The amount donated to specific institutions is eligible for donation u/s 80G of the Income Tax Act. The amount eligible for donation is not the same. There are a few items, which qualify for 100% deduction, and there is some which just qualifies for 50% alone. But these items are not subject to any limit. But there are a few items that qualify 100% or 50% subject to a limit. One often doesn’t know how much he is eligible to claim as deduction. Hence, this article is aimed at giving a clear idea of donations and its tax treatment.

Donations, which are eligible for 100% deduction

National Defence Fund set up by the Central Govt
P.M’s National Relief Fund, P.M’s Armenia Earthquake Relief Fund
Africa (Public Contributions India) Fund
National Foundation for Communal Harmony
University/Educational Institution of National Eminence
Maharashtra C.M’s Earthquake Relief Fund
Gujarat earthquake relief fund set up by the State Govt of Gujarat
National or state blood transfusion council
Zila Saksharta Samiti of any district
State Govt fund to provide medical relief to poor
Army Central Welfare Fund or Indian Naval Benevolent Fund or Air Force Central Welfare fund
Andhra Pradesh C.M’s Cyclone Relief Fund,1996.
National Illness Assistance Fund
C.M Relief Fund or Lieutant Governor’s Relief Fund
Technology development and application fund, National Sports or Cultural Fund set up by the Central Govt.
National trust for Welfare of persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.

Following items qualify for 50% deduction without any limit

Jawaharlal Nehru Memorial Fund
P.M’s drought relief fund
National Children’s fund
Indira Gandhi Memorial Trust
Rajiv Gandhi Foundation.

The following items are eligible for 100% deduction subjected to a limit of 10% of the adjusted gross total income (AGTI),
i.e, the total amount of deduction in respect of the followings items cannot exceed the gross total income (excluding long-term capital gains and other income which are taxable are special rate of tax) after allowing deductions under Chapter VIA, except donations.

Donations to Govt or any local authority or approved institution for promoting family planning
Contribution by a company to Indian Olympic Association or other notified association.

The following items are eligible only for 50% deduction, subjected to the limit of 10% of Adjusted Gross Total Income.

Contribution to Govt or local authority or any approved fund or institution for charitable purposes
Any authority set up for providing housing accommodation or town planning
Any specified corporation for promoting interest of SC/ST/BC.
Renovation of notified worship places.

It is important to note that donations made by way of cash are only eligible for deduction and not by way of kind. If tax saving is the core attitude of making the donation, make sure that the institution or fund to which the donation is made is an approved one. Try to avail those donations, which qualifies without any limit to avail maximum tax benefits.