Deduction in respect of donations to certain funds, charitable institutions, etc.
Eligibility:
An assessee pays any sum as donation to eligible funds or institutions, he is entitled to claim deduction. Subject to certain limitations from the gross total income.
Quantum of deduction:
Qualifying limit:
Eligible deduction under category 3 and 4 should be aggregated and limited to 10% of adjusted gross total income. This would be the maximum permissible deduction.
| Step 1: | Compute adjusted total income |
| Step 2: | Calculate 10% of adjusted total income |
| Step 3: | Calculate the actual deduction of Category 3 and category 4 |
| Step 4: | Lower of Step 2 or 3 is the maximum permissible deduction |
| Step 5: | Amount arrived at step 5, adjusted against category 3 and thereafter 50% of the balance amount |
*Adjusted total income
| Gross total Income | xxx |
| less: Deduction under chapter VIA except 80G | (xxx) |
| less: Short term capital gains u/s 111A | (xxx) |
| less: Long term capital gains u/s 112 & 112A | (xxx) |
| less: Any income on which income-tax is not payable | (xxx) |
| less: Income referred to in sec 115A(1)(a),115AB,115AC, 115AD and 115D | (xxx) |
| Adjusted Total Income | xxx |
Details of the institutions and funds to which donations can be made for the purpose of claiming deduction under sec 80G:
How to claim the deduction?
To be able to claim this deduction the following details have to be submitted in your Income Tax Return
- Name of the Donee
- PAN of the Donee
- Address of the Donee
- Amount of Contribution.