Under this section, donations made towards charitable institutions and relief funds can be claimed as a deduction. Please note that donations made towards certain prescribed funds are only qualified for deduction under Section 80G of the Income Tax Act and donation has to be made either by cash or a cheque or a draft. If donations are made in cash exceeding Rs 2,000, then the same cannot be allowed for deduction. Deduction under this section can be claimed by any salaried individual, company, firm or any other person.
Donations made under this section qualifies for deduction either up to 100% or 50% or without restriction as per the rules of the Income Tax Act of 1961.
Donations Eligible for 100% Deduction without Qualifying Limit
- Prime Minister’s National Relief Fund
- National Illness Assistance Fund
- National Sports Fund
- Clean Ganga Fund
- National Fund for Control of Drug Abuse
- National Cultural Fund
- National Defence Fund By Central Government
- Approved Educational Institution/ University of National Eminence
- National Blood Transfusion Council
- National Children’s Fund
- Swachh Bharat Kosh
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Prime Minister’s Armenia Earthquake Relief Fund
- Army Central Welfare Fund or Indian Naval Benevolent Fund or the Air Force
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
- Fund for Technology Development and Application
- Africa (Public Contributions – India) Fund
- Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
- Donations Eligible for 50% Deduction without Qualifying Limit
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- Jawaharlal Nehru Memorial Fund
- Rajiv Gandhi Foundation
Donations Eligible for 100% Deduction Subject to 10% of Adjusted Gross Total Income
- Donation by a company towards Indian Olympic Association or any other notified institution established in India for development of infrastructure for games and sports or sponsorship of games and sports in India.
- Donation to the government or any of the approved local authority, association or institution to be utilized for the purpose of promoting family planning.
Donations Eligible for 50% Deduction subject to 10% of Adjusted Gross Total Income
- Government or any local authority, to be utilized for any charitable purpose other than the purpose of promoting family planning.
- Any other fund or an institution which satisfies the conditions as mentioned under Section 80G(5).
- Any corporation referred to in Section 10(26BB) for promoting the interest of the minority community.
- Donation made towards repair works or renovation of notified temples, gurudwaras, mosques, church or any other places.