About Section 80G
- One of the best ways to save money on tax while also doing your bit to contribute to the world is by making donations towards charities that will then give you deductions under Section 80G.
- These have to be trusts or institutions that are eligible
- All taxpayers (individuals/companies/Hindu Undivided Families) are eligible to make donations to charity under Section 80G and claim a deduction, subject to limits set down by the government.
- NRIs are also entitled to the benefits under Section 80G, provided their donations are to eligible trusts or institutions.
- Trusts and charities need to be registered under Section 12A post which they qualify for the 80G certificate.
Documents Required to Claim Deduction under Section 80G
1. Duly Stamped Receipt: It is mandatory to have a receipt issued by the trust/charity which receives a donation. This receipt should include details like the name, address and PAN number of the trust, amount donated and the name of donor.
2. Form 58: Form 58 is essential if a donor intends to claim 100% deduction on a donation, without which their donation will not be eligible for 100% deduction.
3. Registration Number of Trust: Each eligible trust is provided with a registration number by the Income Tax Department and donors should ensure their receipt contains this number. This registration number needs to be valid on the date of a particular donation, failing which a donation might be in eligible for deductions.
Donations which are eligible for 100% Deduction without any qualifying limit
- Prime Minister’s National Relief Fund
- National Sports Fund
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory.
- An approved university/educational institution of National eminence
- National Foundation for Communal Harmony
- National Illness Assistance Fund
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
- 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
- Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made during January 26, 2001, and September 30, 2001) or
- Africa (Public Contributions – India) Fund
- Swachh Bharat Kosh (applicable from FY 2014-15)
- The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6, 1993
- Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
- Fund for Technology Development and Application
- National Children’s Fund
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- National Fund for Control of Drug Abuse (applicable from FY 2015-16)
- Fund set up by a State Government for the medical relief to the poor
- National Blood Transfusion Council or to any State Blood Transfusion Council
- Clean Ganga Fund (applicable from FY 2014-15)
- National Cultural Fund
- National Defense Fund set up by the Central Government
- Prime Minister’s Armenia Earthquake Relief Fund
- Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
Donations which are eligible for 50% Deduction without any qualifying limit
- Jawaharlal Nehru Memorial Fund
- Rajiv Gandhi Foundation
- Indira Gandhi Memorial Trust
- Prime Minister’s Drought Relief Fund
Mode of Payment for Donations under Section 80G
An individual can claim deductions against donations made under Section 80G. The payment for the donations can be made in cash or through cheque and drafts. However, one needs to keep a few things in mind in this regard:
1. From FY 2017-18, cash donations exceeding the mark of Rs.2,000 will not qualify for the deduction.
2. Donations made in kind (food, medicines, clothes, etc.) will not qualify for the deduction.
3. To be able to claim deductions under Section 80G, donations of more than Rs.2,000 have to made to be made in any mode other than cash.
4. The donations will either be eligible for a deduction of 50% or 100% (with or without restriction), as per the rules prescribed under Section 80G.
