Section 80G – Tax deductions for Donations to specific fund

Any person can claim income tax deduction under section 80G of the Income tax act, 1961, for the amount donated to approved funds or charitable institutions.

To understand section 80G of the Income tax act, 1961, we have divided types of donation in to two parts. For “Type I” donations we need not do any calculation. If we have donated to a fund that is coming under “Type I” donation list then we need to take 100% or 50% of the donated amount as tax deduction under section 80G.

If you donated to a fund or charitable institution and that fund or charitable institution is coming under “Type II” donation list then you need to follow the steps as mentioned below for calculating tax deduction under section 80G. 

Type I Donations

Here is the list where you get 100% tax deduction under section 80G

If any one has donated to following funds during the financial year then they can claim 100% income tax deduction under section 80G on the amount donated.

• National Defence Fund
• PM National Relief Fund
• PM Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)
• National Children’s Fund
• CM Relief Fund or the Lieutenant Governor’s Relief Fund
• Zila Saksharta Samiti
• Army Central Welfare Fund
• Indian Naval Benevolent Fund
• Air Force Central Welfare Fund
• Andhra Pradesh CM Cyclone Relief Fund
• National Sports Fund
• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
• Swachh Bharat Kosh (not being in pursuance of CSR)
• Clean Ganga Fund (not being in pursuance of CSR) – Only to the resident assessee
• National Fund for Control of Drug Abuse
• National Illness Assistance Fund
• National Blood Transfusion Council or State Blood Transfusion Council
• Fund set up by a State Government for the medical relief to the poor
• National Cultural Fund
• Fund for Technology Development and Application
• National Foundation for Communal Harmony
• PM Armenia Earthquake Relief Fund
• Africa (Public Contributions – India) Fund
• CM Earthquake Relief Fund, Maharashtra
• An university or educational institution of National eminence approved by the tax authorities
• Fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat.

Any donation to PM Drought Relief Fund will be eligible for income tax deduction under section 80G up to 50% of the donated amount.

Due to the amendment made by The Finance Act of 2023, Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust and Rajiv Gandhi Foundation are not be eligible for income tax deduction under section 80G.

Type II donations

For certain donations, tax deduction under section 80G will be restricted up to 10% of the adjusted gross total income.

Under this section, we have two sets of deductions. Donation to few funds are to be taken @100% of the donated amount and for some other donations only 50% has to be considered.

For following donations we have to consider 100% of the donated amount subject to 10% of the adjusted gross total income as income tax deduction under section 80G of IT act.

• Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India. However, the deduction for donations to these institutions is allowed only to a company and not to individuals.
• Government or any approved local authority, institution or association to be utilised for the purpose of promoting family planning.
• Family Planning Association of India/Red Cross Society of India

For following donations we have to consider 50% of the donated amount subject to 10% of the adjusted gross total income as income tax deduction for section 80G of IT act.

• Renovation of notified temple, mosque, church or gurudwara or any other notified place of national importance.
• Donation to the Government or any local authority to be utilized by them for any charitable purposes other than the purpose of promoting family planning.
• Corporation established by government for promoting interest of scheduled caste or schedule tribe or backward class.
• Any authority set up for providing housing accommodation or town planning
• Any approved public trust or institution.

Steps for calculating IT deduction u/s 80G for type II donations

Here are the steps to calculate income tax deduction under section 80G for type II donations.

• Step 1: calculate adjusted gross total income after deducting tax deductions available u/s 80C to 80U except tax deduction under section 80G, long term capital gain if any, short term capital gain on listed securities if any.
• Step2: calculate 10% on step 1 (i.e. adjusted gross total income)
• Step 3: calculate actual donations (50% or 100% of the donated amount as listed above under type II donations)
• Maximum amount that can be claimed as an tax deduction under section 80G is lower of step 2 or step 3.

Other relevant points for income tax deduction under section 80G

• Donation in kind will not be eligible for income tax deduction under section 80G of income tax act.
• Amount in excess of Rs 2, 000 has to be compulsorily paid in any mode other than cash. If it is paid in cash then it will not be eligible for income tax deduction under section 80G. Amount lower then Rs 2, 000 or equal to Rs2 , 000 can be donated in cash to claim income tax deduction under section 80G.