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80G Deduction against donations to certain funds, charitable institutions, etc as per section 80G, chapter via of Income Tax Act

 

The Assessee who has paid donation to certain funds or charitable institutions can claim deduction under section 80G.

Amount of deduction will be 100% or 50% as specified in the sub-sections. Amount exceeding Rs. 10000 should be paid in the form other than cash.

 

 

 

Provisions in the Income Tax Act related to Section 80G are:

80G Deduction in respect of donations to certain funds, charitable institutions, etc.
(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,-

(i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum or sums of the nature specified in sub-clause (i) or in sub-clause (iiia) or in sub-clause (iiiaa) or in sub-clause (iiiab) a[or in sub-clause (iiib) [or in sub-clause (iiie)] [or in sub-clause (iiif)] [or in sub-clause (iiig)] [or in sub-clause (iiiga)] or [sub-clause (iiih) or] [sub-clause (iiiha) or sub-clause (iiihb) or sub-clause (iiihc)[or sub-clause (iiihd)] [or sub-clause (iiihe)] [or sub-clause (iiihf)] [or sub-clause (iiihg) or sub-clause (iiihh)] [or sub-clause (iiihi)] [or sub-clause (iiihj)] or] in] sub-clause (vii) of clause (a) [or in clause (c)] [or in clause (d)]thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent of the balance of such aggregate; and

(ii) in any other case, an amount equal to fifty per cent of the aggregate of the sums specified in sub-section (2).

(2) The sums referred to in sub-section (1) shall be the following, namely :-

(a) any sums paid by the assessee in the previous year as donations to-

(i) the National Defence Fund set up by the Central Government; or

(ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of Trust adopted by the National Committee at its meeting held on the 17th day of August, 1964; or

(iii) the Prime Minister's Drought Relief Fund; or
(iiia) the Prime Minister's National Relief Fund; or]
(iiiaa) the Prime Minister's Armenia Earthquake Relief Fund; or]
(iiiab) the Africa (Public Contributions - India) Fund; or]
(iiib) the National Children's Fund; or]
(iiic) the Indira Gandhi Memorial Trust, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of February, 1985; or]
(iiid) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of June, 1991; or]
(iiie) the National Foundation for Communal Harmony; or]
(iiif) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or]
(iiig) the Maharashtra Chief Minister's Relief Fund during the period beginning on the 1st day of October, 1993 and ending on the 6th day of October, 1993 or to the Chief Minister's Earthquake Relief Fund, Maharashtra; or]
(iiiga) any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat; or]
(iiih) 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

(iiiha) 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

(iiihb) any fund set up by a State Government to provide medical relief to the poor; or

(iiihc) the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants; or

(iiihd) the Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996; or

(iiihe) the National Illness Assistance Fund; or

(iiihf) 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; or

(iiihg) the National Sports Fund to be set up by the Central Government; or

(iiihh) the National Cultural Fund set up by the Central Government; or

(iiihi) the Fund for Technology Development and Application set up by the Central Government; or

(iiihj) 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

(iv) any other fund or any institution to which this section applies; or

(v) the Government or any local authority, to be utilised for any charitable purpose [other than the purpose of promoting family planning; or

(vi) 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;

[(via) any corporation referred to in clause (26BB) of section 10; or

(vii) 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;

 

 

 

(b) 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;

(c) 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;
(d) any sums paid by the assessee, during the period beginning on the 26th day of January, 2001 and ending on the 30th day of September, 2001, to any trust, institution or fund to which this section applies for providing relief to the victims of earthquake in Gujarat.

(3) [Omitted by the Finance Act, 1994, w.e.f. 1-4-1994.]

(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), (vi) , (via) and (vii) of clause (a) and in [clauses (b) and (c)] of sub-section (2) exceeds ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1).

(5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :-
(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;
(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 2588of 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
(vii) where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso to clause (15) of section 2, be deemed to have been,-
(a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and
(b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009.]
(5A) Where a deduction under this section is claimed and allowed for any assessment year in respect of any sum specified in sub-section (2), the sum in respect of which deduction is so allowed shall not qualify for deduction under any other provision of this Act for the same or any other assessment year.]
(5B) Notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, 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.]
(5C) This section applies in relation to amounts referred to in clause (d) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpose and it fulfils the following conditions, namely :-
(i) it is approved in terms of clause (vi) of sub-section (5);
(ii) it maintains separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat;
(iii) the donations made to the trust or institution or fund are applied only for providing relief to the earthquake victims of Gujarat on or before the 31st day of March, [2004];
[(iv) the amount of donation remaining unutilised on the 31st day of March, [2004] is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, [2004];]
(v) it renders accounts of income and expenditure to such authority3 and in such manner as may be prescribed4, on or before the 30th day of June, [2004]
[(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash.

Explanation 1.-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 within the meaning of clause (iii) of sub-section (5).

Explanation 2.-For the removal of doubts, it is hereby declared that 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.

Explanation 3.-In this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature.

Explanation 4.-For the purposes of this section, an association or institution having as its object the control, supervision, regulation or encouragement in India of such games or sports as the Central Government may, by notification in the Official Gazette10, specify in this behalf, shall be deemed to be an institution established in India for a charitable purpose.

Explanation 5.-For the removal of doubts, it is hereby declared that no deduction shall be allowed under this section in respect of any donation unless such donation is of a sum of money.

Income Tax Deductions under Chapter VIA

Section 80A Deductions to be made in computing taxable income as per section 80A, chapter via of Income Tax Act

Section 80AB Any deduction is required to be made or allowed under any section included in Chapter VIA under the heading "C"

Section 80AC Income Tax return needs be filed before due date to get deduction under few sections of VIA

Section 80B meaning of Gross Total Income under Income Tax Act

Section 80C Deduction in respect of LIC Premia, deferred annuity, PF contributions subscription to certain equity shares or debentures, etc.

Section 80CCA Deduction available to assessee in respect of deposits under National Savings Scheme or payment to a deferred annuity plan

Section 80CCB Deduction in respect of investment made under Equity Linked Savings Scheme

Section 80CCC Deduction in respect of contribution to certain pension funds

Section 80CCD Deduction in respect of contribution to pension scheme of Central Government

Section 80CCE Limit on deductions under sections Section 80C, 80CCC and 80CCD

Section 80CCG Deduction in respect of investment made under an equity savings scheme

Section 80D Deduction in respect of health insurance premia

Section 80DD Deduction of of maintenance including medical treatment of a dependant person with disability

Section 80DDB Deduction against Medical Treatment Expenses etc incurred

Section 80E Deduction against interest on loan taken for higher education

Section 80EE Deduction against interest on loan taken for residential house property

Section 80G Deduction against donations to certain funds, charitable institutions, etc

Section 80GG Deductions against rents paid

Section 80GGA Deduction in respect of certain donations for scientific research or rural development

Section 80GGB Deduction in respect of contributions given by companies to political parties

Section 80GGC Deduction against contributions given by any person to political parties

Section 80HH Deduction against profits and gains from newly established industrial undertakings or hotel business in backward areas

Section 80HHA Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas

Section 80HHB Deduction in respect of profits and gains from projects outside India

Section 80HHBA Deduction against profits and gains from housing projects in certain cases

Section 80HHC Deduction in respect of profits retained for export business

Section 80HHD Deduction of earnings in convertible foreign exchange

Section 80HHE Deduction of profits from export of computer software

Section 80HHF Deduction of profits and gains from export or transfer of film software, etc

Section 80I Deduction profits and gains from industrial undertakings after a certain date, etc

Section 80IA Deductions of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc

Section 80IAB Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone

Section 80IB Deduction of profits and gains from certain industrial undertakings other than infrastructure development undertakings

Section 80IC Special provisions of certain undertakings or enterprises in certain special category States

Section 80ID Deduction of profits and gains from business of hotels and convention centres in specified area

Section 80IE Special provisions in respect of certain undertakings in North-Eastern Statesa>

Section 80JJA Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste

Section 80JJAA Deduction of employment of new workmen

Section 80LA Deductions of certain incomes of Offshore Banking Units and International Financial Services Centre

Section 80O Deduction of royalties, etc., from certain foreign enterprises

Section 80P Deduction of income of co-operative societies

Section 80Q Deduction of profits and gains from the business of publication of books

Section 80QQA Deduction of professional income of authors of text books in Indian languages

Section 80QB Deduction of royalty income, etc., of authors of certain books other than text-books

Section 80R Deduction of remuneration from certain foreign sources in the case of professors, teachers, etc

Section 80RR Deduction of professional income from foreign sources in certain cases

Section 80RRA Deduction of remuneration received for services rendered outside India

Section 80RRB Deduction of royalty on patents

Section 80TTA Deduction of interest on deposits in savings account

Section 80U Deduction in case of a person with disability

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