TaxTMI 
TaxTMI 
Deduction in respect of donations to certain funds, charitable institutions etc. - (New) Section 133 / (old) Section 80G
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....ommunal Harmony; or • (vii) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or • (viii) any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat; or • (ix) any Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for improving primary education in villages and towns having a population up to one lakh according to the last census of which figures are published before the first day of the relevant tax year, in such district and for literacy and post-literacy activities; or • (x) the National Blood Transfusion Council or 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; or • (xi) any fund set up by a State Government to provide medical relief to the poor; or • (xii) the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund ....
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....er association or institution established in India, as the Central Government may, having regard to the guidelines issued in this behalf, by notification, specify for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India, by an assessee being a company; Donations Eligible for 50% Deduction • (i) the Prime Minister's Drought Relief Fund; • (ii) any fund or any institution to which this section applies, if:- • (A) it is established in India for a charitable purpose; and • (B) it is a registered non-profit organisation or an institution or fund mentioned in Schedule VII (Table: Sl. No. 1) and approved under section 354; • (iii) the Government or any local authority, to be utilised for any charitable purpose other than the purpose of promoting family planning; • (iv) 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; • (v)....
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....overnment or any State Government for promoting the interests of the members of such minority community, as may be notified by the Central Government; • (vi) any entity, for the renovation or repair of any temple, mosque, gurudwara, church or other place which is notified by the Central Government to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States. If aggregate exceeds 10% of Adjusted Gross Total Income then excess is ignored. Prohibition of Double Deduction [ Section 133(3) ] Where deduction under this section is claimed and allowed for any tax year in respect of any sum specified in section 133(1), 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 tax year. Deduction Restricted to Monetary Donations [ Section 133(4) & (5) ] The deduction under this section shall be allowed only for donation made as a sum of money. Any deduction for a donation over Rs. 2000 shall be allowed only if the payment is made by a mode other than cash. Verification of Donation Claims throug....
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....dation, 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. 01^st 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% (iiiga) any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat; or 100% (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. 100% (iiiha) the National Blood Transfusion Council or to any State Blood Transfusion Council which has its sole object the control, supervis....
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....titution 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 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,....
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....f donation in cash of an amount exceeding Rs. 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 donations need not necessarily come out of income chargeable t....
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....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) 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 ....
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...., 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: • 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; or substituted vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] • (iv) in any other case, [Omitted vide Finance (No. 2) ....
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....in such form and manner as may be prescribed, before expiry of the period of three months and one month, as the case may be, calculated from the end of the month in which the application was received. [ Third proviso of Section 80G(5) ] [ Substituted vide Finance (No.2) Act, 2024 ] • Upto 30.09.2024 the order under clause (i), sub-clause (b) of clause (ii) and clause (iii) of the second 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: [ 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 section 80G(5) ] Provided also 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, ....