TaxTMI 
TaxTMI 
Deduction in respect of donations to certain funds, charitable institutions etc. - Section 80G
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....inister's National Relief Fund; or the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND) or 100% (iiiaa) the Prime Minister's Armenia Earthquake Relief Fund; or 100% (iiiab) the Africa (Public Contributions - India) Fund; or 100% (iiib) the National Children's Fund; or 100% (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 [ omitted by F.A. 2023 w.e.f. A.Y. 01st April 2024 ] 50% (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 [ omitted by F.A. 2023 w.e.f. A.Y. 01st April 2024 ] 50% (iiie) the National Foundation for Communal Harmony; or 100% (iiif) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or 100% (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 100% ....
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....e sum spent by the assessee in pursuance of Corporate Social Responsibility under of section 135(5) of the Companies Act, 2013; or 100% (iiihm) the National Fund for Control of Drug Abuse constituted under section 7A of the Narcotic Drugs and Psychotropic Substances Act, 1985 ; or 100% * 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. [ Section 80G(2)(d) read with section 80G(5C) ] * Section 80G(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 b....
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....4) ] * Mode of Payment: Donation can be given in cash or cheque or draft. However, no deduction shall be allowed in respect of donation in cash of an amount exceeding ₹ 10,000 ( for the AY 2013-14 to 2017-18) or Rs. 2,000/- (From the AY 2018-19 onwards). [ Section 80G(5D) ] * The assessee has to produce the proof of payment before claiming such deduction. Note : Application for Approval and order of Approval to PCIT/CIT [ Amendment by FA 2020, w.e.f. 01.04.2021 ] a) An entity already approved shall be required to apply for approval in Form 10A within 3 months from 01.04.2021, Such approval shall be valid for 5 Years b) Where Insitituton or fund is approved and period of such approval is due to expire, the application for renewal of approval in Form 10AB should be made atleast 6 months prior to expiry of approval. c) An entity making fresh application/First time approval shall make application in Form 10A u/s 80G shall be provisional approved for 3 years without detailed enquires, However, Subsequent approval shall be make before expiry of 6 months of provisional approval in Form 10AB. Other important Points * In order to be eligible for deduction under section 80G ....
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....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) in any other case, where activities of the institution or fund have-- - (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; - (B) commenced and where no income or part thereof of the said institution or fund has been excluded from the total income on account of applicability of sub-clause (iv) or (v) or (vi) or (via) of clause (23C) of section 10 or section 11 or section 12 for any previous year ending on or before the date of such application [ Omitted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ], at any time af....
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....tion 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; or substituted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] * (iv) in any other case, [Omitted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024] at least one month prior to commencement of the previous year relevant to the assessment year from which the said approval is sought: * the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,- * (i) where the application is made under....
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.... 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: [ Third proviso of Section 80G(5) ] * Provided also that the order under sub-clause (b) of clause (ii) of the second proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of six months from the end of the quarter in which the application was received. [ Fourth proviso of Finance (No. 2) Act, 2024 ] * 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. * Section 80G(5B) Notwithstanding anything contained in clause (ii) of section 80G(5) and Explanation 3, an institution or fund which incurs expenditure, du....