80G

Section 80G deduction of the Income Tax Act is allowed for amount paid by the taxpayer as donation to any fund or institution or charitable Trust. All donations are not treated equally under Income Tax Act. Donations to certain funds and institutions qualify for 100% or 50% deduction without any qualifying limit. On the other hand, certain donations qualify for 100% or 50% deduction, subject to qualifying limit.

The following taxpayer can claim a deduction under this section: 

• Individuals 
• Companies 
• Firms 
• Hindu Undivided Firm (HUF)
• Non-Resident Indian (NRI)
• Any other person

However, all donations are not eligible for deductions under Section 80G. Only donations made to prescribed funds qualify as a deduction. 

Note: This deduction is not available if you are opt for the new tax regime. 

Section 80G deductions can be claimed by taxpayers when they make donations through the following modes:

• Cheque 
• Demand draft 
• Cash (for donations below Rs 2,000)

Note: In-kind contributions such as food, material, clothes, medicines etc., and donations of above Rs 2,000 in case they do 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.

The various donations specified in Section 80G are eligible for a deduction of up to 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 – the breakup of contribution in cash and another mode
• The amount eligible for deduction

The above details need to be mentioned in the respective tables given in the ITR.

• Table A: For donations entitled to 100% deduction without qualifying limit
• Table B: For donations entitled to 50% deduction without qualifying limit
• Table C: For donations entitled to 100% deduction subject to qualifying limit
• Table D: For donations entitled to a 50% deduction subject to the qualifying limit

• 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 medical relief to the poor
• National Illness Assistance Fund
• National Blood Transfusion Council or 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 between January 26, 2001, and September 30, 2001)
• 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)

• Prime Minister’s Drought Relief Fund
• Jawaharlal Nehru Memorial Fund
• Indira Gandhi Memorial Trust
• Rajiv Gandhi Foundation

Note: Donations to the last three funds will not be eligible for deduction from FY 2023-24 onwards.

• Donations to the government or any approved local authority, institution or association to be utilised to promote family planning
• Donation by a company to the Indian Olympic Association or any other notified association or institution established in India to develop infrastructure for sports and games in India or sponsor sports and games in India.

The tax benefit will depend on the tax rate applicable to the taxpayer. 

For example, Mr S is an individual and M/s. P Pvt. Ltd., a company, gives Rs 1,60,000 to an NGO. The total income for the AY 2020-21 of both Mr S and M/s. P Pvt. Ltd. is Rs 7,00,000. The tax benefit would be as shown in the table:

• Any other fund or institution satisfies the conditions mentioned in Section 80G(5).
• Government or any local authority, to be utilised for any charitable purpose other than promoting family planning.
• Any authority constituted in India to deal with and satisfy the need for housing accommodation or 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.

Taxpayers who want to claim tax deduction under Section 80G must have the following documents to support their claim:

• Duly stamped receipt: Obtaining a receipt issued by the charity/trust to which you donate the amount is mandatory. The receipt should include details such as your name, address, amount donated,  PAN number of the trust, etc.
• Form 58: Form 58 is required when a donor intends to claim a 100% deduction.
• Registration number of trust: All eligible trusts under this section are provided with a registration number by the Income Tax Department. Donors should ensure that the receipt contains the trust registration number.