Under Section 80G of the IT Act deductions in donations to certain funds are allowed. The Section allows deductions of upto 50 per cent from the total income of the assessee towards sums donated to educational institutions, hospitals or charitable organisations. However, one is unable to understand why 100 per cent deductions for such donations are not allowed. With the recent proposal to introduce MAT, even this 50 per cent deduction will get diluted. In fact, considering the low literacy rate in the country and inadequate hospitals and other infrastructural facilities available, there is a strong case for allowing weighted deductions of atleast 50 per cent more than the donated amount.
Further, there are many fund rich-organisations overseas which are genuinely concerned about the upliftment of the masses. Many of these trusts which receive donations from abroad face harassment by various authorities. As the receipt of funds by these trusts results in setting up of schools, hospitals etc, these trusts should be allowed to function without any harassment whatsoever.
Time and again, the government has been announcing amnesty schemes, by which either ill-gotten wealth or black money gets legalised or comes back as gifts. If charitable trusts are freely allowed to receive donations from overseas, without being subject to suspicion, it would divert idle overseas funds for useful purposes. This way the money can be utilised to build the future of our country.