Section 80G of Income Tax Act "Deduction in respect of donations to certain funds, charitable institutions, etc"
80G. (1) In computing the total income of an assessee,
there shall be deducted, in accordance with and subject to
the provisions of this section,-
(i) in a case where the aggregate of the sums specified in
sub-section (2) includes any sum or sums of the nature
specified in sub-clause (i) or in sub-clause (iiia) or in
sub-clause (iiiaa) or in sub-clause (iiiab) or in sub-clause
(iiib) or in sub-clause (iiie) or in sub-clause (iiif) or in
sub-clause (iiig) or in sub-clause (iiiga) or sub-clause (iiih)
or sub-clause (iiiha) or sub-clause (iiihb) or sub-clause (iiihc)
or sub-clause (iiihd) or sub-clause (iiihe) or sub-clause (iiihf)
or sub-clause (iiihg) or sub-clause (iiihh) or sub-clause (iiihi)
or sub-clause (iiihj) or sub-clause (iiihk) or sub-clause (iiihl)
or sub-clause (iiihm) or in sub-clause (vii) of clause (a)
or in clause (c) or in clause (d) thereof, an amount equal
to the whole of the sum or, as the case may be, sums of such
nature plus fifty per cent of the balance of such aggregate;
and
(ii) in any other case, an amount equal to fifty per cent
of the aggregate of the sums specified in sub-section (2).]
(2) The sums referred to in sub-section (1) shall be the
following, namely :-
(a) any sums paid by the assessee in the previous year as
donations to-
(i) the National Defence Fund set up by the Central
Government; or
(ii) the Jawaharlal Nehru Memorial Fund referred to in the
Deed of Declaration of Trust adopted by the National
Committee at its meeting held on the 17th day of August,
1964; or
(iii) the Prime Minister's Drought Relief Fund; or
(iiia) the Prime Minister's National Relief Fund 24[or the
Prime Minister's Citizen Assistance and Relief in Emergency
Situations Fund (PM CARES FUND)]; or
(iiiaa) the Prime Minister's Armenia Earthquake Relief Fund;
or
(iiiab) the Africa (Public Contributions - India) Fund; or
(iiib) the National Children's Fund; or
(iiic) the Indira Gandhi Memorial Trust, the deed of
declaration in respect whereof was registered at New Delhi
on the 21st day of February, 1985; or
(iiid) the Rajiv Gandhi Foundation, the deed of declaration
in respect whereof was registered at New Delhi on the 21st
day of June, 1991; or
(iiie) the National Foundation for Communal Harmony; or
(iiif) a University or any educational institution of
national eminence as may be approved by the prescribed
authority in this behalf; or
(iiig) the Maharashtra Chief Minister's Relief Fund during
the period beginning on the 1st day of October, 1993 and
ending on the 6th day of October, 1993 or to the Chief
Minister's Earthquake Relief Fund, Maharashtra; or
(iiiga) any fund set up by the State Government of Gujarat
exclusively for providing relief to the victims of
earthquake in Gujarat; or
(iiih) any Zila Saksharta Samiti constituted in any district
under the chairmanship of the Collector of that district for
the purposes of improvement of primary education in villages
and towns in such district and for literacy and
post-literacy activities.
Explanation.-For the purposes of this sub-clause, "town"
means a town which has a population not exceeding one lakh
according to the last preceding census of which the relevant
figures have been published before the first day of the
previous year ; or
(iiiha) the National Blood Transfusion Council or to any
State Blood Transfusion Council which has its sole object
the control, supervision, regulation or encouragement in
India of the services related to operation and requirements
of blood banks.
Explanation.-For the purposes of this sub-clause,-
(a) "National Blood Transfusion Council" means a society
registered under the Societies Registration Act, 1860 (21 of
1860) and has an officer not below the rank of an Additional
Secretary to the Government of India dealing with the AIDS
Control Project as its Chairman, by whatever name called;
(b) "State Blood Transfusion Council" means a society
registered, in consultation with the National Blood
Transfusion Council, under the Societies Registration Act,
1860 (21 of 1860) or under any law corresponding to that Act
in force in any part of India and has Secretary to the
Government of that State dealing with the Department of
Health, as its Chairman, by whatever name called; or
(iiihb) any fund set up by a State Government to provide
medical relief to the poor; or
(iiihc) the Army Central Welfare Fund or the Indian Naval
Benevolent Fund or the Air Force Central Welfare Fund
established by the armed forces of the Union for the welfare
of the past and present members of such forces or their
dependants; or
(iiihd) the Andhra Pradesh Chief Minister's Cyclone Relief
Fund, 1996; or
(iiihe) the National Illness Assistance Fund; or
(iiihf) the Chief Minister's Relief Fund or the Lieutenant
Governor's Relief Fund in respect of any State or Union
territory, as the case may be :
Provided that such Fund is-
(a) the only Fund of its kind established in the State or
the Union territory, as the case may be;
(b) under the overall control of the Chief Secretary or the
Department of Finance of the State or the Union territory,
as the case may be;
(c) administered in such manner as may be specified by the
State Government or the Lieutenant Governor, as the case may
be; or
(iiihg) the National Sports Fund to be set up by the Central
Government; or
(iiihh) the National Cultural Fund set up by the Central
Government; or
(iiihi) the Fund for Technology Development and Application
set up by the Central Government; or
(iiihj) the National Trust for Welfare of Persons with
Autism, Cerebral Palsy, Mental Retardation and Multiple
Disabilities constituted under sub-section (1) of section 3
of the National Trust for Welfare of Persons with Autism,
Cerebral Palsy, Mental Retardation and Multiple Disabilities
Act, 1999 (44 of 1999); or
(iiihk) the Swachh Bharat Kosh, set up by the Central
Government, other than the sum spent by the assessee in
pursuance of Corporate Social Responsibility under
sub-section (5) of section 135 of the Companies Act, 2013
(18 of 2013); or
(iiihl) the Clean Ganga Fund, set up by the Central
Government, where such assessee is a resident and such sum
is other than the sum spent by the assessee in pursuance of
Corporate Social Responsibility under sub-section (5) of
section 135 of the Companies Act, 2013 (18 of 2013); or
(iiihm) the National Fund for Control of Drug Abuse
constituted under section 7A of the Narcotic Drugs and
Psychotropic Substances Act, 1985 (61 of 1985); or
(iv) any other fund or any institution to which this section
applies; or
(v) the Government or any local authority, to be utilised
for any charitable purpose other than the purpose of
promoting family planning; or
(vi) an authority constituted in India by or under any law
enacted either for the purpose of dealing with and
satisfying the need for housing accommodation or for the
purpose of planning, development or improvement of cities,
towns and villages, or for both;
(via) any corporation referred to in clause (26BB) of
section 10; or
(vii) the Government or to any such local authority,
institution or association as may be approved in this behalf
by the Central Government, to be utilised for the purpose of
promoting family planning;
(b) any sums paid by the assessee in the previous year as
donations for the renovation or repair of any such temple,
mosque, gurdwara, church or other place as is notified by
the Central Government in the Official Gazette to be of
historic, archaeological or artistic importance or to be a
place of public worship of renown throughout any State or
States;
(c) any sums paid by the assessee, being a company, in the
previous year as donations to the Indian Olympic Association
or to any other association or institution established in
India, as the Central Government may, having regard to the
prescribed guidelines, by notification in the Official
Gazette, specify in this behalf for-
(i) the development of infrastructure for sports and games;
or
(ii) the sponsorship of sports and games,
in India;
(d) any sums paid by the assessee, during the period
beginning on the 26th day of January, 2001 and ending on the
30th day of September, 2001, to any trust, institution or
fund to which this section applies for providing relief to
the victims of earthquake in Gujarat.
(3) [Omitted by the Finance Act, 1994, w.e.f. 1-4-1994.]
(4) Where the aggregate of the sums referred to in
sub-clauses (iv), (v), (vi) , (via) and (vii) of clause (a)
and in clauses (b) and (c) of sub-section (2) exceeds ten
per cent of the gross total income (as reduced by any
portion thereof on which income-tax is not payable under any
provision of this Act and by any amount in respect of which
the assessee is entitled to a deduction under any other
provision of this Chapter), then the amount in excess of ten
per cent of the gross total income shall be ignored for the
purpose of computing the aggregate of the sums in respect of
which deduction is to be allowed under sub-section (1).
(5) This section applies to donations to any institution or
fund referred to in sub-clause (iv) of clause (a) of
sub-section (2), only if it is established in India for a
charitable purpose and if it fulfils the following
conditions, namely :-
(i) where the institution or fund derives any income, such
income would not be liable to inclusion in its total income
under the provisions of sections 11 and 12 or clause (23AA)
or clause (23C) of section 10 :
Provided that where an institution or fund derives any
income, being profits and gains of business, the condition
that such income would not be liable to inclusion in its
total income under the provisions of section 11 shall not
apply in relation to such income, if-
(a) the institution or fund maintains separate books of
account in respect of such business;
(b) the donations made to the institution or fund are not
used by it, directly or indirectly, for the purposes of such
business; and
(c) the institution or fund issues to a person making the
donation a certificate to the effect that it maintains
separate books of account in respect of such business and
that the donations received by it will not be used, directly
or indirectly, for the purposes of such business;
(ii) the instrument under which the institution or fund is
constituted does not, or the rules governing the institution
or fund do not, contain any provision for the transfer or
application at any time of the whole or any part of the
income or assets of the institution or fund for any purpose
other than a charitable purpose;
(iii) the institution or fund is not expressed to be for the
benefit of any particular religious community or caste;
(iv) the institution or fund maintains regular accounts of
its receipts and expenditure;
(v) the institution or fund is either constituted as a
public charitable trust or is registered under the Societies
Registration Act, 1860 (21 of 1860), or under any law
corresponding to that Act in force in any part of India or
under section 25 of the Companies Act, 1956 (1 of 1956), or
is a University established by law, or is any other
educational institution recognised by the Government or by a
University established by law, or affiliated to any
University established by law, or is an institution financed
wholly or in part by the Government or a local authority;
(vi) in relation to donations made after the 31st day of
March, 1992, the institution or fund is for the time being
25[25a[approved by the Commissioner in accordance with the
rules* made in this behalf; and]]
(vii) where any institution or fund had been approved under
clause (vi) for the previous year beginning on the 1st day
of April, 2007 and ending on the 31st day of March, 2008,
such institution or fund shall, for the purposes of this
section and notwithstanding anything contained in the
proviso to clause (15) of section 2, be deemed to have
been,-
(a) established for charitable purposes for the previous
year beginning on the 1st day of April, 2008 and ending on
the 31st day of March, 2009; and
(b) approved under the said clause (vi) for the previous
year beginning on the 1st day of April, 2008 and ending on
the 31st day of March, 2009;
(viii) & (ix) 26[***]
Following clauses (viii) and (ix) shall be inserted after
clause (vii) of sub-section (5) of section 80G by the
Taxation and Other Laws (Relaxation and Amendment of Certain
Provisions) Act, 2020, w.e.f. 1-4-2021 :
(viii) the institution or fund prepares such statement for
such period as may be prescribed and deliver or cause to be
delivered to the prescribed income-tax authority or the
person authorised by such authority such statement in such
form and verified in such manner and setting forth such
particulars and within such time as may be prescribed:
Provided that the institution or fund may also deliver to
the said prescribed authority, (a) correction statement for
rectification of any mistake or to add, delete or update the
information furnished in the statement delivered under this
sub-section in such form and verified in such manner as may
be prescribed; and
(ix) the institution or fund furnishes to the donor, a
certificate specifying the amount of donation in such
manner, containing such particulars and within such time
from the date of receipt of donation, as may be prescribed:
Provided that the institution or fund referred to in clause
(vi) shall make an application in the prescribed form and
manner to the Principal Commissioner or Commissioner, for
grant of approval,-
(i) where the institution or fund is approved under clause
(vi) (as it stood immediately before its amendment by the
Taxation and Other Laws (Relaxation and Amendment of Certain
Provisions) Act, 2020), within three months from the 1st day
of April, 2021;
(ii) where the institution or fund is approved and the
period of such approval is due to expire, at least six
months prior to expiry of the said period;
(iii) where the institution or fund has been provisionally
approved, at least six months prior to expiry of the period
of the provisional approval or within six months of
commencement of its activities, whichever is earlier;
(iv) in any other case, at least one month prior to
commencement of the previous year relevant to the assessment
year from which the said approval is sought:
Provided further that the Principal Commissioner or
Commissioner, on receipt of an application made under the
first proviso, shall,-
(i) where the application is made under clause (i) of the
said proviso, pass an order in writing granting it approval
for a period of five years;
(ii) where the application is made under clause (ii) or
clause (iii) of the said proviso,-
(a) call for such documents or information from it or make
such inquiries as he thinks necessary in order to satisfy
himself about-
(A) the genuineness of activities of such institution or
fund; and
(B) the fulfilment of all the conditions laid down in
clauses (i) to (v);
(b) after satisfying himself about the genuineness of
activities under item (A), and the fulfilment of all the
conditions under item (B), of sub-clause (a),-
(A) pass an order in writing granting it approval for a
period of five years; or
(B) if he is not so satisfied, pass an order in writing
rejecting such application and also cancelling its approval
after affording it a reasonable opportunity of being heard;
(iii) where the application is made under clause (iv) of the
said proviso, pass an order in writing granting it approval
provisionally for a period of three years from the
assessment year from which the registration is sought,
and send a copy of such order to the institution or fund:
Provided also that the order under clause (i), sub-clause
(b) of clause (ii ) and clause (iii) of the first proviso
shall be passed in such form and manner as may be
prescribed, before expiry of the period of three months, six
months and one month, respectively, calculated from the end
of the month in which the application was received:
Provided also that the approval granted under the second
proviso shall apply to an institution or fund, where the
application is made under-
(a) clause (i) of the first proviso, from the assessment
year from which approval was earlier granted to such
institution or fund;
(b) clause (iii) of the first proviso, from the first of the
assessment years for which such institution or fund was
provisionally approved;
(c) in any other case, from the assessment year immediately
following the financial year in which such application is
made.
(5A) Where a deduction under this section is claimed and
allowed for any assessment year in respect of any sum
specified in sub-section (2), the sum in respect of which
deduction is so allowed shall not qualify for deduction
under any other provision of this Act for the same or any
other assessment year.
(5B) Notwithstanding anything contained in clause (ii) of
sub-section (5) and Explanation 3, an institution or fund
which incurs expenditure, during any previous year, which is
of a religious nature for an amount not exceeding five per
cent of its total income in that previous year shall be
deemed to be an institution or fund to which the provisions
of this section apply.
(5C) This section applies in relation to amounts referred to
in clause (d) of sub-section (2) only if the trust or
institution or fund is established in India for a charitable
purpose and it fulfils the following conditions, namely :-
(i) it is approved in terms of clause (vi) of sub-section
(5);
(ii) it maintains separate accounts of income and
expenditure for providing relief to the victims of
earthquake in Gujarat;
(iii) the donations made to the trust or institution or fund
are applied only for providing relief to the earthquake
victims of Gujarat on or before the 31st day of March, 2004;
(iv) the amount of donation remaining unutilised on the 31st
day of March, 2004 is transferred to the Prime Minister's
National Relief Fund on or before the 31st day of March,
2004;
(v) it renders accounts of income and expenditure to such
authority and in such manner as may be prescribed, on or
before the 30th day of June, 2004.
(5D) No deduction shall be allowed under this section in
respect of donation of any sum exceeding two thousand rupees
unless such sum is paid by any mode other than cash.
(5E) 27[***]
Following sub-section (5E) shall be inserted after
sub-section (5D) of section 80G by the Taxation and Other
Laws (Relaxation and Amendment of Certain Provisions) Act,
2020, w.e.f. 1-4-2021 :
(5E) All applications, pending before the Commissioner on
which no order has been passed under clause (vi) of
sub-section (5) before the date on which this sub-section
has come into force, shall be deemed to be applications made
under clause (iv) of the first proviso to sub-section (5) on
that date.
(6) [***]
Explanation 1.-An institution or fund established for the
benefit of Scheduled Castes, backward classes, Scheduled
Tribes or of women and children shall not be deemed to be an
institution or fund expressed to be for the benefit of a
religious community or caste within the meaning of clause
(iii) of sub-section (5).
Explanation 2.-For the removal of doubts, it is hereby
declared that a deduction to which the assessee is entitled
in respect of any donation made to an institution or fund to
which sub-section (5) applies shall not be denied merely on
either or both of the following grounds, namely :-
(i) that, subsequent to the donation, any part of the income
of the institution or fund has become chargeable to tax due
to non-compliance with any of the provisions of section 11,
section 12 or section 12A;
(ii) that, under clause (c) of sub-section (1) of section
13, the exemption under section 11 or section 12 is denied
to the institution or fund in relation to any income arising
to it from any investment referred to in clause (h) of
sub-section (2) of section 13 where the aggregate of the
funds invested by it in a concern referred to in the said
clause (h) does not exceed five per cent of the capital of
that concern.
Explanation 2A.- 27a[***]
Following Explanation 2A shall be inserted after Explanation
2 of section 80G by the Taxation and Other Laws (Relaxation
and Amendment of Certain Provisions) Act, 2020, w.e.f.
1-4-2021 :
Explanation 2A.-For the removal of doubts, it is hereby
declared that claim of the assessee for a deduction in
respect of any donation made to an institution or fund to
which the provisions of sub-section (5) apply, in the return
of income for any assessment year filed by him, shall be
allowed on the basis of information relating to said
donation furnished by the institution or fund to the
prescribed income-tax authority or the person authorised by
such authority, subject to verification in accordance with
the risk management strategy formulated by the Board from
time to time.
Explanation 3.-In this section, "charitable purpose" does
not include any purpose the whole or substantially the whole
of which is of a religious nature.
Explanation 4.-For the purposes of this section, an
association or institution having as its object the control,
supervision, regulation or encouragement in India of such
games or sports as the Central Government may, by
notification in the Official Gazette, specify in this
behalf, shall be deemed to be an institution established in
India for a charitable purpose.
Explanation 5.-For the removal of doubts, it is hereby
declared that no deduction shall be allowed under this
section in respect of any donation unless such donation is
of a sum of money.
What is Deduction in respect of health insurance premia? Section 80D of Income Tax Act 1961
What is Deduction in respect of medical treatment, etc? Section 80DDB of Income Tax Act 1961
Section 80EEA Deduction in respect of interest on loan taken for certain house property
Section 80EEB Deduction in respect of purchase of electric vehicle
What is Deductions in respect of rents paid? Section 80GG of Income Tax Act 1961