80G Exemption

Donations Qualifying for 80G Exemption

Donations Qualifying for 80G Exemption

80G Certificate exempts part or full payment of taxes if you have made donations to charitable trusts and organizations that are registered to offer you exemptions from taxes. For e.g. A charitable organization or trust registered under section 12A, allows you to avail tax exemption under section 80G. There is however a maximum allowable deduction criterion. The criterion is if the aggregate of the amount you donate exceeds 10% of the total gross income, then the excess amount will not qualify for tax benefit. 80G certificates made its way into law book in the year 1967-68 and it continues to be an important tax-saving certificate. Any person who makes an eligible donation is entitled to avail tax exemption under 80G. The Government has notified eligible organisations, funds, trusts and NGOs that qualify for deduction u/s 80G.

Institutions that qualify for 100% tax exemption under section 80G without qualifying limit

  • Prime Minister’s National Relief Fund
  • National Defence Fund
  • Prime Minister’s Armenia Earthquake Relief Fund
  • The Africa (Public Contribution – India) Fund
  • The National Foundation for Communal Harmony
  • Approved university or educational institution of national eminence
  • The Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Donations made to Zila Saksharta Samitis
  • The National Blood Transfusion Council or a State Blood Transfusion Council
  • The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund
  •  Chief Minister’s or Lt. Governor’s Relief Fund
  • National Sports Fund
  • National Cultural Fund
  • Government/local authority/institution/association towards promoting family planning
  • Central Governments Fund for Technology Development & Application
  • Army Central Welfare Fund, Indian Naval Ben. Fund, Air Force Central Welfare Fund.
  • National Illness Assistance Fund
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities
  • Indian Olympic Association/other such notified association
  • Andhra Pradesh Chief Minister’s Cyclone Relief Fund
  • Donations that are made by any assessee either resident or non-resident to the Swachh Bharat Kosh set up by the Central Government.
  • Donations made by a resident assessee to Clean Ganga Fund that has been set up by the Central Government.
  • National Children’s Fund
  • The National Fund for Control of Drug Abuse

Institutions that qualify for 50% deductions without qualifying limit

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

Institutions that qualify for 100% deductions subject to the qualifying limit

  • Donations to Indian Olympic Association or to any other association or institution that is established in India and notified by the Central Government for the following:
  • Donations to Government or any local authority involved in promoting family planning

Institutions that qualify for 50% deductions subject to the qualifying limit

  • Any donations made to Government or local authority for the purpose of charity besides promotion of family planning qualifies for exemption u/s 80G.
  • Any authority constituted in India by or under any law for satisfying the need for housing accommodation or for the need of planning development or improvement of cities, towns and village or for both.
  • Any corporation established by the Central or State Government specified under section 10(26BB) for the purpose of promoting interests of the members of a minority community.
  • Any notified temple, mosque, gurdwara, church or other place notified by the Central Government to be historic, archaeological or artistic importance, for renovation or repair of such place.

For applying the qualifying limit, all donations made to funds/institutions covered under (C) and (D) above would be aggregated and the aggregate amount would be limited to 10% of Adjusted Gross Total Income.

Adjusted Gross Total Income

The Adjusted Gross Total Income as reduced by the following:

  • Long-term capital gains, if any, which have been included in the “Gross Total Income“.
  • Short-term capital gains of nature referred to in section 111A that is a short-term capital gain on transfer of shares through a recognised stock exchange deduction under this section 80G.
  • The income on which income-tax is not payable that is a share from the Association of Persons (AOP).
  • The income referred to in section 115A, 115AB, 115AC or 115AD. These sections relate to incomes of NRIs and foreign companies etc. that are taxable at the special rate of tax.

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