Deductions for Donations

Deductions for Donations u/s 80G

Donations of money to certain funds, charitable institutions, etc., are eligible for deduction from Income under Section 80G.

For the purpose of claiming deduction, the assets are classified into four categories: -

Category A

Donations that qualify for 100% deduction.

Category B

Donations that qualify for 50% deduction.

Category C

Donations (to be restricted to 10% of Total Income) that qualify for 100% deduction.

Category D

Donations (to be restricted to 10% of Total Income) that qualify for 50% deduction.

Note: -

Total Income = Gross Total Income - Chapter VI-A Deductions (except 80G)

Category C & Category D donations cannot cumulatively exceed 10% of the Total Income.

Deductions for Donation u/s 80GGA

Donation for Research and Rural Development

Sum paid is deductible .

Deduction for Donation u/s 80GGB & 80GGC

Contribution to political party

Sum paid is deductible.

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Deductions for Donations - Category A

The following list of Items qualify for deductions to the extent of 100% of Total Income.

1. Technology: -

Fund for Technology Department and Application set up by the Central Government of India.

2. Security: -

Fund donated for any of the following funds established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants is eligible for deduction u/s 80G.

• The Army Central Welfare Fund, or

• The Indian Naval Benevolent Fund, or

• The Air Force Central Welfare Fund

• National Defence Fund.

3. Education: -

Donations for any of the following Education funds is eligible for deduction u/s 80G.

• A university or any educational institution of national eminence.

• Any Zila Saksharta Samiti constituted in any district for the purposes of improvement of primary education in villages and towns in such district and for literacy and post-literacy activities.

4. Medical: -

Donations for any of the following Medical funds is eligible for deduction u/s 80G.

• The National Illness Assistance Fund

• The National Blood Transfusion Council or to any State Blood Transfusion Council

• Any fund set up by a State Government to provide medical relief to the poor

• The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.

5. Relief: -

Fund donated for any of the following Relief funds is eligible for deduction u/s 80G.

• The Prime Minister's National Relief Fund.

• The Prime Minister's Armenia Earthquake Relief Fund.

• The Africa (Public Contributions India) Fund.

• The Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or the Union Territory.

6. Others Donations: -

Fund donated for any of the following funds is eligible for deduction u/s 80G.

• The National Sports Fund.

• The National Cultural Fund.

• The National Foundation for Communal Harmony.

Quantum of Deductions for category A:

100% of donations.

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Deductions for Donations - Category B

Any donations made for the following funds are eligible for deductions under 80G.

• The Prime Minister's Drought Relief Fund.

• The National Children's Fund.

• The Jawaharlal Memorial Fund.

• The Indira Gandhi Memorial Trust.

• The Rajiv Gandhi Foundation.

Quantum of Deductions for category B:

50% of donations.

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Deductions for Donations - Category C

Any donations made for the following purpose are eligible for deductions under 80G.

Family Planning: -

• Donations made to the Government or to any such local authority, institution or association approved by the Central Government of India, for the purpose of promoting family planning.

Sports Development: -

• Any sum paid by a company to the Indian Olympic Association or to any other association or institution established in India notified by the Central Government for

  1. The development of infrastructure for sports and games; or
  2. The sponsorship of sports and games; in India

Quantum of Deductions for category C:

100% of donations. But the Donations should be restricted to 10% of Total Income.

Note: -

Total Income = Gross Total Income - Chapter VI-A Deductions (except 80G)

Category C & Category D donations cannot cumulatively exceed 10% of the Total Income.

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Deductions for Donations - Category D

Any donations made for the following purpose are eligible for deductions under 80G.

Renovation of any Places of Public Worship: -

• Donations for the renovation or repair of any temple, mosque, gurdwara, church or other place notified by Central Government to be of historic, archaeological or artistic importance or to be a place of public worship or renown throughout any State(s).

Government Charity: -

• Donations to the Government or Local Authority, to be utilised for charitable purpose.(Other than family planning)

General Charity: -

• Donations to any other funds or any Institutions approved under Section 80G.

For promoting Housing accommodation: -

• Donations to any authority constituted in India by or under any law for the purpose of dealing with and satisfying the need for housing accommodation for the purpose of planning, development or improvement of cities, towns and villages, or for both.

Minority community: -

• Donations to any Corporation established by the Central Government or any State Government for promoting the interests of the members of the minority community.

Quantum of Deductions for category D:

50% of donations. But the Donations should be restricted to 10% of Total Income.

Note: -

Total Income = Gross Total Income - Chapter VI-A Deductions (except 80G)

Category C & Category D donations cannot cumulatively exceed 10% of the Total Income.

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Deductions for Donations
Research and Rural area Development u/s 80GGA

Any assessee not having "Profit and Gains of Business or Profession" is eligible for deductions for donations made under 80GGA.

The whole amount contributed to any of the following Payee are eligible for deduction.

Scientific Research: -

• Scientific Research Association

• University

• Colleges

• Any other institution approved u/s 35(1)(ii)

Research in Social Science or Statistical Research: -

• University

• Colleges

• Any other institution approved u/s 35(1)(ii)

Rural Area Development Programme: -

• Association or Institution, approved under section 35CCA(2) or 35CCA(2A)

Training of persons for Rural Area Development Programme: -

• Association or Institution, approved under section 35CCA(2) or 35CCA(2A)

Carrying out Eligible Project or Scheme [notified u/s 35AC]: -

• Public Sector Company

• Local Authority

• Association or Institution

Fund for Rural Area Development Programme: -

• Rural Development Fund notified by Central Government of India under section 35CCA(1)(c)

Urban Poverty Eradication Fund: -

• National Urban Poverty Eradication Fund notified by Central Government of India under section 35CCA(1)(c)

Quantum of Deductions:

Whole Amount contributed is deductible.

Note: -

Where deduction is claimed under this section, no deduction can be claimed under any other section.

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Deductions for Donations
For Political Parties u/s 80GGB & 80GGC

Contribution by an Indian Company: -

Any contribution made by an Indian Company to any political party is deductible u/s 80GGB.

Contribution by any other Person: -

Any contribution made by any other person Except

• Local Authority

• Artificial Juridical Person, wholly or partly funded by Govt.

is deductible u/s 80GGC.

Quantum of Deductions:

Whole Amount contributed is deductible.

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