Section 80G of Income tax was introduced in taxation system so that the entities and individuals who have contributed to some relief fund or charitable organisation can claim deduction while filing the tax. Although all kind of donations are not eligible for deduction under section 80G of income tax act.
Deduction Under Section 80G of Income Tax Act
If an entity wants to claim deduction under section 80G of IT act; they are required to follow below listed terms and conditions while making donation to a charitable organisation to make the donation eligible for deduction.
- The deduction can only be claimed by taxpayers.
- Donation can be made in any form like cash, cheque or demand draft but all donations exceeding 2000 INR must not be carried out in cash.
- These donations are eligible for deduction of 100%, 50% with and without restrictions under 80G of IT act.
- The taxpayer is required to file ITR along with the details like name, PAN, address of Donor and amount of contribution/ donation to be claimed for deduction under Section 80G of Income tax Act.
Donation Under Section 80G of Income Tax Act
Various kind of donations and charity contributions are eligible for 100%, 50% deduction in Income Tax return ITR filing. Below is the complete list of donations under section 80G which are eligible for deduction.
Donations eligible for 100% Deduction
- 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 the medical relief to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or to 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 earthquake in Gujarat
- Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
- 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)
Donations Eligible for 50% Deduction
- Jawaharlal Nehru Memorial Fund
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
If your contribution to charitable organisation come under the list of eligible donations under section 80G of income tax act; you must file an income tax return to claim deduction under section 80G of IT act.