funds for charitable purposes, relief of the poor, scientific research, rural development, preservation of natural resources, etc.
Deduction Limits: The amount of deduction allowed under Section 80G depends on the type of recipient organization and the prescribed limits. The deduction can be either 100% or 50% of the donated amount. Some funds may have a limit on the maximum deduction that can be claimed.
Mode of Payment: Donations made in cash exceeding Rs. 2,000 are not eligible for deduction under Section 80G. Payments made through modes like cheque, demand draft, or electronic transfer are eligible for deduction.
Receipts and Documents: To claim the deduction, you need to obtain a valid receipt or certificate from the organization to which you made the donation. This document should have the name, address, PAN of the organization, and the amount donated. It should also specify that the organization is eligible for tax exemption under Section 80G.
Filing of Income Tax Return: When filing your income tax return, you need to provide details of the eligible donation in the Section 80G schedule. Ensure that you keep the donation receipt and other relevant documents for future reference or in case of an audit.

It’s important to note that not all donations are eligible for deduction under Section 80G. The Income Tax Department maintains a list of approved organizations and funds that qualify for deductions. It is advisable to check the eligibility of the recipient organization before making a donation to ensure that you can claim the deduction.

List of Qualified Donations:

100%  Deductible without Qualifying Limit

National Defence Fund,
Prime Minister’s National Relief Fund,
Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)
Prime Minister’s Armenia Earthquake Relief Fund,
Africa (Public Contributions – India) Fund,
National Children’s Fund (from 1-4-2014),
Government or approved association for promoting family planning,
universities and approved educational institutions of national eminence,
National Foundation for Communal Harmony,
Chief Minister’s Earthquake Relief Fund (Maharashtra),
Zila Saksharta Samitis,
National or State Blood Transfusion Council,
Fund set up by State Government to provide medical relief to the poor,
Army Central Welfare Fund,
Indian Naval Benevolent Fund and Air Force Central Welfare Fund,
Andhra Pradesh Chief Minister’s Cyclone Relief Fund,
National Illness Assistance Fund,
Chief Minister’s Relief Fund or the Lt. Governor’s Relief Fund in respect of any State or Union Territory,
National Sports Fund,
National Cultural Fund, Fund for Technology Development and Application,
Indian Olympic Association, etc.
fund set up by State Government of Gujarat exclusively for providing relief to victims of earthquake in Gujarat,
National Trust for Welfare of Persons with Autism,
Cerebral palsy,
Mental retardation and Multiple Disabilities, and sums paid between 26-1-2001 and 30-9-2001 to any eligible trust, institution or fund for providing relief to Gujarat earthquake victims
the Swachh Bharat Kosh and the Clean Ganga Fund (from assessment year 2015-16) and
National Fund for Control of Drug Abuse (from assessment year 2016-17) [subject to certain conditions and limits]

50% Deductible without Qualifying Limit

Jawaharlal Nehru Memorial Fund.
Prime Minister’s Drought Relief Fund.
Indira Gandhi Memorial Trust.
Rajiv Gandhi Foundation.

100% Deductible Subject to Qualifying Limit

Donations to 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 are entitled for 100 percent deduction subject to qualifying limit of 10 percent of adjusted gross total income.

50% Deductible Subject to Qualifying Limit

Any fund or any institution established for charitable purposes and approved by the Commissioner of Income-Tax, which is constituted as a
1. Public charitable trust; or
2. Registered under the Societies Registration Act, 1860; or
3. Registered under section 8 of the Companies Act, 2013; or
4. 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
5. Is an institution financed wholly or in part by the Government or a local authority.
Government or any local authority, to be utilised for any charitable purpose other than the purpose of promoting family planning.
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.
Any corporation for promoting interest of minority community.
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.