Section 80G Deduction

One of the best ways to save taxes while contributing to the world is to donate to a charity. This will give you a section 80G deduction. These must be legitimate trusts or institutions. Many of us have been thinking about contributing to society by donating to charity at some point in our lives.

It is commendable that you really believe and give it to the cause that makes a difference. Given the integrity of this gesture, the government fully supports charitable services. Section 80G of the Indian Income Tax Act allows tax credits for donations to charities. Section 80G of the Income Tax Act primarily deals with charitable donations aimed at providing tax incentives to individuals engaged in charitable activities. This section describes tax credits for donations to specific funds or charities. Amounts donated by an individual to a qualified charity are tax-deductible when filing an income tax return.  

Section 80G

Donations to certain aid funds and charities can be claimed as deductions in accordance with Section 80G of the Income Tax Act. However, not all donations are deductible in Section 80G. Only donations to the designated fund will be deducted. This deduction can be claimed by an individual, company, company, or other individual taxpayers. 

What Is The Payment Method? 

This deduction can only be claimed if the donation is paid by cheque, draft, or cash. In-kind benefits such as food, supplies, clothing, and medicines are not eligible for the Section 80G deduction. From fiscal 2017-18: Cash donations in excess of 2,000 rupees will not be deducted. Donations in excess of Rs 2,000 must be made in a non-cash manner to be eligible for the Section 80G deduction. Previously, the cash donation limit was 10,000 rupees. Donations Amount: The various donations mentioned in Section 80G can be deducted up to 100% or 50%, with or without restrictions, according to Section 80G.

How To Claim The Deduction

To be able to claim this deduction, the following details have to be submitted in your income tax return:

Name of the donee

PAN of the donee

Address of the donee

Amount of contribution – the breakup of contribution in cash and another mode

The amount eligible for deduction

Donations Eligible For 50% Deduction Without Qualifying Limit

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

Donations Eligible For 100% Deduction Without Qualifying Limit

  • National Defence Fund set up by the Central Government
  • Prime Minister’s National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National eminence
  • Zila Saksharta Samiti is constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a state government for medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or any State Blood Transfusion Council
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
  • National Sports Fund
  • National Cultural Fund
  • Fund for Technology Development and Application
  • National Children’s Fund
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
  • The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
  • The Maharashtra Chief Minister’s Relief Fund during October 1, 1993, and October 6, 1993
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
  • Any trust, institution, or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made between January 26, 2001, and September 30, 2001)
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions – India) Fund
  • Swachh Bharat Kosh (applicable from FY 2014-15)
  • Clean Ganga Fund (applicable from FY 2014-15)
  • National Fund for Control of Drug Abuse (applicable from FY 2015-16)  

Donations Eligible For 100% Deduction Subject To 10% Of Adjusted Gross Total Income

Donations to the government or all authorized local governments, institutions, or unions to promote family planning 

India’s association in India or other communicated associations or institutions to the association or institutions It was established in India to develop infrastructure for sports and games in India or India.