Deduction in respect of donations to certain funds, non-profit organisations, etc.
72. (1) A person shall be allowed a deduction of
(a) one and one-fourth times of the amount of money actually paid by him in the financial year as donation to any person specified in Part-A of the Sixteenth Schedule;
(b) hundred per cent. of the amount of money actually paid by him in the financial year as donation to any person specified in Part-B of the Sixteenth Schedule;
(c) fifty per cent of the aggregate of the amount of money actually paid by him in the financial year as donation to any person specified in Part-C of the Sixteenth Schedule.
(2) The aggregate of the amount of money referred to in clause (c) of sub-section (1) shall be limited to ten per cent of the gross total income, if the aggregate exceeds ten per cent of the gross total income.
(3) The deduction under this section shall not be allowed in respect of any amount of money paid to any person referred to in sub-section (1) if,-
(a) the amount is laid out or expended during the financial year for any religious activity; or
(b) any activity of the donee is intended for, or actually benefit, any particular caste, not being a Scheduled Caste or Scheduled Tribe.
(4) The donation to any person specified in Part-C of the Sixteenth Schedule shall be eligible for deduction under sub-section (1), if the donee obtains the approval of the prescribed authority in accordance with the procedure and subject to such conditions, as may be prescribed.
(5) The deduction under sub-section (1) shall not be denied to a donor merely on the consideration that, subsequent to the donation, the donee, being a non-profit organisation, has ceased to be so.
