Section 80G provides a tax deduction for donations to certain funds and charitable institutions. Deduction under section 80G is available to all assessees who make an eligible donation. Donations made in cash or cheque are only eligible for deductions i.e., donations made in kind like in the form of food, clothing etc are not eligible. Donation may be paid either out of taxable or exempted income Deduction Limit The extent of deduction is either 50% or 100% of the contribution, depending on the charitable institution donated to. For certain funds, the aggregate deduction is limited to 10% of the “Adjusted Gross Total Income”. So, in such cases, if such donation amount is more than 10 % of your Adjusted Gross Total Income, the excess will have to be ignored. Here, Adjusted Gross Total Income is the gross total income minus long-term capital gain, short term capital gain taxable @ 10% u/s 111A and all deductions u/s 80CCC to 80U except any deduction under this section. Approved charitable institutions and funds that qualify for a deduction Donations with 100% deduction without any limit 1. Prime Minister’s National Relief Fund 2. National Defence Fund set up by the Central Government 3. Prime Minister’s Armenia Earthquake Relief Fund 4. Africa (Public Contributions – India) Fund 5. National Foundation for Communal Harmony 6. An Approved university/educational institution of national eminence 7. Chief Minister’s Earthquake Relief Fund, Maharashtra 8. Zila Saksharta Samiti 9. The National Blood Transfusion Council or a State Council for Blood Transfusion 10. Central Welfare Fund of the Army and Air Force and the Indian Naval Benevolent Fund 11. Andhra Pradesh Chief Minister’s Cyclone Relief Fund 12. National Illness Assistance Fund 13. Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund 14. National Sports Fund or National Cultural Fund or Fund for Technology Development and Application. 15. Fund set up by a State Government for the medical relief to the poor. Donations with 50% deduction without any limit 1. Jawaharlal Nehru Memorial Fund 2. Prime Minister’s Drought Relief Fund 3. National Children’s Fund 4. Indira Gandhi Memorial Trust 5. Rajiv Gandhi Foundation Donations with 100% deduction subject to 10% of adjusted gross total income 1. Donations to the Government or any approved local authority, institution or association to be utilised for the purpose of promoting family planning. 2. Donation by a company to the Indian Olympic Association or to any other association or institution notified for the development of infrastructure for sports and games in India or the sponsorship of sports and games in India. Donations with 50% deduction subject to 10% of adjusted gross total income 1. Donation to the Government or any local authority to be utilised for any charitable purposes other than the purpose of promoting family planning. 2. Donation to any notified temple, mosque, gurdwara, church or other places (for renovation or repair). Proof of Payment Proper proof of payment must be submitted to claim deduction. A receipt issued by the donee-institute should be submitted to get the benefit of deduction.