With respect to Section 80G, no deduction is usually allowed by the employer from the salary income in respect to donations made for charitable purposes. The tax relief applicable of donations that are admissible under Section 80G will have to be claimed by the taxpayer separately while filing returns.
1. However, employers on due verification can allow, donations that have been made to the following bodies, a deduction upto 50% of the contribution –
- The Jawaharlal Nehru Memorial Fund
- The Prime Minister’s Drought Relief Fund
- The Indira Gandhi Memoria Trust,
- The Rajiv Gandhi Foundation
2. Contribution to the following bodies are deductible to the tune of 100% -
- The National Defence Fund
- Prime Minister’s National Relief Fund
- The Prime Minister’s Armenia Earthquake Relief Fund
- The Africa (Public Contributions – India) Fund
- The National Foundation for Communal Harmony
- The Chief Minister’s Earthquake Relief Fund
- The National Blood Transfusion Council
- The state Blood Transfusion Council
- The Army Central Welfare Fund
- The Indian Naval Benevolent Fund
- The Air Force Central Welfare Fund
- The National Children’s Fund
- The Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
- The National Illness Assistance Fund
- The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6, 1993
- Chief Minister’s Earthquake Relief Fund, Maharashtra
- Any Fund set up by the State Government of Gujrat for providing relief to the victims of the Gujrat earthquake
- Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for the aim of improvement of primary education in villages and towns.
- Swach Bharath Kosh set up by the Central Govt.
- The Clean Ganga Fund
- The National Fund for Control of Drug Abuse
- The Chief Minister’s Relief Fund or Lieutenant Governer’s Relief Fund in respect of any State or Union Territory
- The National Sports Fund to be established by the Central Government.
- The National Cultural Fund
- Fund for Technology Development & Application set up by the Central Govt.
- The National Trust for Welfare persons with autism, cerebral palsy, mental retardation and multiple disabilities.
3. Donations which are 100% deductible subject to not exceeding 10% of adjusted gross total income:
- The Government or any authority approved for promoting family planning
- Donation by a company towards the Indian Olympic Association or any other specified institution established for the growth of infrastructure for sports and games or sponsorship of sports and games.
4. Donations which are 50% deductible subject to not exceeding 10% of adjusted gross income
- Any fund or institution satisfying the requirements under Section 80G(5)
- The Government or any authority established for charitable purposes other than for promoting family planning.
- Any authority established in India to deal with the need for housing accommodation or for the improvement, development or planning of cities, towns, villages.
- any corporation with reference to clause (26BB) of section 10
- any amount paid by the assessee in respect of donations for the purpose of renovation or repair of any temple, gurdwara, church, mosque, or other place as notified by the Central Government (CG) in the Official Gazette to be of historic, artistic or archaeological significance or a public place of worship of renown throughout any state or states.
Verification of donations under Section 80G
1. Properly Stamped Receipt – it is mandatory to get a receipt from the charity/trust/fund to which you have made the donation. The receipt should contain the following details –
a. Name of the Trust/ Charity/Fund/institution
c. PAN number of the charity/trust/fund
d. REGISTRATION NUMBER OF TRUST/CHARITY/FUND under Section 80G and validity period of the same.
e. Name of the Donor
f. Amount donated.
2. Form 58 – If the assessee qualifies for a 100% deduction against the donation made then he must ensure he receives a Form 58 from the charity/trust/fund/institution to which the donation has been made
More points to note –
1. From financial Year 2017-18, any cash donations above Rs. 2000 do not qualify for deduction. Any mode of financial payment other than cash (for e.g. cheque or bank transfer but not clothes or food) qualifies for deductions under Section 80G.
2. Donations paid through non-taxable income cant be used for deductions. Only donations made through taxable income qualifies.