The qualifying amount under this category will be lower of the following two amounts:
a) The amount of donation
b) 10 per cent of the gross total income as reduced by all other deductions under Chapter VI-A of the Income Tax Act such as 80C (PPF, LIC etc.), 80D (mediclaim), 80CCC (pension schemes etc.).
The government periodically releases a list of approved charitable institutions and funds that are eligible to receive donations that qualify for deduction. The list includes trusts, societies and corporate bodies incorporated under Section 25 of the Companies Act 1956 as non-profit companies.
These types of Donations, ie., Donations to Trusts which have been approved by the Income Tax Dept., falls under the deduction @ 50% WITH QUALIFYING LIMITS u/s 80G.... Wherein lower of the followings will be allowed to the assessee as deduction (AND WILL NOT BE ALLOWED THE ACTUAL AMOUNT OF CONTRIBUTION AS DEDUCTION) : 1. 50% of the contribution ; OR 2. 50% of the amount of 10% of Adjusted GTI. . . Adjusted GTI = GTI (Gross Total Income) - All Other Deductions under Chapter VI-A except u/s 80G...