Income Tax Deduction U/S 80G to funds other than Category D shall be allowed based on claim made in Income Tax Return of assessee says Department by publishing on its official portal on Aug 12th , 2022.
Department also mentioned that only Category D – Donation entitled for 50% deduction without qualifying limit funds are mandatorily required to file statement of donation in Form 10BD and to provide certificate of donation in Form 10BE. The deduction under Section 80G of the Act shall be allowed to an assessee based on the claim made by him in his return of income E.g. Donations made to PMNRF and PM CARES Fund etc.
What is Deduction U/S 80G?
Assessee can claim deduction U/S 80G for donations made to charitable or religious funds who have obtained 80G and 12A certificate from Income Tax Department. All the funds does no qualify for 100% deduction on donation. The donation deduction is based on the type of fund to which such donation was made, which will be elaborately discussed in the below article.
Eligible Person to claim deduction U/S 80G are Individual, HUF, Firm, LLP and Company.
However, if individual has opted for tax payment as per new tax regime, the deduction of donation made will not be allowed. Refer article for guide on new tax regime https://www.taxledgeradvisor.com/itr-1/#Revised_Optional_Slab_Rates_under_Section_115BAC_for_FY_2021-22_AY_2022-23_are
Mode of Payment for obtaining deduction U/S 80G?
Mode of payment to claimed benefit of deduction for donation made U/S 80G should via cheque or draft or bank but should not be in cash exceeding Rs 2000.
Monetary donation are only eligible for obtaining deduction U/S 80G i.e. donations made in-kind such as clothes, food, medicines etc. do not qualify for 80G deduction
The Amount eligible for deduction will depend on the category of fund to which donations are made. 4 Categories have been defined in law which are:
- Donation entitled for 100% deduction without qualifying limit
- Donation entitled for 50% deduction without qualifying limit
- Donation entitled for 100% deduction with qualifying limit
- Donation entitled for 50% deduction with qualifying limit
Process to claim Deduction U/S 80G
Assessee while filing Income Tax Return has to submit the following details :
- Name of the donee
- PAN of the donee
- Address of the donee
- Amount of contribution – the breakup of contribution in cash and another mode
- The amount eligible for deduction
The above details needs to be mentioned in the respective Tables given in the ITR.
- Table A pertains to donations entitled for 100% deduction without qualifying limit
- Table B pertains to donations entitled for 50% deduction without qualifying limit
- Table C pertains to donations entitled for 100% deduction with qualifying limit
- Table D pertains to donations entitled for 50% deduction with qualifying limit
List of Funds to which donations are eligible for 100% deduction without qualifying limit
- National Defense 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 constituted in any district under the chairmanship of the Collector of that district
- Fund set up by a state government for the medical relief to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or to 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
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Prime Minister’s Armenia Earthquake Relief Fund
- Africa (Public Contributions – India) Fund
- Swachh Bharat Kosh
- Clean Ganga Fund
- National Fund for Control of Drug Abuse
List of funds to which donations are eligible for 50% deduction without qualifying limit
- Jawaharlal Nehru Memorial Fund
- Prime Minister’s Drought Relief Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
List of funds to which donations are eligible for 100% deduction subject to 10% of adjusted gross total income
- Donations either to government or any other approved local authority, institution or association to be utilized to promote family planning.
List of funds to which donations are eligible for 50% deduction subject to 10% of adjusted gross total income
- Any fund or any institution established for charitable purposes and approved by the Commissioner of Income-Tax, which is constituted as a
- Public charitable trust; or
- Registered under the Societies Registration Act, 1860; or
- Registered under section 8 of the Companies Act, 2013; or
- University established by law, or is any other educational institution recognized by the Government or by a University established by law, or affiliated to any University established by law; or
- An institution financed wholly or in part by the Government or a local authority.
- Government or any local authority, to be utilized for any charitable purpose other than the purpose of promoting family planning.
- An authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both.
- Any corporation for promoting interest of minority community.
- Donations for the renovation or repair of any such temple, mosque, gurdwara, church or other place as is notified by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States.
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