Donations under Section 80G

Donations under Section 80G

All donations that you make do not get tax benefit. You can claim  tax benefits only on specific donations i.e.  the donations that are made to the prescribed list.

Maximum tax benefit: 10% of the of the adjusted gross total income, the amount in excess of 10% does not qualify for for tax benefit.

Qualifying Limit: The qualifying limits u/s 80G is 10% of the adjusted gross total income. Adjusted Gross Total Income:  is the Gross Total Income (i.e. the sub total of income under various heads) minus the following amount:

• Exemptions to the income
• Investments made under Sections 80CCC to 80U (but not Section 80G)
• Long-term capital gains

If the donation so made is deducted by the employer from the salary of employee then the employee can claim the benefit if a certificate is provided by the employer which states that the contribution was made from the salary account of the employee.

There are 4 categories under section 80 G:

1. 100% deduction without any qualifying limit (e.g., Prime Minister’s National Relief Fund).

2. 50% deduction without any qualifying limit (e.g., Indira Gandhi Memorial Trust).

3. 100% deduction subject to qualifying limit (e.g., an approved institution for promoting family planning).

4. 50% deduction subject to qualifying limit (e.g., an approved institution for charitable purpose other than promoting family planning).

Please note that donations made to foreign trusts and political parties do not qualify for deduction under this section.