Giving is not just about making a Donation. It is about making a Difference.

Swipe Right to know how you can save up on your taxes by making a donation.

Section 80G of the Income Tax Act, provides for Deduction in respect of donations to certain funds, charitable institutions, etc.

  • All assesses are eligible to avail deduction under this section i..e you can avail tax benefit of any donation made as an individual , partnership firm, LLP or any donation made by your Company. Even NRI’s can claim deduction under this section.
  • Donation made in monetary terms is only eligible for deduction under this section. Donation made in kind is not eligible for deduction under this section.
  • Any donation above Rs.2000/- shall be eligible for deduction only if the same is made in any mode other than cash.
  • Deduction is available only in respect to certain specified funds , religious institutions and other charitable trusts registered under section 80G .

Quantum of Deduction

100%/50% of the amount without any limit.

 

100%/50% of the amount Subject to 10% of Adjusted Gross Total Income*.

*Where Adjusted Total Income is your Gross Total Income excluding Long Term Capital Gains, Short Term Capital Gains on sale of shares, any exempt income and after Chapter VIA deductions other than 80G.

Eg of Donations eligible for 100% deduction

Without qualifying limit:

ü PM Cares Fund

ü Clean Ganga Fund

ü Swacch Bharat Kosh

ü PM Nation Relief Fund.

Eg of Donations eligible for 50% deduction

Without qualifying limit:

ü Jawaharlal Nehru Memorial Fund

ü Prime Ministers Drought Relief Fund

ü Rajiv Gandhi Foundation

 

 

 

Eg of Donations eligible for 100% deduction

With qualifying limit:

ü Institutions approved by CG for promotion of family planning

Eg of Donations eligible for 50% deduction With qualifying limit:

ü Shree Ram Janambhoomi Sewa Teertha trusts, Vaishno Devi Shrine etc . Any fund for renovation or repair of any temple, church, mosque, gurudwara .

ü Donations to any registered fund under this section – Hemkunt Foundation, CRY etc.

SOME IMPORTANT POINTS TO KEEP IN MIND:

> Make sure you hold a valid receipt substantiating that you have made a donation (Vide amendment made through FA 2020 w.e.f 01.04.2021 the funds shall be required to report the donations received PAN wise and accordingly the same shall reflect in your 26AS .

> Provide your correct PAN while making donation

> Check for the registration of fund under Sec 80G

> To avail benefit make sure donation is made in monetary terms only (any donation of masks, oxygen concentrators will not be eligible for deduction under this section however you can claim the same as CSR of your company)

> Avoid cash payments for donations (only upto 2000/- cash donations are eligible for benefit under this section)

> And last but not least do not forget to take benefit of same in your ITR . This deduction is other than 80C, so accordingly 1.5 lacs limit is not applicable on the same.

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Author Bio

Qualification: CA in Practice
Company: DISHA SEHGAL & ASSOCIATES
Location: PARWANOO, Himachal Pradesh, IN
Member Since: 24 Apr 2020 | Total Posts: 3
I am a qualified Chartered Accountant and currently doing my own Practice. I have an unexplainable love for Direct TAX and each case law excites me to know how a word/ line written in law can be interpreted in many different ways. View Full Profile

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