Deduction 80G: Donations Allowed for Deduction A.Y. 2024-25

Deduction 80G – List of Donations Allow for Deduction under section 80G: The government of India has allowed some of the donations eligible for deduction from your income tax. We will discuss here how you can get the deduction 80G and which donations are eligible for deduction under section 80G.

For a common man, Section 80G is an opportunity to claim a deduction by way of making donations and charity. A person who has made donations or charity in the financial year 2023-24 and financial year 2024-25, can claim the same as a deduction while filing his IT return. This section is applicable to individuals, firms and even companies. However, it should be noted that deduction is only available under cases where a donation/ charity has been made to an organization which has Government recognition.

Let’s take an example to make things clear. Suppose Mr Ramesh has made a donation to APSWDP for INR 50, 000 in the F.Y.2023-24. Now, he can claim the same amount as a deduction because APSWDP is a recognized organization by Government. Issues such as helping a poor person, donating to beggars, etc., are not under the purview of this section.

Section Description
Purpose Allows individuals, firms, and companies to claim deductions on donations to government-recognized organizations.
Eligibility Donations must be made to organizations recognized by the government, and only cash or cheque donations are accepted. Donations in kind are not eligible.
Example Donation to APSWDP for INR 50,000 in FY 2023-24 is eligible for deduction.
Mode of Payment Payment must be made via cheque, draft, or cash. Donations over INR 2000 must not be made in cash.
Proof of Donation Receipt of donation is required to claim the deduction.
Procedure Mention payment of donation in the ITR form (Tables A, B, C, D).
Amount of Deduction Varies between 100% and 50%, with or without restrictions.
100% Deduction Donations to specific institutions such as the National Defence Fund, PM National Relief Fund, Clean Ganga Fund, and more.
50% Deduction Donations to organizations like Jawaharlal Nehru Memorial Fund, Rajiv Gandhi Foundation, and others.
100% Deduction Subject to 10% of Adjusted Gross Total Income Donations for promoting family planning or to the Indian Olympic Association for sports infrastructure.
50% Deduction Subject to 10% of Adjusted Gross Total Income Donations to minority community corporations, local authorities for charitable purposes, and repairs of religious places.
Important Notes Gross total income should be reduced by deductions under sections 80C to 80U (except 80G), tax-free income, long-term and short-term capital gains, and specific incomes of non-residents/foreign companies. Donations by employees through employers to specified funds are also eligible.
Related Section Deduction 80GG: Deduction for Rent Paid A.Y. 2024-25.

Mode of Payment

  • The deduction 80G is allowed only when the payement for donation is made via a cheque, draft, or cash. Donation in kind/favour is not acknowledged by the IT Department. But keep in mind the following points while calculating deduction of 80G.
  • The donation of more than Rs.2000 in cash is not allowed. Therefore, whenever you are making a donation over Rs.2000, you should use alternative payment methods.

Eligibility for Deduction under Section 80G

The IT Department of India demands proof of donations. Therefore, there are two things which should keep in mind-

  • Receipt of Donation– Every Government recognized trust issues a receipt for a donation received. As a taxpayer, you are required to show those receipts to the IT Department at the time of claiming deduction under Section 80G. Failure to do so will result in the cancellation of the deduction.
  • Donations in Cash/ Cheque are only acknowledged– Donation in kind/favour is not acknowledged by the IT Department. For a taxpayer, donations should be either made in Cash or Cheque, any other does not qualify for the deduction.

The scope of Section 80G is an important area for claiming the deduction. As a taxpayer, you can immediately take advantage of this section without getting into the complexities of investments.

Procedure to Claim Deduction 80G

You have to mentioned in ITR form about payment of donation  to claim the deduction under section 80G. It is very simple procedure as there are columns in ITR as Table A, Table B, Table C and Table D. You are required to fill the table as per the requirment.

Amount of Deduction 80G

Based on Section 80G, various donations can be deducted up to 100% or 50%, with or without restrictions.

80G Deduction 100% Allowed

100% deduction is allowed in respect of donations to:

Allowable to: An assessee who has made donation to a specified institution- during the year. Amount of Deduction:

(1) 100% deduction is allowed in respect of donations to:

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

Deduction 80G – 50% Allowed

50% deduction is allowed in respect of donations to:

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • Rajiv Gandhi Foundation
  • Indira Gandhi Memorial Trust

List of Donations eligible for 100% deduction subject to 10% of adjusted gross total income

  • Donations to the government or any approved local authority, institution or association to be utilised to promote family planning
  • Donation by a company to the Indian Olympic Association or any other notified association or institution established in India to develop infrastructure for sports and games in India or sponsor sports and games in India.

List of Donations eligible for 50% deduction subject to 10% of adjusted gross total income

  • Any corporation referred to in Section 10(26BB) for promoting the interest of the minority community.
  • Any authority constituted in India to deal with and satisfy the need for housing accommodation or the purpose of planning, developing or improvement of cities, towns, villages or both.
  • For repairs or renovation of any notified temple, mosque, gurudwara, church, or other places.
  • Government or any local authority, to be utilised for any charitable purpose other than promoting family planning.
  • Any other fund or institution satisfies the conditions mentioned in Section 80G(5).

Important Notes for Deduction 80G

(1) ‘Gross total income’ for this purpose shall be reduced by following amounts:

(i) deductions allowable u/ss 80C to 80U (except 80G);

(ii) income on which tax is not payable; [Sec. 80G(4)]

(iii) long-term capital gains; [Sec. 112(2) and 112A(7)]

(iv) short-term capital gains taxable u/s 111A; [Sec. 111A(2)]

(v) incomes referred to u/s 115A, 115AB, 115AC or 115AD, in relation to certain non-residents/foreign companies.

(2) It has been clarified that where employees make donations to the Prime Minister’s National Relief Fund, the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund through their respective employers, the claim in respect of such donations will be admissible u/s 80G on the basis of the certificate issued by the DDO/ Employer in this behalf.’

Check Also: Deduction 80GG: Deduction for Rent Paid A.Y. 2024-25

6 thoughts on “Deduction 80G: Donations Allowed for Deduction A.Y. 2024-25”

  1. I had donated Rs.24000/- towards The National Boys and Girls Education Society, Mylapore. Whether I can claim deductions under 80G, if so, how much.

    Reply
  2. how to calculate income from property let out.Is nri is required to submit return if incomE in india is less than 2.5 laks. does h eligible for deduction under section 80 c and 8o d.of act

    Reply
  3. its very good explanation which helps for the people of accounts dept it works/helps like online eduction thanks for the same

    Reply

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