Whether donation made in kind available for deduction under section 80G?

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Under section 80G of Income Tax Act 1961 deduction is available

Whether donation made in kind available for deduction under section 80G?

Under section 80G of Income Tax Act 1961 deduction is available to any person who made donation as specified in section 80G.

Donation can be made via cheque, draft or cash but deduction is not allowed for donations made in cash exceeding Rs 10,000.

Explanation 5 to section 80G of Income Tax Act 1961

For the removal of doubts, it is hereby declared that no deduction shall be allowed under this section in respect of any donation unless such donation is of a sum of money.

From explanation 5 to section 80G, it is clear that deduction under section 80G is available only if payment is made by way of sum of money. Sum of money does not include donation in kind. Thus it is concluded that donation in kind is not eligible for deduction under section 80G of Income Tax Act 1961.

Donation specified in section 80G without qualifying limit

Donations Eligible for 100% Deduction

  • National Defence Fund set up by the Central Government
  • Prime Minister’s National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National eminence
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a State Government for the medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or to any State Blood Transfusion Council
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities
  • National Sports Fund
  • National Cultural Fund
  • Fund for Technology Development and Application
  • National Children’s Fund
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
  • the Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
  • The Maharashtra Chief Minister’s Relief Fund during October 1, 1993 and October 6, 1993
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat
  • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of earthquake in Gujarat (contribution made during January 26, 2001 and September 30, 2001) or
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions – India) Fund
  • Swachh Bharat Kosh (applicable from FY 2014-15)
  • Clean Ganga Fund (applicable from FY 2014-15)
  • National Fund for Control of Drug Abuse (applicable from FY 2015-16)

Donations Eligible for 50% Deduction

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • Indira Gandhi Memorial Trust
  • Rajiv Gandhi Foundation

Donations to the following are eligible for 100% deduction subject to 10% of adjusted gross total income:

  • Government or any approved local authority, institution or association to be utilised for the purpose of promoting family planning
  • Donation by a Company to the Indian Olympic Association or to any other notified association or institution established in India for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India.

 

Donations to the following are eligible for 50% deduction subject to 10% of adjusted gross total income:

  • Any other fund or any institution which satisfies conditions mentioned in Section 80G(5)
  • Government or any local authority to be utilised for any charitable purpose other than the purpose of promoting family planning
  • Any authority constituted in India 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, villages or both
  • Any corporation referred in Section 10(26BB) for promoting interest of minority community
  • For repairs or renovation of any notified temple, mosque, gurudwara, church or other place.

 

Adjusted total income: Adjusted gross total income is the gross total income (sum of income under all heads) less the following:

  • Amount deductible under Sections 80CCC to 80U (but not Section 80G)
  • Exempt income
  • Long-term capital gains
  • Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D, relating to non-residents and foreign companies

 


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