Indian income tax-Donations- Sec. 80 G

Those assessees who want to donate for charitable purpose and to save income tax also, the following details will be helpful.
Under Sec.80 G of income tax , one can avail tax benefits for donating money to certain listed funds and charitable institutions. The benefit is applicable to all assessees. We can obtain either 50% or 100% of amount donated as tax deduction based on charitable institutions.

Sec. 80 G can be divided into 4 groups and now groups details are given one by one:

  1. We can get 100% tax deductions without any qualifying limit for funds like Prime minister’s National relief fund and national defense fund.
  2. We can get 100% tax deductions with qualifying limit for donations to approved institutions engaged in promoting family planning.
  3. 50% deduction will be allowable without any qualifying limit for trusts like Indira Gandhi Memorial Trust and Jawaharlal Memorial fund etc.
  4. 50% deductions will be allowable with limit for other charitable institutions prescribed by income tax law.

But one overall/aggregate limit for donations is 10% of Gross total income.( i.e. Gross total income minus all other deductions )

Other things to note:

  1. Cash and cheque payment are allowed up to the limit levels.
  2. Donations in kind will not be eligible.
  3. Proof of payment has to be submitted to income tax for claiming this deduction. Hence the receipt should have the name and addres of the trust/charitable institution, the name of the donor, the amount donated in figures and words, the registration number of trust issued by income tax dept under sec.80G along with validity period, seal and sign of authorized person.
  4. For knowing the list of all approved charitable trusts and funds, we can see



2 thoughts on “Indian income tax-Donations- Sec. 80 G

  1. If I donate land for small school in my village what kind of exemptions and deductions will I get. I have recently thought of idea to donate my piece of land which is of no use to me and I need some assistance and guidance on how to go about it. I want to first of all ensure it is in right hands and used for right purpose and then see how i can get some benefit from it

    1. Dear sir,

      I think you better consult one chartered accountant in your area. To my knowledge, probably you have to get valuation certificate from certified valuer so that the value of donation can be ascertained. Then formalities of assingment of land in favour of donee is to be done. Then you can avail benefits.


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