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I wanted to know if deductions under Section 80G are over and above what we do under 80C (i.e. 1 lakh).

We always talk about 80C, but donating to welfare organizations for old, needy, children, etc. is something worth considering.

Thank you all for your help.

Regards,
Ram.

9 Answers

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1 Manish Chauhan March 21, 2012 at 7:11 pm

Yes , Obviously .. because the sections are different , they can be claimed seperately :) .

Manish

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2 ashal jauhari March 21, 2012 at 7:36 pm

Dear Ram, not only 80G, but 80D (health insurance prem.), 80CCF (Infra bonds), 80E (education loan’s interest) all are these benefits are above than 80C limit of 1L Rs. & one may use any one or some or all (as the case may be) of such sections for his/her benefit.

As far as in case of 80G, there is a ceiling of 10% i.e. you can’t donate more than 10% of your total income.

Thanks

Ashal

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3 Ram March 21, 2012 at 7:43 pm

Manish/Ashal…you’re both rockstars at JagoInvestor.

Thank you so much for the prompt replies.

Regards,
Ram

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4 justgrowmymoney March 21, 2012 at 7:46 pm

Ashal – If one contributes more than 10% I thought you can carry this balance over to the following assessment years. Is this correct? There are few cases where people give away a house/land for charity whose value is well over their annual salary. In order for them to benefit the carry over clause was made available. Is this right?

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5 ashal jauhari March 21, 2012 at 8:47 pm
6 wealthucreate March 21, 2012 at 11:17 pm

Curious to know, it is must that we should have some printed reciept? Is donation given only through trust entitled for tax exemption?

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7 ashal jauhari March 21, 2012 at 11:26 pm

Dear Wealthucreate, yes the printed receipt is required to claim the 80G benefit & that too for donations made to only recognized trusts or institutions.

Thanks

Ashal

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8 Manish Chauhan March 22, 2012 at 10:15 am

Another important point to note is that in this budget , a small change is done in 80G which says – “Prohibition of cash donations in excess of ten thousand rupees” , so on a high level a cash donation of more than 10,000 will not get deductions , it should be in other
ways like cheque , DD etc. Here are the exact wordings !

Prohibition of cash donations in excess of ten thousand rupees Section 80G of the Income-tax Act provides for a deduction in respect of donations to certain funds, charitable institutions, etc. subject to specified conditions. The deduction is allowed in respect of any donation being a sum of money. Similarly, section 80GGA of the Income-tax Act provides for a deduction in respect of certain donations for scientific research or rural development made to research associations, universities, colleges or other associations/institutions, subject to specified conditions.

Currently, there is no provision in either of the aforesaid sections specifying the mode of payment of money. Therefore, it is proposed to amend sections 80G and 80GGA so as specify therein that any payment exceeding a sum of ten thousand rupees shall only be allowed as a deduction if such sum is paid by any mode other than cash. These amendments will take effect from 1st April, 2013 and will, accordingly, apply in relation to assessment year 2013-14 and subsequent assessment years.
[Clauses 27, 28]

Source : http://indiabudget.nic.in/ub2012-13/mem/mem1.pdf (Last page)

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9 bharat shah March 22, 2012 at 2:09 pm

and i think,the a/m eligible for deduction is different for different organization depending upon the condition of approval by the govt. as 50, 100 or 125% AS THE CASE MAY BE.

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