TMI BlogDeduction in respect of donations to certain funds, charitable institutions, etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... ( iiihj ) ] or ] 86 [ sub-clause (iiihk) or sub-clause (iiihl) or ] 87 [sub-clause (iiihm) or] in ] sub-clause ( vii ) of clause ( a ) 20 [ or in clause ( c ) ] 21 [ or in clause ( d ) ] thereof, an amount equal to the whole of the sum or, as the case may be, sums of such nature plus fifty per cent of the balance of such aggregate; and ] ( ii ) in any other case, an amount equal to fifty per cent of the aggregate of the sums specified in sub-section (2). ] (2) The sums referred to in sub-section (1) shall be the following, namely :- ( a ) any sums paid by the assessee in the previous year as donations to- ( i ) the National Defence Fund set up by the Central Government; or 104 [****] ( iii ) the Prime Minister's Drought Relief Fund; or 22 [ ( iiia ) the Prime Minister's National Relief Fund; 95 [ or the Prime Minister s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND) ] or ] 23 [ ( iiiaa ) the Prime Minister's Armenia Earthquake Relief Fund; or ] 24 [ ( iiiab ) the Africa (Public Contributions - India) Fund; or ] 25 [ ( iiib ) the National Children's Fund; or ] 104 [****] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med forces of the Union for the welfare of the past and present members of such forces or their dependants; or ] 34 [ ( iiihd ) the Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996; or ] 35 [ ( iiihe ) the National Illness Assistance Fund; or ] 36 [ ( iiihf ) the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or Union territory, as the case may be : Provided that such Fund is- ( a ) the only Fund of its kind established in the State or the Union territory, as the case may be; ( b ) under the overall control of the Chief Secretary or the Department of Finance of the State or the Union territory, as the case may be; ( c ) administered in such manner as may be specified by the State Government or the Lieutenant Governor, as the case may be; or ] 37 [ ( iiihg ) the National Sports Fund to be set up by the Central Government; or ( iiihh ) the National Cultural Fund set up by the Central Government; or ] 38 [ ( iiihi ) the Fund for Technology Development and Application set up by the Central Government; or ] 39 [ ( iiihj ) the National Trust for Welfare of Persons w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed guidelines, by notification in the Official Gazette, specify in this behalf ] for- ( i ) the development of infrastructure for sports and games; or ( ii ) the sponsorship of sports and games, in India ;] 46 [ ( d ) any sums paid by the assessee, during the period beginning on the 26th day of January, 2001 and ending on the 30th day of September, 2001, to any trust, institution or fund to which this section applies for providing relief to the victims of earthquake in Gujarat. ] (3) 47 [ *** ] 48 [ (4) Where the aggregate of the sums referred to in sub-clauses ( iv ), ( v ), ( vi ) 49 [ ,( via ) ] and ( vii ) of clause ( a ) and in 50 [ clauses ( b ) and ( c ) ] of sub-section (2) exceeds ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, at any time after the commencement of such activities: ] ( v ) the institution or fund is either constituted as a public charitable trust or is registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956 (1 of 1956), or is a University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law, 59 [ 60 [ *** ]] or is an institution financed wholly or in part by the Government or a local authority; 61 [ *** ] 62 [ ( vi ) in relation to donations made after the 31st day of March, 1992, the institution or fund is for the time being 98 [ approved by the Principal Commissioner or Commissioner; ] 81 [ *** . ] ] 82 [ (vii) where any institution or fund had been approved under clause (vi) for the previous year beginning on the 1st day of April, 2007 and ending on the 31st day of March, 2008, such institution or fund shall, for the purposes of this section and notwithstanding anything contained in the proviso t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst proviso, shall,- (i) where the application is made under clause (i) of the said proviso, pass an order in writing granting it approval for a period of five years; (ii) where the application is made under clause (ii) or clause (iii) 106 [ or sub-clause (B) of clause (iv) ] of the said proviso,- (a) call for such documents or information from it or make such inquiries as he thinks necessary in order to satisfy himself about- (A) the genuineness of activities of such institution or fund; and (B) the fulfilment of all the conditions laid down in clauses (i) to (v); (b) after satisfying himself about the genuineness of activities under item (A), and the fulfilment of all the conditions under item (B), of sub-clause (a),- (A) pass an order in writing granting it approval for a period of five years; or 107 [ (B) if he is not so satisfied, pass an order in writing, (I) in a case referred to in clause (ii) or clause (iii) of the first proviso, rejecting such application and cancelling its approval; or (II) in a case referred to in sub-clause (B) of clause (iv) of the first proviso, rejecting such application, after affording it a reasonable opportu ..... 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( vi ) of sub-section (5); ( ii ) it maintains separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat; ( iii ) the donations made to the trust or institution or fund are applied only for providing relief to the earthquake victims of Gujarat on or before the 31st day of March, 68 [ 2004 ]; 69 [ ( iv ) the amount of donation remaining unutilised on the 31st day of March, 70 [ 2004 ] is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, 71 [ 2004 ];] ( v ) it renders accounts of income and expenditure to such authority and in such manner as may be prescribed, on or before the 30th day of June, 72 [ 2004 ].] 83 [ (5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding 90 [ two thousand rupees ] unless such sum is paid by any mode other than cash. ] 101 [ (5E) All applications, pending before the Commissioner on which no order has been passed under clause (vi) of sub-section (5) before the date on which this sub-section has come into force, shall be deemed to be applications made under clause (iv) of the first pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficial Gazette, specify in this behalf, shall be deemed to be an institution established in India for a charitable purpose. ] 78 [ Explanation 5. - For the removal of doubts, it is hereby declared that no deduction shall be allowed under this section in respect of any donation unless such donation is of a sum of money .] 100 [ **** ] **************** Notes :- 1. This section was inserted in place of section 88 which was deleted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. Now section 88 has taken the place of section 80C. 2. Substituted by the Finance Act, 1976, w.e.f. 1-4-1977. Earlier, it was substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 3. Substituted by the Finance Act, 1985, w.e.f. 1-4-1986. 4. Inserted by the Income-tax (Amendment) Act, 1999, w.e.f. 1-4-2000. 5. Restored to its original expression by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, this was substituted by the Direct Tax Laws (Amendment) Act, 1987 with effect from the same date. 6. Inserted by the Income-tax (Amendment) Act, 1989, w.e.f. 24-1-1989. 7. Inserted by the Finance (No. 2) Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4-2002. 40. Inserted by the Finance Act, 1976, w.e.f. 1-4-1977. 41. Sub-clauses (vi) and (vii) inserted by the Finance Act, 1976, w.e.f. 1-4-1977. 42. Substituted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its substitution, sub-clause (vi) read as under : (vi) any authority referred to in clause (20A) of section 10; or 43. Inserted by the Finance Act, 1995, w.e.f. 1-4-1995. 44. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001. 45. Substituted for as notified by the Central Government under clause (23) of section 10 by the Finance Act, 2002, w.e.f. 1-4-2003. 46 . Inserted by the Taxation Laws (Amendment) Act, 2001, w.r.e.f. 3-2-2001. 47. Omitted by the Finance Act, 1994, w.e.f. 1-4-1994 . Prior to its omission, sub-section (3) read as under : (3) No deduction shall be allowed under sub-section (1) if the aggregate of the sums referred to in sub-section (2) is less than two hundred and fifty rupees. 48 . Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its substitution, sub-section (4) was amended by the Taxation Laws (Amendment) Act, 1970, with retrospective effect from 1-4-1968, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of donation remaining unutilised on the 31st day of March, 2002 is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, 2002; 70. Substituted for 2003 by the Finance Act, 2003, w.r.e.f. 3-2-2001. Earlier, 2003 was substituted for 2002 by the Finance Act, 2002, w.r.e.f. 3-2-2001. 71. Substituted for 2003 by the Finance Act, 2003, w.r.e.f. 3-2-2001. Earlier, 2003 was substituted for 2002 by the Finance Act, 2002, w.r.e.f. 3-2-2001. 72. Substituted for 2003 by the Finance Act, 2003, w.r.e.f. 3-2-2001. Earlier, 2003 was substituted for 2002 by the Finance Act, 2002, w.r.e.f. 3-2-2001. 73. Substituted by the Finance Act, 1970, w.e.f. 1-4-1971. 74. Restored to its original position by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, clauses (i) and (ii) were substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. 75. Inserted by the Finance Act, 1972, w.e.f. 1-4-1973. 76. Inserted by the Finance Act, 1972, w.e.f. 1-4-1973. 77. Substituted by the Finance Act, 2002, w.e.f. 1-4-2003. Prior to its substitution, Explanation 4, as inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2020 96. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as 91 [ approved by the Principal Commissioner or Commissioner; ] 97. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as 92 [ (viii) the institution or fund prepares such statement for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed: Provided that the institution or fund may also deliver to the said prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be prescribed; and (ix) the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the institution or fund: Provided also that the order under clause (i), sub-clause (b) of clause (ii) and clause (iii) of the first proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of three months, six months and one month, respectively, calculated from the end of the month in which the application was received: Provided also that the approval granted under the second proviso shall apply to an institution or fund, where the application is made under (a) clause (i) of the first proviso, from the assessment year from which approval was earlier granted to such institution or fund; (b) clause (iii) of the first proviso, from the first of the assessment years for which such institution or fund was provisionally approved; (c) in any other case, from the assessment year immediately following the financial year in which such application is made. ] 98. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered at New Delhi on the 21st day of June, 1991; or ] 105. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-10-2023 before it was read as, ( iv ) the institution or fund maintains regular accounts of its receipts and expenditure; 58 [ * * * ] 106. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-10-2023 107. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-10-2023 before it was read as, (B) if he is not so satisfied, pass an order in writing rejecting such application and also cancelling its approval after affording it a reasonable opportunity of being heard; 108. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-10-2023 before it was read as, (iii) where the application is made under clause (iv) of the said proviso, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the registration is sought, 109. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, first proviso - - statute, statutory provisions legislation, law, enactment, Acts, Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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