How to claim income tax deduction for donation – Section 80G

During the financial year an employee may have donated certain amount out of his salary to a trust or any other institutions for charity. Such donation can be claimed as tax deduction only if it is donated to a trust or institution which is approved by government of India to receive donation under section 80G of the Income Tax Act, 1961.

Now the question is how to claim tax deduction u/s 80G.

Certain tax deductions can be claimed by submitting proof of donations to your employer and in some other cases donations can only be claimed by the individual while filling tax return.How to claim income tax deduction for donation - Section 80G of IT act

Deduction on Donation through employer

Following donations can be claimed as a tax deduction by submitting the proof of payment to the employer, if its donated through your employer;

  1. Prime minister national relief fund
  2. Chief minister relief fund
  3. lieutenant governor’s relief fund

In cases where employees are contributing to these funds through their employer, it is not possible for such funds to issue separate certificate to each employee who has contributed to such funds as contributions are in the form of a consolidated cheque.

All employees donated to such fund can claim tax deductions under section 80G through their employer.

Such donations will be part of your form 16 on the basis of which you can file IT return. In this case, certificate issued by the employer will be considered as proof of payment.

Deductions on Donation through tax return

Employees donated on their own can not claim tax benefit by submitting the payment receipt to their employer.

To claim such deductions you need to mention it while filling your income tax return.

You need not submit the receipt or any other proof for your donations along with your return. You need to retain the proof payment as it will be required in case assessing officer asked for such proof.

Other relevant points to claim deduction U/S 80G

  • Donations above Rs. 10, 000 should be paid through a cheque. If it is paid in cash then such amount cannot be claimed as tax deduction under section 80G of IT act.
  • Before donating please ensure that the fund or institution is approved by government to claim deduction under section 80G. You can verify it from 80G certificate is issued by IT department to the fund or institution.
  • The receipt should contain
    • Name and address of the trust
    • PAN of the trust or institution
    • Your name
    • Registration number
    • Validity period of registration
    • No maximum or minimum amount is specified under section 80G but deductions in certain cases are limited to 10% of the gross total income.

A self employed person in all cases can claim tax deductions while filling his annual IT return.

They need not attach donation proof while filling IT return. However such proof has to be produced before the assessing officer if it is asked for.

Recommended Read: Detail provision of Section 80G of IT act.

12 thoughts on “How to claim income tax deduction for donation – Section 80G

  1. ashok chauahan

    Dear Sir ,

    I was filling the income tax return , i wan to enter the amount under section 80G as i have donoted some amount under Prime minister relief fund , i wan to fill that amount in the ITR 1 but the grey block for 80G not allow me to enter the amount what can i do for the same .
    Please help for the same .

  2. Shiva

    Hi

    I am facing a similar problem. While filing ITR online, the grey cell against 80G section does not allow me to change it. What do I do ?

    I would really appreciate anyone’s help on this.

    Thanks,
    Shiva

  3. ANDHRAWALE LOSONBABA

    I have a Charitable trust Name ANDHRA WALE BABA TRUST and 80G for tax exemption but nobody to help which way to go if somebody help me to help the poor and needy???

  4. Aravind Kamath K

    For all the folks who highligted about 80G not being enabled.. There is a tab which specifically takes data related to 80G in the same sheet, Please click on it and enter all the details to get 80G value in another tab

    1. sumugan

      thanks… i could not see the 80Gsheet while size of window small….your clue helped

  5. Subhra

    I have donated during Nepal earthquake. Don’t have any receipt since it was deposited by our organization. How do i fill in the address details to claim deduction under 80G(02)?

  6. jo

    i submitted receipts to employer and my tax was calculated and deducted accordingly. NOw do i need to submit receipts while filing returns?

  7. SEKAR

    How to claim tax deduction under ITR-1 80G which was missed in the previous year 15-16 statement ?

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