1.

Section 80G
Contributions made to certain relief funds and charitable institutions can be claimed as a
deduction under Section 80G of the Income Tax Act. All donations, however, are not
eligible for deductions under section 80G. Only donations made to prescribed funds
qualify as a deduction. This deduction can be claimed by any taxpayer – individuals,
company, firm or any other person.

2. What is the mode of payment

This deduction can only be claimed when the contribution has been made via a cheque
or a draft or in cash. But the deduction is not allowed for donations made in cash
exceeding Rs 10,000. In-kind contributions such as food, material, clothes, medicines
etc. do not qualify for deduction under section 80G. From Financial Year 2017-18
onwards: Any donations made in cash exceeding Rs 2,000 will not be allowed as
deduction. The donations above Rs 2,000 should be made in any mode other than cash
to qualify as a deduction under section 80G. Amount of Donation: The various
donations specified in section 80G are eligible for a deduction of up to either 100% or
50% with or without restriction, as provided in section 80G.

3. How to claim the deduction

To be able to claim this deduction the following details have to be submitted in
your Income Tax Return
 Name of the Donee
 PAN of the Donee

 Address of the Donee

 Amount of Contribution

4. Donations Eligible for 100% Deduction

Without Qualifying 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 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
 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 during January 26,
2001, and September 30, 2001) or
 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)

5. Donations Eligible for 50% Deduction

Without Qualifying Limit
 Jawaharlal Nehru Memorial Fund
  Prime Minister’s Drought Relief Fund
 Indira Gandhi Memorial Trust
 Rajiv Gandhi Foundation

Frequently Asked Questions

 I made donations to a trust of Rs.5000 in cash and the donations to trust are
qualified for a deduction under section 80G. Can I claim deduction when at the
time of filing a return?

No, in case of 80G donations made in cash in excess of Rs.2000 wont qualify for
deduction, so you cannot claim a deduction for the same.

 Can a partnership firm claim deduction under section 80G ?

Yes, individuals, firm, company or any other person can claim deduction under
section 80G.

 I am non resident and made donations to Prime Minister’s Relief fund, can I claim
deduction under section 80G?

Yes, the benefit of claiming deduction under section 80G is allowed to both
resident and non residents.

What points should I keep in mind for claiming deduction?

Following points must be borne in mind:

i) A stamped receipt is a must:

– For claiming deduction under Section 80G, a receipt issued by the recipient trust is a
must. The receipt must contain the name and address of the Trust, the name of the
donor, the amount donated (please ensure that the amount written in words and figures
tally).
– The most important requirement is the Registration number issued by the Income Tax
Department under Section 80G. This number must be printed on the receipt.
The donor must ensure that the registration is valid on the date on which the donation is
given. However With Effect from 1st October 2009 it is not required for a trust to apply
for renewal of 80G certificate, if the same is valid on 01.10.2009 or valid upto a date
thereafter unless department specifically ask Trust to apply for renewal.  So Old 80G
certificate will remain valid if the same is valid on 01.10.2009.
So, please check the validity period of the 80G certificate. Always insist on a photocopy
of the 80G certificate in addition to the receipt.
ii) Only donations in cash/cheque are eligible for the tax
deduction:
Donations in kind do not entitle for any tax benefits. For example, during natural
disasters such as floods, earthquake, many organisations start campaigs for collecting
clothes, blankets, food etc. Such donations will not fetch you any tax benefits.  No
deduction under this section is allowable in case of amount of donation if
exceeds Rs 2,000/- unless the amount is paid by any mode other than cash.