Eligibility to Claim Deduction Under Section 80G

Both company and non-company can claim a deduction under Section 80G of the Income Tax Act for donations made to eligible charitable institutions or funds.

The following persons can claim deduction under section 80G –

  • Individuals
  • Companies
  • Firms
  • Hindu Undivided Firm (HUF)
  • Non-Resident Indian (NRI)
  • Any other person

It is important to note that only the donations made to prescribed funds qualify as a deduction. Also, this deduction is not available for those individuals who opt for the new regime.


What type of donations are eligible for the deduction under section 80G?

To claim a deduction under Section 80G, the donation must be in the form of money and not goods or services. The deduction can only be claimed for cash, cheque, or electronic transfer donations.

In addition, it is important to note that donations made in cash exceeding Rs. 2,000 will not be eligible for the deduction under Section 80G. Donors should ensure that they receive a receipt for the donation. The receipt should specify the amount donated, the name and address of the charitable institution or fund, and the registration number of the institution or fund under Section 80G.

Donors should also check the eligibility and maximum limit for deduction for each institution or fund before donating. It is important to note that the deduction limit and eligibility criteria can vary depending on the institution or fund to which the donation has been made.

How to Claim the Deduction Under Section 80G While Filing ITR?

Tax calculation or tax liability is computed on the net taxable income of the taxpayer. The net taxable income is calculated after subtracting all the deductions that a taxpayer is eligible for from his/her gross total income. This means deduction under Section 80G will be deducted from the gross total income. The gross income is the sum of income from all sources of income, such as salary, dividend income, capital gains, interest income, rental income, etc.

Now the question is how much amount of deductions can be claimed under Section 80G deduction. This deduction ranges from 50% to 100% of the amount donated. Donations to certain institutions qualify for a full deduction of either 100% or 50%, without any qualifying limit.

To claim the deductions under Section 80 G, one needs to provide the details of their donations in’ Schedule 80G” in the ITR form. Tables A, B, C, D are included in the schedule. These tables each correspond to a different category of charitable institution.

As per the latest change, a new column has been added under ‘Table D’ of ITR forms where disclosure of the ARN (donation reference number) is required to be entered. This one is for those entities where a 50% deduction is allowed, subject to the qualifying limit.

Along with mentioning the information under ‘Schedule 80G’, it is important to separately mention the total amount of deduction claimed under Section 80G, if the taxpayer is filling the ITR forms 2 and 3.

Claiming deductions under Section 80G of the Income Tax Act can involve certain complexities, but with proper understanding and documentation, it can be done successfully. If you are facing issues while claiming a Section 80G deduction, Tax2Win is here for your help. Tax2win tax experts are experienced professionals who can help individuals and businesses with various aspects of tax filing.

Claim your Section 80G deduction and file ITR today.