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Deductions Under 80G

Donation is a noble task. In order to do favour for the Kind heart persons who donated for noble purpose, Income Tax department is providing Tax benefits to those persons.

Contributions made to certain relief funds and charitable institutions can be claimed as deduction from tax under section 80G of Income Tax Act. However, contributions made to all the institutions are not eligible for deduction.

Eligibility

Deduction under this section is not restricted to any specific category of persons or assesses. Any Tax payer can claim this deduction for making donation towards an approved charitable institution.

Mode of Payment Under Section 80G

  • Donations made in form of Kind are not eligible for deduction.
  • From F.Y 2017-2018 donations made in cash exceeding 2000 do not qualify for tax deduction. Therefore, in order to qualify for deduction under section 80G donations exceeding 2000/- should be made in any mode other than cash.

Documents Required to Claim Deduction:

  • You must obtain a stamped receipt from the trust where you made donation.
  • Such receipt should have name of donor, amount donated and name, address, PAN of the trust or institution.
  • If your donation is eligible for 100% deduction then you must obtain FORM 58 from the trust or institution.

Maximum Deduction Under Section 80G


Net Qualifying Amount refers to the 10% of the adjusted gross total income or the donations/ contributions made (excluding the donation/ contribution to the specified funds as mentioned in Table-1 and Table -2), whichever is less.

Calculation of Adjusted Gross Total Income


“When you donate to the for noble cause not only GOD gives blessings,

                                                                   But also, Tax Department gives Tax benefits.”