Skip to main content

What is the mode of payment under Section 80G?

What is the mode of payment under Section 80G?

Taxpayers in India can claim deductions under Section 80G for eligible donations. Here are the key modes through which donations can be made:

Cheque:
Donations made via cheque are eligible for Section 80G deductions.

Demand Draft:
Contributions made through demand drafts also qualify for Section 80G benefits.

Cash (for donations below Rs 2,000):
Cash donations are accepted for deductions if they are below Rs 2,000.

Note: In-kind contributions such as food, material, clothes, medicines, etc., and donations exceeding Rs 2,000 should not be in cash to qualify for Section 80G deductions.


Criteria for Deductions:

Eligible Donations:
Various donations specified in Section 80G are eligible for deductions.

Deduction Percentage:
The deductions can be up to 100% or 50% with or without restrictions, as specified in Section 80G.


Section 80G Deduction: Eligible List of Funds/Charitable Institutions for Donations

The prescribed funds and charitable institutions are divided into two categories:

Category 1: Donations where the deduction is available without any qualifying limit. This is further sub-categorized into funds with

  • :- 100% deduction without qualifying limit and
  • :- 50% deduction without qualifying limit

Category 2: Donations where deduction available is subject to a qualifying limit. This is further sub-categorized into funds with

  • :- 100% deduction subject to qualifying limit and
  • :- 50% deduction subject to qualifying limit

List of donations eligible for 100% deduction without qualifying limit

National Defence FundPrime Minister’s National Relief FundPrime Minister’s Armenia Earthquake Relief FundAfrica (Public Contribution-India) FundNational Children’s Fund
National Foundation for Communal HarmonyA university or any other educational institute of national eminence as may be approved by the prescribed authority.Maharashtra Chief Minister’s Earthquake Relief FundAny fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in GujaratZila Saksharta Samiti constituted in Gujarat
National Blood Transfusion Council or State Blood Transfusion CouncilA fund set up by a State Govt. for the medical relief of the poor.Central Welfare Fund of the Army & Air Force or the Indian Naval Benevolent FundNational Illness Assistance FundChief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund
National Sports Fund set up by the CGNational Cultural Fund set up by the CGFund for Technology Development and Application set up by the CGAndhra Pradesh Chief Minister’s Cyclone Relief FundNational Welfare Trust for persons with Autism, Cerebral Palsy, Mental retardation and multiple disabilities
Swachh Bharat Kosh (Available to all assessees)Clean Ganga Fund set up by the CG (Available to resident assessee)National Fund for Control of Drug Abuse

List of donations eligible for 50% deduction without qualifying limit

FUND NAMEDEDUCTION ALLOWED
Prime Minister’s Drought Relief Fund50%

List of donations eligible for 100% deduction subject to 10% of adjusted gross total income

FUND NAMEDEDUCTION ALLOWED
Govt. or any approved local authority, institution, or association to be utilized for promoting family planning100%
The Indian Olympic Association or any other notified association or institution for the development of infrastructure for the development of sports and games in India or sponsorship of sports and games (Note: this deduction is only available to companies)100%

List of Donations eligible for 50% deduction subject to 10% of adjusted gross total income

FUND NAMEDEDUCTION ALLOWED
Any other approved fund or institution which satisfies the conditions mentioned in section 80G(5)50%
Govt. or any local authority, institution or association to be utilized for any charity purpose other than the purpose of promoting family planning50%
An authority constituted in India for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning the development of towns, villages, etc.50%
A corporation specified in section 10(26BB) for promoting the interest of minority community50%
Any notified temple, mosque, gurudwara, church, or other place notified by the CG (for renovation or repair)50%

Comments

Post a Comment

Popular posts from this blog

Timely Payments to MSMEs: Decoding Section 43B(h) of Income Tax Act , 1961

Introduction:  The Finance Act, 2023, introduces significant changes with the insertion of clause h in section 43B of the Income Tax Act, strengthening the enforcement of MSME payment regulations. This analysis dives into the implications for small businesses, examining the provisions of the Income Tax Act, 1961, and the MSMED Act, 2006. Particularly, section 43B(h) is explored, addressing the disallowance of expenses for payments not made within the specified time limit. The article delves into the definitions of micro, small, and medium enterprises (MSMEs) and the crucial payment periods outlined in the MSMED Act.   Section 43B (h):  “any sum payable by the assessee to a MICRO or SMALL enterprise beyond the time limit specified in 15 of the Micro, Small and Medium Enterprises Development Act, 2006,” The enterprise category as Micro, Small & Medium as described in the Micro, Small and Medium Enterprises Development Act, 2006 is made for your reference: Micro Enterpri...
Post a Comment
Read more

GST LUT – File Letter of Undertaking (LUT) Online

Letter of Undertaking is commonly known as LUT. The  GST LUT  is prescribed to be furnished in form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfill all the requirements prescribed under  GST  while exporting without making IGST payment. Know more about  exports under GST. Filing Letter of Undertaking is mandatory to export goods or service or both without payment of Integrated Taxes (IGST). If LUT has not been furnished, the export can only be made through payment of IGST or by furnishing an export bond. Initially, only the options of export bond was allowed. However, to improve ease of doing business, the Government introduced LUT. LUT was to be filed offline at the concerned GST office. Now, the Government has made the process of filing GST LUT online. Now, exporters can file LUT online through their respective GST Portal account easily by following the steps below. Eligibility for Export under LUT All GST registered goo...
Post a Comment
Read more

Live : Press Conference by Union Finance Minister Nirmala Sitharaman after 53rd GST Council Meeting

  Press Conference by Union Finance Minister Nirmala Sitharaman after 53rd GST Council Meeting ---------------------------------------------------     By   GST Info Tamil     YouTube link for more tax update     https://www.youtube.com/gstinfotamil?sub_confirmation=1   WhatsApp update group              https://chat.whatsapp.com/ChcVTsYGAns9fvv16qcd8I                                                                                                          
Post a Comment
Read more