Deduction in respect of donations to certain funds, charitable institutions etc. [Section 80G] :
(i) Where an assessee pays any sum as donation to eligible funds or institutions, he is entitled to a deduction, subject to certain limitations, from the gross total income.
(ii) The following table gives the details of the institutions and funds to which donations can be made for the purpose of claiming deduction under section 80G, the qualifying amount and the deductions allowable –
| Eligible institutions / funds | Permissible deduction |
| 1 | 2 |
| 1. The National Defence Fund set up by the Central Government | 100% |
| 2. The Jawaharlal Nehru Memorial Fund. | 50% |
| 3. Prime Minister‘s Drought Relief Fund. | 50% |
| 4. Prime Minister‘s National Relief Fund. | 100% |
| 5. Prime Minister‘s Armenia Earthquake Relief Fund. | 100% |
| 6. The Africa (Public Contributions-India) Fund. | 100% |
| 7. The National Children‘s Fund. | 100% |
| 8. Indira Gandhi Memorial Trust. | 50% |
| 9. Rajiv Gandhi Foundation. | 50% |
| 10. The National Foundation for Communal Harmony. | 100% |
| 11. Approved University or educational institution of national eminence. | 100% |
| 12. Maharashtra Chief Minister‘s Earthquake Relief Fund | 100% |
| 13. Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the Gujarat earthquake. | 100% |
| 14. Any Zila Saksharta Samiti for primary education in villages and towns and for literacy and post-literacy activities | 100% |
| 15. National Blood Transfusion Council or any State Blood Transfusion Council whose sole objective is the control, supervision, regulation or encouragement of operation and requirements of blood banks. | 100% |
| 16. Any State Government Fund set up to provide medical relief to the poor. | 100% |
| 17. The Army Central Welfare Fund or Indian Naval Benevolent Fund or Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of past and present members of such forces or their dependents. | 100% |
| 18. The National Illness Assistance Fund. | 100% |
| 19. The Chief Minister‘s Relief Fund or Lieutenant Governor‘s Relief Fund. | 100% |
| 20. The National Sports Fund set up by the Central Government. | 100% |
| 21. The National Cultural Fund set up by the Central Government. | 100% |
| 22. The Fund for Technology Development and Application set up by the Central Government. | 100% |
| 23. National Trust for welfare of persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities. | 100% |
| 24. The Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by the assessee in pursuance of CSR u/s 135(5) of the Companies Act, 2013. | 100% |
| 25. The Clean Ganga Fund, set up by the Central Government, where such assessee is a resident, other than the sum spent in pursuance of CSR u/s 135(5) of the Companies Act, 2013. | 100% |
| 26. The National Fund for Control of Drug Abuse constituted under section 7A of the Narcotic Drugs and Psychotroic Substances Act, 1985 | 100% |
| Eligible institutions / funds | % of donation subject to qualifying limit [see para (iii) below] |
| 1 | 2 |
| 27. Any Institution or Fund established in India for charitable purposes fulfilling certain prescribed conditions under section 80G(5) | 50% |
| 28. The Government or any local authority for utilisation for any charitable purpose other than the purpose of promoting family planning. | 50% |
| 29. An authority constituted in India or under any other law enacted either for dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or both. | 50% |
| 30. Any Corporation established by the Central Government or any State Government for promoting the interests of the members of a minority community | 50% |
| 31. The Government or to any approved local authority, institution or association for promotion of family planning. | 100% |
| 32. Notified temple, mosque, gurdwara, church or other place of historic, archaeological or artistic importance or which is a place of public worship of renown throughout any State or States | 50% |
| 33. Sum paid by a company as donation to the Indian Olympic Association or any other association/institution established in India, as may be notified by the Government for the development of infrastructure for sports or games, or the sponsorship of sports and games in India. | 100% |
(iii) All the eligible donations Sl.No. 27 to 33 should be aggregated and the sum total should be limited to 10% of the adjusted gross total income. This would be the maximum permissible deduction. The donations qualifying for 100% deduction would be first adjusted from the maximum permissible deduction and thereafter 50% deduction of the balance would be allowed.
| Adjusted gross total income means the gross total income as reduced by the following:
(1) amount of deductions under sections 80C to 80U (but not including section 80G), (2) Any income on which income-tax is not payable, (3) Long term capital gains taxable under section 112 and short term capital gains taxable under section 111A. |
(iv) The conditions mentioned in item No. 24 above are as follows:
(1) The institution or fund is:
(a) constituted as a public charitable trust, or
(b) registered under the Societies Registration Act, 1960 or under any corresponding law or under section 25 of the Companies Act, 1956, or
(c) a University established by law or
(d) any other educational institution recognized by the Government or
(e) an institution financed wholly or in part by the Government or a local authority.
(2) Where such Institution or Fund derives any income, such income should not be liable to inclusion in its total income under the provisions of section 10(23AA), 10(23C) or 11 or 12.
The Institution, referred to in the above clauses of section 10 are as follows:
(i) Regimental fund or Non-public Fund established by the armed forces of the Union for the welfare of its members and their dependants [Section 10(23AA)]
(ii) The Prime Minister Fund (Promotion of Folk Art) [Section 10(23C)]
(iii) The Prime Minister Aid to Students Fund [Section 10(23C)]
(iv) National Foundation for communal harmony [Section 10(23C)]
(v) Charitable Trusts and Institutions [Sections 11 and 12].
However, it may be noted that the assessee will not lose the benefit of deduction if:
(a) subsequent to the donation, any part of the income of the Institution has become chargeable to tax due to non-compliance with any of the provisions of section 11 or section 12 or section 12A.
(b) as a result of the operation of section 11(1)(c), exemption under section 11 or section 12 is denied to the institution.
(3) No part of the income or assets of the Institution or Fund is transferable or applicable at any time for any purposes other than charitable purpose. Such charitable purpose however does not include any purpose the whole or substantially the whole of which is of a religious nature.
For the purposes of this section, an association or institution having as its object the control, supervision, regulation or encouragement in India of such games or sports as the Central Government may, by notification in the Official Gazette, specify in this behalf, shall be deemed to be an institution established in India for a charitable purpose.
(4) The Institution or Fund is not expressed to be for the benefit of any particular religious community or caste. An institution or fund established for the benefit of women and children or of Scheduled Castes, Backward classes or Scheduled Tribes is not however to be treated as an institution or fund for the benefit of a religious community or caste.
(5) The Institution or Fund maintains regular accounts of its receipt and expenditure.
(v) Where an assessee has claimed and has been allowed any deduction under this section in respect of any amount of donation, the same amount will not qualify for deduction under any other provision of the Act for the same or any other assessment year [Sub-section (5A)].
(vi) Where an institution or fund incurs expenditure of a religious nature for an amount not exceeding 5% of its total income in that previous year, such institution or fund shall be deemed to be a fund or institution to which the provisions of this section apply.
(vii) Donations in kind shall not qualify for deduction.
(viii) No deduction shall be allowed in respect of donation of any sum exceeding Rs 10,000 unless such sum is paid by any mode other than cash.
(ix) The deduction under section 80G can be claimed whether it has any nexus with the business of the assessee or not.
(x) In respect of donations made after 31.3.1992 to any institution or fund, such institution or fund must be approved by the Commissioner in accordance with the rules made in this behalf.
(xi) As per Circular No.2/2005 dated 12.1.2005, in cases where employees make donations to the Prime Minister‘s National Relief Fund, the Chief Minister‘s Relief Fund or the Lieutenant Governor‘s Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G of the Income-tax Act, 1961 on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf.