[Section 80G] Donation to Certain funds
Applicable to all assessee
Following conditions must be fulfilled:
(a) Assessee must donate to specified funds or organizations. Donation in kind shall not qualify for deduction.
(b) Donation in excess of Rs. 2,000, shall be made by any mode other than cash. Cash donation upto Rs. 2,000 shall qualify for deduction.
(c) Proof of donation, in original shall be attached with return of income.
Quantum of Deduction:
Particular Amount
100%/50% of donation to Category A organization or fund XXX
Add: 100%/50% of donation to Category B organization/Fund XXX
(Subject to limit*)
Deduction under section 80G XXX
Limit* = 10% of Adjusted Gross Total Income**
Adjusted Gross Total Income**
Gross Total Income XXX
Less: Long-term Capital Gain XXX
Less: Short Term Capital Gain under section 111A XXX
Less: Deduction under section 80C to 80U (except 80G) XXX
Less: Income referred under section 115A, 115AB, 115AC etc. XXX
Adjusted Gross Total Income XXX
Note: While calculating Adjusted Gross Total Income, a casual income like winning from lotteries etc. shall be included.
Following are the donations eligible for deduction:
[Section 80GG] Deduction for House Rent paid
Applicable to an Individual
Following conditions need to be fulfilled:
(a) Assessee is not receiving House Rent Allowances,
(b) He/ His spouse/ minor child or HUF of which he is a member, should not own any residential house,
(c) Assessee should not treat any residential house as self occupied property,
(d) A declaration in form 10BA should be filed for expenditure incurred by him for payment of rent,
(e) Accommodation should be occupied by assessee for purpose of his own residence.
Minimum of the following shall be allowed as deduction:
(1) Rs. 5,000 per month,
(2) 25% of Adjusted Gross Total Income,
(3) Rent paid- 10% of Adjusted Gross Total Income**.
**Adjusted Gross Total Income, shall be calculated in same manner as calculated above.
Check the image below for Illustration:
[Section 80GGA] Donation for scientific research
Applicable to, an assessee who is not having any income under head Profit and Gain from Business or Profession.
Following donations shall qualify for deduction:
(a) Any sum paid by assessee in previous year to a research association, university, college or institution which has the object of scientific research. Such association, university, college must be approved under section 35(1)(ii).
(b) Any sum paid to public sector company or local authority or institution approved by National Committee for carrying out any eligible project.
(c) Sum paid to rural development fund set up and notified under section 35CCA.
(d) Sum paid to National Urban Poverty Eradication Fund (NUPEF).
(e) Any sum paid to research association, university, college or other institution, which has object of research in social science or statistical research.
Mode of Payment:
Payment in excess of Rs. 2,000 for above purpose shall be made by any mode other than cash.
Quantum of deduction:
Amount actually paid is fully deductible.
[Section 80GGB] Contribution to political parties
Applicable to, an Indian company,
Condition need to be fulfilled:
Assessee has contributed any sum, by any mode other than cash, in previous year, to any political party or an electoral trust.
Quantum of deduction:
100% of such contribution made in previous year.
[Section 80GGC] Contribution given by any person to political parties
Applicable to, all assessee except local authority and every artificial judicial person wholly or partly funded by government.
Condition need to be fulfilled:
Contributed any sum, by any mode other than cash, in previous year, to any political party or electoral trust.
Quantum of deduction:
100% of such contribution made in previous year.
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