Section 80G

What is Section 80G?

80G is section of Income Tax Act in which individual can claim donated amount towards charity, social or philanthropic purpose. This section will encourage individuals for charitable deeds towards poor and needy people / social cause.

Donations made in cash / cheque are eligible for deduction, donations made in any other form like food, clothing, medicines are not eligible.

In order to claim deduction, it is mandatory for the donor to furnish a proof of payment towards the eligible charitable fund or institution. A stamped receipt is issued by the recipient trust in this regard, which must be attached by the assessee along with the income tax returns. The receipt must include the following details:

• Name and address of the trust
• The name of the donor
• The amount donated, mentioned in words and figures
• The registration number of the trust, as given by the income tax department under section 80G, along with its validity period.

Tax benefits cannot be claimed without the above mentioned details and document.

Donations made to any charitable trust / institution are not eligible for deduction. There are list of approved charitable institutions as below:

• National Defense Fund
• National Sports Fund
• National Cultural Fund
• Zila Saksharta Samiti
• National Blood Transfusion Council
• National Children’s Fund
• Prime Minister’s Drought Relief Fund
• Prime Minister’s National Relief Fund
• Approved university / educational institution
• Medical Relief Funds of a state government
• Fund for Technology Development and Application set up by the Central Government
• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
• Jawaharlal Nehru Memorial Fund
• Africa (Public Contributions-India) Fund
• Indira Gandhi Memorial Trust
• Rajiv Gandhi Foundation
• National Foundation for Communal Harmony
• Army Central Welfare Fund, Indian Naval Benefit Fund, Air Force Central Welfare Fund
• National Illness Assistance Fund
• Chief Minister’s or Lt. Governor’s Relief Fund (Some conditions apply)
• Any other approved fund or institution
• Donations to government / local authority for charitable purposes (excluding family planning)
• Government / local authority / institution / association towards promoting family planning

There are other charitable trusts / institutions which are not covered in this list. Individual can check with trust.

Limit of Section 80G:

Individual can take benefit of 50% or 100% of donation based on institution in which individual donated. There is one additional condition on some charitable institution - donations above 10% of Adjusted Gross Total Income (GTI) can be allowed for deduction only upto 10% of your adjusted GTI. Thus, even if individual make a donation larger than 10% of adjusted GTI, the donation eligible for deduction would be capped at 10% of adjusted GTI. 

Adjusted Gross Total Income calculated as below:

Particulars	Amount of deduction allowed (as % of the contribution)	Whether restricted to 10% of Gross Total Income (GTI)
National Defense Fund	50	No
National Sports Fund	100	No
National Cultural Fund	100	No
Zila Saksharta Samiti	100	No
National Blood Transfusion Council	100	No
National Children’s Fund	100	No
Prime Minister’s Drought Relief Fund	50	No
Prime Minister’s National Relief Fund	100	No
Approved university / educational institution	100	No
Medical Relief Funds of a state government	100	No
Fund for Technology Development and Application set up by the Central Government	100	No
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities	100	No
Jawaharlal Nehru Memorial Fund	50	No
Africa (Public Contributions-India) Fund	100	No
Indira Gandhi Memorial Trust	50	No
Rajiv Gandhi Foundation	50	No
National Foundation for Communal Harmony	100	No
Army Central Welfare Fund, Indian Naval Benefit Fund, Air Force Central Welfare Fund	100	No
National Illness Assistance Fund	100	No
Chief Minister’s or Lt. Governor’s Relief Fund (Some conditions apply)	100	No
Any other approved fund or institution	50	Yes
Donations to government / local authority for charitable purposes (excluding family planning)	50	Yes
Government / local authority / institution / association towards promoting family planning	100	Yes