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 Funds | 80G Deduction Limit |
---|---|
National Defence Fund set up by the Central Government | 100% |
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 Funds | 80G Deduction Limit |
---|---|
Jawaharlal Nehru Memorial Fund | 50% |
Prime Minister’s Drought Relief Fund | 50% |
Indira Gandhi Memorial Trust | 50% |
Rajiv Gandhi Foundation | 50% |
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 Funds | 80G 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 Funds | 80G 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.
Join our Social Community
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.
Feedback/Suggestion- Hope you all find it useful, please give your valuable feedback & let us know if there is an error. Thanks in Advance
Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)