Deduction of contribution or donations to certain funds or non-profit organisations.
79. (1) A person shall be allowed a deduction of—
(a) one hundred and seventy-five per cent. of the amount of money paid by him in the financial year as contribution or donation to any person specified in Part I of the Sixteenth Schedule;
(b) one hundred and twenty-five per cent. of the amount of money paid by him in the financial year as contribution or donation to any person specified in Part II of the Sixteenth Schedule;
(c) one hundred per cent. of the amount of money paid by him in the financial year as donation to any person specified in Part III of the Sixteenth Schedule;
(d) 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 IV of the Sixteenth Schedule.
(2) The aggregate of the amount of money referred to in clause (d) of sub-section (1) shall be limited to ten per cent. of the gross total income from ordinary sources, if the aggregate exceeds ten per cent. of the gross total income from ordinary sources.
(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 benefits, any particular caste, not being the Scheduled Castes or the Scheduled Tribes.
(4) The donation to any person specified in Part IV 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.
