Section 80G of Income Tax Act - Complete guide to eligibility & exemptions -

In this post, we will discuss about Section 80G of the Income Tax Act. We will cover the following topics:

What is Section 80G?

Under Section 80 G of Income Tax Act, the contributions which are made to some relief funds and charitable institutions can be claimed as a deduction. All donations, however, are not eligible for deductions under section-80G. Only donations made to prescribed funds qualify as a deduction.

Who is eligible to claim for Section-80G?

  • Any taxpayer can claim this deduction, i.e., individuals, company, firm or any other Assessee.
  • The claim of such contribution can be possible only when the payment is made via a cheque or a draft or in cash.
  • But a donation made in cash exceeding Rs. 2,000 is not eligible for claim of deduction.
  • Contributions made in kind, such as food material, clothes, medicines etc. do not qualify for deduction under section 80G.

80G exemption list

Donations Eligible for 100% Deduction without Qualifying Limit

  • National Defence Fund (NDF) set up by the Central Government
  • Prime Minister’s National Relief Fund (PMNRF)
  • 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
  • National Illness Assistance Fund
  • Fund set up by a State Government for the medical relief to the poor
  • National Blood Transfusion Council or to any State Blood Transfusion Council
  • The 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 1st, 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 26th, 2001, and September 30th, 2001) or
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions – India) Fund
  • Swachh Bharat Kosh (applicable from Financial Year 2014-15)
  • Clean Ganga Fund (applicable from Financial Year 2014-15)
  • National Fund for Control of Drug Abuse (applicable from Financial Year 2015-16)

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 Subject to 10% of Adjusted Gross Total Income

  • Donations to the government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning
  • Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India, or the sponsorship of sports and games in India.

Donations Eligible for 50% Deduction Subject to 10% of Adjusted Gross Total Income

  •  Any other fund or any institution which satisfies the conditions mentioned in Section 80G(5)
  • Government or any local authority, to be utilized for any charitable purpose other than the purpose of promoting family planning
  • Any authority constituted in India 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, villages or both
  • Any corporation referred to in Section 10(26BB) for promoting the interest of the minority community
  •  For repairs or renovation of any notified temple, mosque, gurudwara, church or other places.

Proof of Payment

An Assessee who claims the deduction under Section 80G has to present proof of payment. The receipt issued by the Donee Institute to get the benefit of deduction should be submitted by the assessee.

The receipt should have the Name, Address, PAN and the registration number of Donee under Section 80G of Income Tax Act along with the validity of the registration and amount donated by the donor.

Documents Required to claim Deduction under Section-80G

Stamped receipt:

  • You must get a stamped receipt from the trust / institution where you make a donation.
  • It acts as a valid proof of donation.
  • The receipt should have the Name, Address, and PAN of the trust / institution mentioned.
  • Also, it should include the name of the donor and details of the amount donated mentioned on it.
  • Registration number of the trust under section-80G and validity of registration (registration period) must be there on the receipt.

 Form 58

  • If your donation is eligible for 100% tax deduction then you also require a Form 58 from the trust / institution.
  • Details like the cost of the project, the amount authorized for the project & actual amount collected by the institute is mentioned in Form 58.
  • Without Form 58, your claim for 100% tax deduction can be rejected even if you have a stamped receipt.

Photocopy of the 80G certificate

  • This document is not mandatory to claim the tax deduction.
  • However, you can ask for a photocopy of this certificate to ensure that it is still valid.