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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%

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