Section 80G Exemption To Donor | Semantic Taxgen Pvt Ltd

Section 80G Exemption To Donor

About Donations Eligible Under Section 80G

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About Section 80G

India is a country of beliefs and devotion. It is an age-long practice of making donations and contributions for good causes in good faith to earn solemn requital for good deeds in India. People of India have been donating in cash and in kind to various trusts, NGOs, charitable organizations, temples etc. sometimes out of kindness, sometimes out of faith. But did you know that these contributions done for the sake of humanity can help you save tax? Here’s how:
As per the provisions of section 80G of Income-tax Act, 1961, deductions are available for donations to certain notified funds, charitable institutions or other institutions/ funds set up by the Government of India. 
This deduction can be claimed by any taxpayer – individuals, company, firm or any other person.

This deduction can only be claimed when the contribution has been made via a cheque or a draft or in cash. But the deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food, material, clothes, medicines etc. do not qualify for deduction under section 80G.From Financial Year 2017-18 onwards: Any donations made in cash exceeding Rs 2,000 will not be allowed as deduction. The donations above Rs 2,000 should be made in any mode other than cash to qualify as a deduction under section 80G.Amount of Donation: The various donations specified in section 80G are eligible for a deduction of up to either 100% or 50% with or without restriction, as provided in section 80G.

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
  • 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 constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a State Government for the medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or to 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 during January 26, 2001, and September 30, 2001) or
  • 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)
  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • Indira Gandhi Memorial Trust
  • Rajiv Gandhi Foundation

Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assessees except those who have an income (or loss) from a business and/or a profession.Mode of payment: Donations can be made in the form of a cheque or by a draft or in cash; however cash donations in excess of Rs 10,000 are not allowed as deductions. 100% of the amount that is donated or contributed is considered eligible for deductions.

  • Any sum paid to a research association which undertakes scientific research, or a sum paid to a college, university or any other institution to be used for scientific research that is all approved by the prescribed authority under section 35(1)(ii)
  • Sum paid to a research association which undertakes research in social science or statistical research, or sum paid to a college, university or any other institution to be used for the same purpose,  and these must all be approved by the prescribed authority under section 35(1)(iii)
  • Sum paid to an approved association or institution which undertakes any program of rural development and is approved under section 35CCA
  • Sum paid to an approved association or institution which undertakes training of person(s) for implementing programs of rural development
  • Sum paid to a public sector company, local authority or an approved association or institution which carries out projects or schemes approved under section 35AC.
  • Sum paid to notified Rural Development Fund
  • Sum paid to notified Fund for Afforestation
  • Sum paid to notified National Poverty Eradication Fund

If a deduction has been allowed under section 80GGA, such expenses shall not be deductible under any other provision of the income tax act.

Proof of Payment in case the employer donates by way of consolidated cheque?

In case where donations/ contributions are made to:

– National Defence Fund

– Army Central Welfare Fund

– Indian Naval Benevolent Fund

– Air Force Central Welfare Fund

– National Relief Fund

– Chief Ministers Relief Fund

– Lieutenant Governors Relief Fund

through the employer by a consolidated cheque, the proof of payment will be the certificate issued by DDO/ Employer in this behalf and accordingly, deduction will be available on the basis.

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