Maharashtra Chief Minister's Earthquake Relief Fund
[B]Some donations that are eligible for 50 per cent deduction without any limit include:
Jawaharlal Nehru Memorial Fund
Prime Minister's Drought Relief Fund
Rajiv Gandhi Foundation
[C] Some donations that are eligible for 100 per cent deduction subject to a qualifying limit include:
Donation to government or any approved local authority to be utilised for promoting family planning
Any sum paid by the assessee, being a company to the Indian Olympic Association
[D] Some donations made that are eligible for 50 per cent deduction subject to a qualifying limit include:
Donation to government or any approved local authority to be utilised for any charitable purpose other than promoting family planning
Donation made to any central government notified place of worship for renovation or repair of such place
For applying the qualifying limit, all aggregate donations made under [C] and [D] shall be aggregated and the aggregate amount shall be limited to 10 per cent of adjusted gross total income (AGTI).
In short, be vigilant about the notification status of the recipient receiving the donation. Also, be very particular about the receipt that shouldstate that the said donation is eligible for deduction under section 80G. Finally, while donations are traditionally made from the heart, using you head also goes a long way in reducing your tax burden.
The writer is vice president, Parag Parikh Financial Advisory Services
ADJUSTED GROSS TOTAL INCOME IS COMPUTED AS: GROSS TOTAL INCOME (GTI)
Less: Long-term capital gains, if any, which have been included in the GTI
Less: All deductions permissible under section 80C to 80U (without including Section 80G)
Less: Such income on which income tax is not payable
Less: Certain incomes referred to under section 115 pertaining to NRIs.
