What is Section 80G?
80G is section of Income Tax Act in which individual can claim donated amount towards charity, social or philanthropic purpose. This section will encourage individuals for charitable deeds towards poor and needy people / social cause.
Donations made in cash / cheque are eligible for deduction, donations made in any other form like food, clothing, medicines are not eligible.
In order to claim deduction, it is mandatory for the donor to furnish a proof of payment towards the eligible charitable fund or institution. A stamped receipt is issued by the recipient trust in this regard, which must be attached by the assessee along with the income tax returns. The receipt must include the following details:
Donations made to any charitable trust / institution are not eligible for deduction. There are list of approved charitable institutions as below:
- Name and address of the trust
- The name of the donor
- The amount donated, mentioned in words and figures
- The registration number of the trust, as given by the income tax department under section 80G, along with its validity period.
Donations made to any charitable trust / institution are not eligible for deduction. There are list of approved charitable institutions as below:
- National Defense Fund
- National Sports Fund
- National Cultural Fund
- Zila Saksharta Samiti
- National Blood Transfusion Council
- National Children’s Fund
- Prime Minister’s Drought Relief Fund
- Prime Minister’s National Relief Fund
- Approved university / educational institution
- Medical Relief Funds of a state government
- Fund for Technology Development and Application set up by the Central Government
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
- Jawaharlal Nehru Memorial Fund
- Africa (Public Contributions-India) Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
- National Foundation for Communal Harmony
- Army Central Welfare Fund, Indian Naval Benefit Fund, Air Force Central Welfare Fund
- National Illness Assistance Fund
- Chief Minister’s or Lt. Governor’s Relief Fund (Some conditions apply)
- Any other approved fund or institution
- Donations to government / local authority for charitable purposes (excluding family planning)
- Government / local authority / institution / association towards promoting family planning
There are other charitable trusts / institutions which are not covered in this list. Individual can check with trust.
Limit of Section 80G:
Individual can take benefit of 50% or 100% of donation based on institution in which individual donated. There is one additional condition on some charitable institution - donations above 10% of Adjusted Gross Total Income (GTI) can be allowed for deduction only upto 10% of your adjusted GTI. Thus, even if individual make a donation larger than 10% of adjusted GTI, the donation eligible for deduction would be capped at 10% of adjusted GTI.
Adjusted Gross Total Income calculated as below:
| Particulars | Amount of deduction allowed (as % of the contribution) | Whether restricted to 10% of Gross Total Income (GTI) |
|---|---|---|
| National Defense Fund | 50 | No |
| National Sports Fund | 100 | No |
| National Cultural Fund | 100 | No |
| Zila Saksharta Samiti | 100 | No |
| National Blood Transfusion Council | 100 | No |
| National Children’s Fund | 100 | No |
| Prime Minister’s Drought Relief Fund | 50 | No |
| Prime Minister’s National Relief Fund | 100 | No |
| Approved university / educational institution | 100 | No |
| Medical Relief Funds of a state government | 100 | No |
| Fund for Technology Development and Application set up by the Central Government | 100 | No |
| National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities | 100 | No |
| Jawaharlal Nehru Memorial Fund | 50 | No |
| Africa (Public Contributions-India) Fund | 100 | No |
| Indira Gandhi Memorial Trust | 50 | No |
| Rajiv Gandhi Foundation | 50 | No |
| National Foundation for Communal Harmony | 100 | No |
| Army Central Welfare Fund, Indian Naval Benefit Fund, Air Force Central Welfare Fund | 100 | No |
| National Illness Assistance Fund | 100 | No |
| Chief Minister’s or Lt. Governor’s Relief Fund (Some conditions apply) | 100 | No |
| Any other approved fund or institution | 50 | Yes |
| Donations to government / local authority for charitable purposes (excluding family planning) | 50 | Yes |
| Government / local authority / institution / association towards promoting family planning | 100 | Yes |
Power to call for information Place occupied any in respect of whom exert jurisdiction any place in respect of which helps authorised for the purposes of the section by such income tax authority, who is assigned the area within about registration 80g such place is situated or who exercises jurisdiction in respect of any person occupying such place at which a business or profession is carried on, whether such place be the principal place or not of such business or profession and require any proprietor employee or any other person who incurred at that time and place be attending in an manner to helping in the carrying on of such business or profession to afford the necessary for ability to inspect.
ReplyDeleteSuch books of acorn other document as he may require and which income exemption under section 80g may be available a such place to afford him the necessary fidelity to check or verify the cash store or other valuable article or thing which may be found their and to furnish such information as he may require as to any matter which may be usful for relevant to any proceeding under the act explanation for the purposes of this sub-section 80g.
A place where a business or profession is carried on shall also include any other place the any business profes or any part of his cash or stock or other valuable article or thing relating to the business or profession are or is kept an income-tax authority may enter any place of business or proles definition to in sub-section only during the hours, at which such place is opec for the conduct of business or profession and in the tax exemption under 80g case of any other place on after sunrise and before sunset an income-tax authority acting under this section. may, if deems necessary place marks of identification on the book of account or other documents inspected by him and make or to made extracts or copies there from impound and retain in this custody.
http://www.80g.co.in/power-call-information
https://www.youtube.com/watch?v=Z2aDGlzgMyY