80G Deduction Limit- How to Calculate Deduction Limit For 80G of IT Act

Under Section 80G deduction is provided on the basis of certain parameters. Deduction of the amount contributed or donated from his gross total income depends on the kind of trust/organization, where the contribution is made. For the purpose of calculation of 80G deduction limit, the deduction can be classified as under:-

1. Deduction without any qualifying limit- 100%

2. Deduction without any qualifying limit- 50%

3. Deduction subject to qualifying limit- 100%

4. Deduction subject to qualifying limit- 50%

Here are the complete 80G deduction list and 80G deduction calculation

Must Read:- Section 80G of IT Act- Complete guide for how to get tax benefit under Income Tax

80G Deduction limit available for the amount contributed- without qualifying limit-100%

80G deduction list- Donee/Notified Funds80G Deduction Limit
National Defence Fund set up by the Central Government100%
Prime Minister’s National Relief Fund 100%
National Foundation for Communal Harmony 100%
An approved university/educational institution of National eminence 100%
Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district 100%
Fund set up by a State Government for the medical relief to the poor 100%
National Illness Assistance Fund 100%
National Blood Transfusion Council or to any State Blood Transfusion Council 100%
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities 100%
National Sports Fund 100%
National Cultural Fund 100%
Fund for Technology Development and Application 100%
National Children’s Fund 100%
Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory 100%
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 100%
The Maharashtra Chief Minister’s Relief Fund during October 1, 1993, and October 6, 1993 100%
Chief Minister’s Earthquake Relief Fund, Maharashtra 100%
Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat 100%
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 100%
Prime Minister’s Armenia Earthquake Relief Fund 100%
Africa (Public Contributions – India) Fund 100%
Swachh Bharat Kosh (applicable from FY 2014-15) 100%
Clean Ganga Fund (applicable from FY 2014-15) 100%
National Fund for Control of Drug Abuse (applicable from FY 2015-16) 100%

80G Deduction limit available for the amount contributed- without qualifying limit-50%

80G deduction list- Donee/Notified Funds80G Deduction Limit
Jawaharlal Nehru Memorial Fund50%
Prime Minister’s Drought Relief Fund50%
Indira Gandhi Memorial Trust50%
Rajiv Gandhi Foundation50%

Must Read:- Know the complete procedure to get registration u/s 80G and 12A of The Income Tax Act

80G Deduction limit- 100% with qualifying limit

80G deduction list- Donee/Notified Funds80G Deduction Limit
Donations to the government or any approved local authority, institution or association to be utilized for the purpose of promoting family planning 100%
Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India, or the sponsorship of sports and games 100%

80G Deduction limit- 50% with qualifying limit

80G deduction list- Donee/Notified Funds80G Deduction Limit
Any other fund or any institution which satisfies the conditions mentioned in Section 80G(5) 50%
Government or any local authority, to be utilized for any charitable purpose other than the purpose of promoting family planning 50%
Any authority constituted in India 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, villages or both 50%
Any corporation referred to in Section 10(26BB) for promoting the interest of the minority community 50%
For repairs or renovation of any notified temple, mosque, gurudwara, church, or other places. 50%

80G deduction calculation points

Important points- Following points are relevant while calculating the 80G deduction for the qualifying amount.

What is the qualifying amount?

Qualifying amount refers to 10% of Adjusted Total Income or the donation/contributions made (excluding the donation/contribution made for non-qualifying amount) whichever is less.

What is adjusted total income?

Adjusted Total Income- It is very simple to calculate, It is gross total income (sum of income under all heads) excluding the following incomes-

  • Amount deductible under Sections 80CCC to 80U (but not Section 80G)
  • Exempt income 
  • Long-term capital gains 
  • Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D, relating to non-residents and foreign companies  

Also Read- Know about the Section 12AB of Income Tax Act 1961- Provision and Procedure

What is the 80G deduction limit for the different assessment years?

For AY 2018-19, AY 2019-20, and for AY 2020-21:- It is just the same as described above.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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