SECTION 80 G TAX DEDUCTION FOR DONATION

1. What is 80g?
• Section 80g offers a tax deduction for
donations to certain prescribed funds and
charitable institutions.

2. Benefits of 80g
• Those organizations who donate to NGO
under section 80g, they get deduction of 50%
in their tax.

3. Eligible Assesses for 80g
• This section is applicable to all Ngo, who
make an eligible donation, whether an
individual, HUF, NRI or a company.

4. Applying for 12a Certification
• shall ensure the acceptance of the
organization by Income Tax department.
After getting the 12a certification the Ngo
organization gets the perfect legal entity. The
entire tax of ngo is exempted.

5. Apply for 80g certification
By showing their record of achievements in
social welfare activities and by proving their
service to the public. By getting this 80g
certification, organization are privileged to
provide tax exemption to the donors who
donates their organization.

6. That is when an organization receives donation
from public, individual or from a group it shall
issue 80g tax
exemption to the donor, where donors are entitled
to donate from their 10% of gross total annual
income. In that 10% of their donation, donors
shall receive 10% tax exemption for their
donation. So this type of certification, gives the
power to the organization to encourage their
donation to donate more .

7. What is the validity
period of the registration
under section 12A and
80G of Income Tax Act?
• 12A registration : Lifetime validity
• 80G registration : 1 to 3 years
• validity

8. When you apply for 80g you shall
check yourself for the fitness of 80g
approval under the following factors.
1. If nonprofit Ngo organization is under going
with any business, then they have to maintain
a separate account and should not mix the
donations they receive for social cause.
2. Other than charitable cause the organization
or its byelaw should not represent any other
causes towards spending of such donation
amounts or the assets and incomes of the
nonprofits Ngo organization.

9. 3. The nonprofit Ngo organization shall not be
able to apply for 80 g if it support religion
based, caste and creeds based activity.
4. The nonprofit Ngo organization should have
the qualification of registration which might
have been registered under Societies
registration act 1860 or registered under
section 25 of Companies act 1956.

10. 5. Proper annual returns, accounting, book
keeping should be in manner before applying for
80 g.
6. If you have already received the 80 g certificate,
then proper renewal is must to hold such tax
benefits. Income tax department has the power
to approve or reject such approval upon
disqualification of the nonprofit organization or
dissatisfaction found by the department
towards the nonprofit Ngo organization
activities.

11. Donations with 100% deduction without
any qualifying limit .
1. Prime Minister’s National Relief Fund
2. National Defense Fund
3. Prime Minister’s Armenia Earthquake
Relief Fund
4. The Africa (Public Contribution - India)
Fund

12. 5. The National Foundation for Communal Harmony
6. Approved university or educational institution of
national eminence
7. The Maharashtra Chief Minister’s Earthquake Relief
Fund
8. Donations made to Zila Saksharta Samitis.
9. The National Blood Transfusion Council or a State
Blood Transfusion Council.
10. The Army Central Welfare Fund or the Indian
Naval Benevolent Fund or The Air Force Central
Welfare Fund.

13. Donations with 50% deduction
without any qualifying limit
1. Jawaharlal Nehru Memorial Fund
2. Prime Minister’s Drought Relief Fund
3. National Children’s Fund
4. India Gandhi Memorial Trust
5. The Rajiv Gandhi Foundation

14. Deduction amount u/s. 80g.
Donations paid to specified institutions
qualify for tax deduction under section 80G but
is subject to certain ceiling limits. Based on
limits, we can broadly divide all eligible
donations under section 80G into four
categories:
a) 100% deduction without any qualifying
limit (e.g., Prime Minister’s National
Relief Fund).

15. b) 50% deduction without any qualifying limit
(e.g., India Gandhi Memorial Trust).
c) 100% deduction subject to qualifying limit (e.g.,
an approved institution for promoting family
planning).
d) 50% deduction subject to qualifying limit (e.g.,
an approved institution for charitable purpose
other than promoting family planning).