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Tax rebate on donations to ngo

Shoaib (Manager) (25 Points)

06 July 2016

Dear Sir / Madam,

I made a donation of some amount to a Delhi based NGO via check. I got a receipt in return, which I thought of using while filling itr for last financial year.

Few days back (Jun 2016) I received a call from NGO that they failed to encash the check last year and hence would need a new check as the other one has expired.

Please help me understand that if I issue a new check this year, will I be able to claim the same amount for previous financial year? If not then what can be a work around?

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3 Replies

Pattabhi Ramarao Mothadugu (Working) (44 Points)
Replied 07 July 2016

You can not claim in the previous financial year but you can claim it in the current financial year(Year of donation).

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Shoaib (Manager) (25 Points)
Replied 07 July 2016

Thanks for the reply. But actual donation was made last year. The NGO forgot to encash the check last year. Why should I bear tax due to their fault? :(

Soumyajit Maity (Consultant at Big 5 CA Firm) (35 Points)
Replied 08 July 2016

Deduction U/s 80G can be claimed in a F.Y. subject to the following:

1. Deduction allowable on cash basis, in other words if it is paid in F.Y. 2015-16 then you can claim the same on the same F.Y. only.

2. Deduction is allowable @ 50% of the amount donated. if donation amount id 10000 then deduction can be claimed Rs. 5000.

3. The limit of allowable Deduction is restricted to 10% of Gross total income (ie. called Gross qualifying limit).

for Example if GTI is Rs. 500000, then Gross qualifying limit will be 10% of 500000 = 50000, in that case if you invest Rs. 50000 or more the the maximum deduction in your case will be Rs. 25000.

4. the most important thing is the organization you are donation must have 80G registration.