Deduction in respect of donations to certain funds, charitable institutions, etc
Deduction in respect of donations to certain funds, charitable institutions, etc.
80G. 1[(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,—
(i) in a case where the aggregate of the sums specified in sub-section (2) includes any sum specified in sub-clause (vii) of clause (a) thereof, an amount equal to the whole of such sum plus fifty per cent of the balance of such aggregate ; and
(ii) in any other case, an amount equal to fifty per cent of the aggregate of they sums specified in sub-section (2).]
(2) The sums referred to in sub-section (1) shall be the following, namely :—
(a) any sums paid by the assessee in the previous year as donations to—
(i) the National Defence Fund set up by the Central Government; or
(ii) the Jawaharlal Nehru Memorial Fund referred to in the Deed of Declaration of Trust adopted by the National Committee at its meeting held on the 17th day of August, 1964 ; or
(iii) the Prime Minister's Drought Relief Fund ; or
2[(iiia) the Prime Minister's National Relief Fund ; or]
(iv) any other fund or any institution to which this section applies ; or
(v) the Government or any local authority, to be utilised 3[for any charitable purpose other than the purpose of promoting family planning ; or ]
4[(vi) any authority referred to in clause (20 A) of section 10 ; or
(vii) the Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning ;]
(b) any sums paid by the assessee in the previous year as donations for the renovation or repair of any such temple, mosque, gurdwara, church or other place as is notified* by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States.
(3) No deduction shall be allowed under sub-section (1) if the aggregate of the sums referred to in sub-section (2) is less than two hundred and fifty rupees.
(4) The deduction under sub-section (1) shall not be allowed in respect of such part of the aggregate of the sums referred to in 1[sub-clauses (iv), (v), (vi) and (vii)] of clause (a) and in clause (b) of sub-section (2) as exceeds ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), or two hundred thousand rupees, whichever is less :
Provided that where such aggregate includes any donations referred to in clause (b) of sub-section (2) and such aggregate exceeds the limit of two hundred thousand rupees specified in this sub-section, then such limit shall be raised to cover that portion of the donations aforesaid which is equal to the difference between such aggregate and the said limit, so, however, that the limit so raised shall not exceed ten per cent of the assessee's gross total income as reduced as aforesaid, or five hundred thousand rupees, whichever is less.
(5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :—
(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (22) or clause (22A) 2[or clause 23)] 3[or clause (23C)] of section 10 ;
(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) the institution or fund maintains regular accounts of its receipts and expenditure ; and
(v) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of" 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law 2[or is an institution approved by the Central Government for the purposes of clause (23) of section 10,] or is an institution financed wholly or in part by the Government or a local authority.
Explanation 1 : An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5).
Explanation 2 : For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which subsection (5) applies shall not be denied merely on either or both of the following grounds, namely :—
(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non-compliance with any of the provisions of section 11, 1[section 12 or section 12A] ;
(ii) that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 1[or section 12] is denied to the institution or fund in relation to any income arising to it from any investment referred to in clause (h) of subsection (2) of section 13 where the aggregate of the funds invested by it in a concern referred to in the said clause (h) does not exceed five per cent of the capital of that concern.
Explanation 3 : In this section, "charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature.
2[Explanation 4 : For the purposes of this section, an association approved by the Central Government for the purposes of clause (23) of section 10 shall also be deemed to be an institution, and every association or institution approved by the Central Government for the purposes of the said clause shall be deemed to be an institution established in India for a charitable purpose.]
3[Explanation 5 : 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.]
1. Substituted by the Finance Act, 1976, w.e.f. 1-4-1977.
2. Inserted by the Income-tax (Amendment) Act, 1976, w.e.f. 9-9-1975.
3. Substituted for the words "for any charitable purpose" by the Finance Act, 1976, w.e.f. 1-4-1977.
4. Inserted by the Finance Act, 1976, w.e.f. 1-4-1977.
1. Substituted by the Finance Act, 1976, for the expression "sub-clauses (iv) and (v)", w.e.f. 1-4-1977.
2. Inserted by the Finance Act, 1973, w.e.f. 1-4-1974.
3. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
* See "Taxmann's Direct Taxes Circulars", Vol. 1, 1977 edition.
1. Inserted by the Finance Act, 1972, W.e.f, 1-4-1973.
2. Inserted by the Finance Act, 1973, w.e.f. 1-4-1974.
3. Inserted by the Finance Act, 1976, w.e.f. 1-4-1976.
[As Amended by the Finance Act, 1976]