Eligibility to claim the deduction
Under this rule, the following taxpayers can get a tax deduction:
Hindu Undivided Firm (HUF)
Non-Resident Indian (NRI)
Any other person
Under Section 80G, you can't get a tax deduction for every donation, though.
Only donations to certain funds can be used as a tax deduction.
But Remember that If you choose the new tax system, you can't take this advantage.
Mode of payment
Section 80G allows people to get tax deductions when they give money to charity in any of the following ways:
- Demand draft
- Cash (if the donation is less than Rs. 2000)
Remember that In-kind donations, such as food, materials, clothes, medicines, etc., and donations of more than Rs 2,000 cannot be deducted under Section 80G. Section 80G says that donations over Rs 2,000 should be made in a way other than cash.
Section 80G says that you can deduct up to 100% or 50%, with or without limits, for the different kinds of donations it lists.
How to obtain the Section 80G deduction?
To get this deduction, you must include the following information on your income tax return:
- Name of the donee
- PAN of the donee
- Address of the donee
How much contribution was given—how much was given in cash and how much was given in any other way.
The amount that can be deducted
All the above information must be filled out in the ITR forms.
Table A: Donations that qualified for a 100% tax deduction without any limits
Table B: Donations that qualify for a 50% tax deduction without a limit.
Table C: Donations that qualify for a 100% tax deduction are subject to a specific limit.
Table D: For donations that qualify for a 50% tax deduction, subject to a limit
List of donations qualified for 100% deduction without 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 is 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).
List of donations qualified for 50% deduction without limit
Prime Minister's Drought Relief Fund
Jawaharlal Nehru Memorial Fund
Indira Gandhi Memorial Trust
Rajiv Gandhi Foundation
List of donations qualified for 100% deduction subject to 10% of adjusted gross total income
Donations to the government or any approved local authority, institution, or association to be utilized 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.
List of Donations qualified for a 50% deduction subject to 10% of adjusted gross total income
Any other fund or institution satisfies the conditions mentioned in Section 80G(5).
Government or any local authority, to be utilized 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.
Calculation of 80GG
The penalty for 80GG will be the lowest of the following:
5,000 rupees per month
25% of the total income after adjustments
Actual rent - 10% of total income after being adjusted
Latest Budget Updates
Budget 2023 said that donations to the following funds wouldn't be qualified for 80G tax deductions:
National Defence Fund
Prime Minister's National Relief Fund
The National Foundation for Communal Harmony
National/State Blood Transfusion Council
Donations that are eligible for a 50% tax deduction without any limit:
Jawaharlal Nehru Memorial Fund
Rajiv Gandhi Foundation
The Prime Minister's Drought Relief Fund
Indira Gandhi Memorial Trust.