Eligibility For Donation Under Section 80G of Income Tax Act

Categories of Donations Under Section 80G

Donations which are made to eligible trusts or organizations can get tax benefits, but certain conditions apply. Donations under Section 80G are divided into four main categories:

1. 100% Deduction (No Limit): Some donations qualify for a full 100% tax deduction without any limit. This includes donations to funds like the National Defense Fund, Prime Minister’s National Relief Fund, The National Foundation for Communal Harmony, and the National/State Blood Transfusion Council.
2. 50% Deduction (No Limit): Donations to specific trusts, such as the Prime Minister’s Drought Relief Fund, National Children’s Fund, and Indira Gandhi Memorial Fund, qualify for a 50% tax deduction with no upper limit.
3. 100% Deduction (Limited to 10% of Income): Donations made to local authorities or the government for family planning, as well as donations to the Indian Olympic Association, qualify for a 100% deduction. However, this is limited to 10% of the donor’s Adjusted Gross Total Income. Any donation amount beyond this limit does not qualify for deductions.
4. 50% Deduction (Limited to 10% of Income): Local authorities or the government qualify donations made for general charitable purposes for a 50% tax deduction. However, donors can only claim deductions on up to 10% of their Adjusted Gross Total Income; any amount beyond this limit does not qualify.

Eligibility to claim deduction under 80G

Both an individual and a company can claim a deduction under Section 80G for donations made to charitable organizations. Following persons are eligible to claim deduction under section 80G;

• Individuals
• Hindu Undivided Family
• Non-Resident Indian
• Firms
• Companies

Required documents to claim deduction Under section 80G

• Duly stamped receipt
• Form 10BE
• Photocopy of 80G certificate
• 80G registration number of trust on receipt

How to claim deduction under section 80G?

To claim tax deductions on donations under Section 80G while filing an Income Tax Return (ITR), an individual needs to provide the following details:

• Name of the organization (Donee)
• PAN of the organization
• Address of the organization
• Total amount donated
• Amount eligible for deduction

Where to Enter the Donation Details in ITR?

While filing an ITR, an individual must enter the donation details in one of the following tables based on the type of deduction:

• For donations that qualify for a 100% deduction with no limit – Table A
• For donations that qualify for a 50% deduction with no limit – Table B
• For donations that qualify for a 100% deduction but are subject to a limit – Table C
• For donations that qualify for a 50% deduction but are subject to a limit – Table D
• By ensuring you provide the correct details in the right table, you can easily claim tax benefits on your donations.

Conclusion

Donations under Section 80G not only help in supporting social causes but also provide tax benefits to donors. it is important to verify the registration status of the organization and keep the required documents to claim deductions successfully. Making informed donations ensures that your contributions reach the right hands and offer financial benefits in return.

Suggested Read :

Section 80G of Income Tax Act

Difference between 12A and 80G

How to Download 12A and 80G Certificate?

NGO Donation Tax Exemption under Section 80G

Deduction Limit For Individual Under Section 80G

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