Amendment of section 80G
14. In section 80G of the Income-tax Act, in sub-section (1), in clause (i), after the words, brackets, figures and letters “or in sub-clause (iiiab)”, the words, brackets, figures and letter “or in sub-clause (iiib)” shall be inserted with effect from the 1st day of April, 2014.
Notes on Clauses:
Clause 14 of the Bill seeks to amend section 80G of the Income-tax Act relating to deductions in respect of donations to certain funds, charitable institutions, etc.
Under the existing provisions, an assessee is allowed a deduction from his total income in respect of donations made by him to certain funds and institutions. The deduction is allowed at the rate of fifty per cent. of the amount of donations made except in the case of donations made to certain funds and institutions specified in clause (i) of sub-section (1) of section 80G, where deduction is allowed at the rate of one hundred per cent. In the case of donations made to the National Children’s Fund, deduction is allowed at the rate of fifty per cent. of the amount so donated.
It is proposed to allow hundred per cent. deduction in respect of any sum paid to the National Children’s Fund in computing the total income of an assessee.
This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to assessment year 2014-15 and subsequent assessment years.
