Income Tax on Donations

Section 80G

For the Assessment Year 2009-10 For the Assessment Year 2006-07

Donations to electoral trusts to be allowed as a 100 percent deduction in the computation of the income of the donor.

Under this section deduction is made in respect of donations to certain funds, charitable institutions, etc. Deduction is not available for donations given in kind.

The deduction is available only for the entity to which donations is made is an approved charitable institution by the government. A receipt of the institute, in evidence made, should be attached to the return of income.

Section 80GG

Under this section a non-salaried person or a salaried person, if, not getting house rent allowance, he/she can claim to the deduction for the rent he pays for a residential accommodation. The deduction available is least of the following:

Rent paid in excess of 10 per cent of total income.
25 per cent of total income.
Rs 2,000 per month.

The total income of the individual is computed after reducing the amount deductible under other sections, receipts exempt from tax, and long-term & short-term capital gains taxable at concessional rates.

The deduction is not available if the assessee or his spouse or minor child owns the accommodation in which he stays or works, or carries on his business or profession. Deduction is even not allowned, if the assessee owns a house in any other place, and the concession in respect of self-occupied house is claimed by him.

Section 80GGA

An individual, who is not engaged in any business or profession, is eligible for a deduction of the amount donated to certain institutions engaged in scientific research, rural development, etc.

Section 80GGC

It is the deduction in respect of contributions given by any person to political parties. An individual shall be allowed to a deduction of any amount contributed by him to a political party.

Approved Entities Under Section 80G (Donation)

Particulars	Qualifying Amount (% of Contribution)	Whether Restricted to 10% of Gross Total Income
National Defence Fund	100	No
Jawaharlal Nehru Memorial Fund	50	No
Prime Minister's Drought Relief Fund	50	No
Prime Minister's National Relief Fund	100	No
Prime Minister's Armenia Earthquake Relief Fund	100	No
Africa (Public Contributions-India) Fund	100	No
National Children's Fund	50	No
Indira Gandhi Memorial Trust	50	No
Rajiv Gandhi Foundation	50	No
National Foundation for Communal Harmony	100	No
Approved university/educational institution	100	No
Chief Minister's Earthquake Relief Fund	100	No
Zila Saksharta Samiti	100	No
National Blood Transfusion Council	100	No
Medical Relief Funds of state govt.	100	No
Army Central Welfare Fund, Indian Naval Ben. Fund, Air Force Central Welfare Fund	100	No
National Illness Assistance Fund	100	No
Chief Minister's or Lt. Governor's Relief Fund	100	No
National Sports Fund	100	No
National Cultural Fund	100	No
Donations to govt./ local authority for charitable purposes (excluding family planning)	50	Yes
Authority/ corporation having income exempt under erstwhile section or u/s 10(26BB)	50	Yes
Govt./ local authority/institution/ association towards promoting family planning	100	Yes
Donations for repair/ renovation of notified places of worship	50	No
Central Govt.'s Fund for Technology Development & Application	100	No
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities	100	No
Indian Olympic Association/ other such notified association	100	No
Any other approved fund or institution	50	Yes
Andhra Pradesh Chief Minister's Cyclone Relied Fund	100	No

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