All about the deductions under section 80G
Donating to charitable organizations, NGOs, and trusts that help the poor and needy is a noble way to contribute to society, and you can also benefit from tax deductions for such donations under Section 80G of the Income Tax Act, 1961.
-Eligible Donations: Deduction under Section 80G can be claimed for monetary donations made to specified organizations. However, donations in kind (like food, clothes, or medicine) are not eligible for deduction.
Also, donations of above Rs 2,000 in cash does not qualify for deduction under Section 80G. Donations above Rs 2,000 should be made in any mode other than cash to qualify under Section 80G.
-Required Documentations: To claim a deduction, the donor must provide proof of donation. The receipt should contain the following details-
Name of the Donor
Address of the Donor
80G Registration number of Donee Trust/Association.
10BE Certificate issued by Donee through Income tax Department
-Limitations on Donations:
1.Without Any Limit- Donations eligible for 100% or 50% deduction, with no cap on the total deduction amount.
100% Deduction: National Defence Fund, Prime Minister’s National Relief Fund/PM CARES fund, National Illness Assistance Fund, National Cultural Fund, and more
50% Deduction: Prime Minister’s Drought Relief Fund and others.
2.With Limit- Donations eligible for 100% or 50% deduction, Subject to 10% of Adjusted Gross Total Income.
100% Deduction: Donations to the government or any approved local authority, institution, or association that will be utilized specifically for promoting family planning.
50% Deductions:
Donation to any other fund or Institutions that satisfies the conditions mentioned in Section 80G(5) (i.e., registered and approved by the Income Tax Department). i.e donation to any charitable trust having the 80G registrations.
Donations for the repair or renovation of any notified temple, mosque, gurudwara, church, or other places that are of historic, archaeological, or artistic importance, as notified by the government.
Donations to government or any local authority for charitable purposes other than promoting family planning.
-Donations to any authority constituted in India that is set up to address the need for housing accommodation or for the planning, development, or improvement of cities, towns, villages, or both.
-Donations to any corporation referred to in Section 10(26BB), which is created for promoting the interests of the minority community.
–What is Qualifying limit & Adjusted Gross Total Income!!!!!
“The qualifying limits u/s 80G is 10% of the adjusted gross total income. The limit is to be applied to the adjusted gross total income. The ‘adjusted gross total income’ for this purpose is the gross total income (i.e. the subtotal of income under various heads) reduced by the following…
- Amount deductible under Sections 80CCC to 80U (but not Section 80G)
- Exempt income
- Long-term capital gains
- Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D, relating to non-residents and foreign companies.