Section 80G allows to save income tax in the form of donations to specific charitable institutions. The amount you donate can be claimed with the help of old tax regime. Anyone can claim Section 80G including Individuals, companies, HUF, NRI (non resident Indian), etc. Based on the institution selected the deduction limits can be 100% or 50%, with or without maximum limits to be deducted.
Let us understand Section 80G in more detail.
What is Section 80G?
- Section 80G of income tax act allows you to claim tax deduction if you make donations in a financial year
- These donations can be made to specific institutions in order to be claimed with old tax regime.
- An individual, company or firm, HUF or NRI can claim this deduction to save income tax
- Based on the relief fund or charitable institution, the deduction can be claimed as 100% or 50% of amount, with or without upper limit restrictions
Section 80G Deduction Limits
based on the relief funds or charitable organization selected for the purpose of donation, the amount can be claimed as 100% or 50%, with or without maximum limits.
We will discuss about such relief funds and organizations in detail below.
List of Donations with 100% Deduction
Here’s the list of donations to organizations or funds that can be claimed as 100% of the amount donated:
- National Defence Fund set up by the Central Government
- Prime Minister’s National Relief Fund or PM CARES
- National Foundation for Communal Harmony
- An approved university/educational institution of National eminence
- Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
- Fund set up by a state government for medical relief to the poor
- National Illness Assistance Fund
- National Blood Transfusion Council or any State Blood Transfusion Council
- National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
- National Sports Fund
- National Cultural Fund
- Fund for Technology Development and Application
- National Children’s Fund
- Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
- 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
- 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 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 between January 26, 2001, and September 30, 2001)
- Prime Minister’s Armenia Earthquake Relief Fund
- Africa (Public Contributions – India) Fund
- Swachh Bharat Kosh (applicable from FY 2014-15)
- Clean Ganga Fund (applicable from FY 2014-15)
- National Fund for Control of Drug Abuse (applicable from FY 2015-16)
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List of Donations with 50% Deduction
Here’s the list of donations to organizations or funds that can be claimed as 50% of the amount donated:
- Prime Minister’s Drought Relief Fund
- Jawaharlal Nehru Memorial Fund
- Indira Gandhi Memorial Trust
- Rajiv Gandhi Foundation
Donations with 100% Deduction subjected to 10% Gross Income
- Donations to the government or any approved local authority, institution or association to be utilized for family planning
- Donations 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.
ALSO READ: Section 80C Deductions List
What is 80G 100% deduction limit?
80G 100% deduction limit means the entire donation amount can be claimed as deduction to save income tax. List of such relief funds and organizations is mentioned above.
What is the limit for Section 80G donation in cash?
Section 80G limit for donation in cash is Rs. 2000. Any amount donated above Rs. 2000 in cash will not be eligible to be claimed under 80G.
Other modes of payment include Cheque or Demand Draft, and online transfer in some cases to claim 100% of the amount.
Conclusion
So Section 80G of income tax act allows you to donate required amount that can be claimed as deduction with old tax regime.
Note that you cannot claim this deduction with new tax regime.
Some more Reading:
- Section 80CCD Income Tax Deduction – NPS and APY
- Savings Account Interest Tax Exemption under Section 80TTA
- Section 24 Income Tax Deduction on Home Loan Interest
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