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Donation to Orphanage

Murugesan (Asst. Manager - Finance) (180 Points)

12 June 2018

Dear Sir/Madam,
What is the IT exemption for the donation paid to the orphanage by an individual

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5 Replies

Rahul Prajapati (Student) (2282 Points)
Replied 12 June 2018

Under Section 80-G of Income Tax Act, you are eligible for income tax deductions only for the amount which has been donated.

Deduction Limit
The tax deduction limit under Section 80G of ITA is either 50% or 100%. It entirely depends on the charitable institution to which the amount is donated.

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 12 June 2018

To claim deduction u/s 80G on donations to Orphanage,Such entities should be notified for this purpose by the income tax department.

Murugesan (Asst. Manager - Finance) (180 Points)
Replied 12 June 2018

thanks for your reply
could you please provide the category of charitable trust comes under 100% tax exemption

Rahul Prajapati (Student) (2282 Points)
Replied 12 June 2018

Charitable organizations with 100% deduction without any qualifying limit:

Prime Minister’s National Relief Fund
National Defence Fund
Prime Minister’s Armenia Earthquake Relief Fund
The Africa (Public Contribution – India) Fund
The National Foundation for Communal Harmony
Approved university or educational institution of national eminence
The Chief Minister’s Earthquake Relief Fund, Maharashtra
Donations made to Zila Saksharta Samitis.
The National Blood Transfusion Council or a State Blood Transfusion Council.
The Army Central Welfare Fund or the Indian Naval Benevolent Fund or The Air Force Central Welfare Fund.
Army Central Welfare Fund, Indian Naval Ben. Fund, Air Force Central Welfare Fund.
National Illness Assistance Fund
Chief Minister’s or Lt. Governor’s Relief Fund
National Sports Fund
National Cultural Fund
Govt. / local authority/ institution/ association towards promoting family planning
Central Govt.’s Fund for Technology Development & Application
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities
Indian Olympic Association/ other such notified association
Andhra Pradesh Chief Minister’s Cyclone Relied Fund

Charitable organizations with 50% deduction without any qualifying limit

Jawaharlal Nehru Memorial Fund
Prime Minister’s Drought Relief Fund
National Children’s Fund
Indira Gandhi Memorial Trust
The Rajiv Gandhi Foundation
Donations to govt./ local authority for charitable purposes (excluding family planning)
Authority/ corporation having income exempt under erstwhile section or u/s 10(26BB)
Donations for repair/ renovation of notified places of worship
World Vision India
UdavumKarangal

For certain donations, the aggregate deduction limits to 10 per cent of the ‘Adjusted Gross Total Income’. Thus, in such cases, even if you are donating funds eligible for deduction, it would be capped at 10 per cent of the Adjusted Gross Total Income – Gross total income minus long-term capital gain along with short term capital gain and all deduction under Section 80CCC to 80U except any deduction in this section.

Donations to the following are subjected to 10% of Adjusted Gross Total Income:

For 100% Deduction