1.Eligible Contributions: Assessees are entitled to deduction u/s 80G if they have contributed to or donated to Approved Funds and Charitable Institutions.
2. Conditions:
- Donations should be made in sum of money and not in kind.
- The assessee should produce proof of payment along with return of income
3. Meaning of Charitable Institution: Charitable Institution includes Funds / Institutions which incurs any expenditure for an amount not exceeding 5% of its total income for any religious nature.
Note:
- Donations made out of earlier year income or out of income exempt from tax are entitled for deduction u/s 80G
- Donations paid to trust, which is subsidiary for religious purpose not allowable u/s 80G (5).
No Ceiling limit on Donation- Deduction restricted to 50% of amount donated:
Donations to the following funds will qualify for unrestricted 50% of the amount donated-
- Jawaharlal Nehru Memorial Fund
- PM Drought Relief Fund
- National Children’s Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
- No ceiling limit on Donation- Deductions at 100% of the amount donated, if amount is donated to the following funds/ institutions –
- National Defense Fund
- Prime Minister’s National Relief Fund
- Prime Minister’s Armenia Earthquake Relief Fund
- Africa (Public Contributions) India Fund
- National Foundation for Communal Harmony
- Approved Universities/ Educational Institutions of National Eminence
- Maharashtra Chief Minister’s Earthquake Relief Fund
- National/State Blood Transfusion Council
- Zilla Sakshartha Samithi of any District
- Any fund set up by a State Govt. for providing medical relief to the poor
- Army Central Welfare Fund, Air Force Central Fund or Indian Naval Benevolent Fund
- Andhra Pradesh Chief Minister’s Cyclone Relief Fund
- National Illness Assistance Fund
- Chief Minister’s/ Lieutenant Governor’s Relief Fund for any State / Union Territory
- National Sports Fund
- National Trust for Welfare of persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
- Gujarat Relief Fund
- Fund for Technology and Application
- National Cultural Fun
