DEDUCTION U/S 80 G : DONATION TO SPECFIED INSTITUTIONS

DEDUCTION U/S 80 G : DONATION TO SPECFIED INSTITUTIONS

Who can claim this deduction

1.        Individuals

2.        Companies

3.        Firms

4.        Hindu Undivided Firm (HUF)

5.        Non-Resident Indian (NRI)

6.        Any other person

Essential Conditions

Ø  Sum of money not in kind

Ø  Should me made to specified institutions.

Ø  Any tax payer can claim

Ø  Proof of payment is essential

Ø  It is divided into three:

A.    100% qualifying and 100 % deductible

B.     100 % qualifying and 50% eligible for deduction

C.     Restricted donations

A.100% qualifying and 100 % deductible

1.      PM CARES Fund (Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund)

2.      Prime Minister’s National Relief Fund (PMNRF)

3.      National Defence Fund (set up by the Central Government)

4.      National Children's Fund

5.      National Foundation for Communal Harmony

6.      Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund (of any State or Union Territory)

7.      The Army Central Welfare Fund, Indian Naval Benevolent Fund, or the Air Force Central Welfare Fund

8.      National Illness Assistance Fund (formerly known as Rashtriya Arogya Nidhi)

9.      National Blood Transfusion Council or any State Blood Transfusion Council

10.  National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities

11.  National Sports Fund (set up by the Central Government)

12.  National Cultural Fund (set up by the Central Government)

13.  Swachh Bharat Kosh (applicable to all taxpayers, but note that CSR spends by companies do not qualify here)

14.  Clean Ganga Fund (applicable to resident taxpayers; CSR spends do not qualify)

100 % qualifying and 50% eligible for deduction

a.       Jawaharlal Nehru Memorial Fund (Benefit removed)

  1. Indira Gandhi Memorial Trust (Benefit removed)
  2. Rajiv Gandhi Foundation (Benefit removed)

C.Restricted donations

In the context of Section 80G, "Restricted Donations" refer to contributions that are subject to a Qualifying Limit. Unlike the "No Limit" funds (like PM CARES), these donations have a ceiling: the total deduction cannot exceed 10% of your Adjusted Gross Total Income (AGTI).

These are divided into two sub-categories: 100% Deductible (Restricted) and 50% Deductible (Restricted).

Category III: 100% Deduction (Subject to 10% AGTI Limit)

1.      Donations to the Government or any local authority to be utilized for the purpose of promoting family planning.

2.      Donations by a Company to the Indian Olympic Association or any other notified association/institution established in India

Category IV: 50% Deduction (Subject to 10% AGTI Limit)

1.        Registered Charitable Trusts / NGOs:

2.        Notified Religious Institutions

3.        Housing Development Authorities

4.        Corporations for Minority Interests

5.        Government/Local Authority for Charitable Purposes

Eligibility: Least of the following

1.      Actual Amount donated                                             XXX

Or

2.      10 % of adjusted gross total income                         XXX

(GTI- LTCG, STCG-80 C to 80 U)

 

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