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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 ..... 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[****] 28[(iiie) the National Foundation for Communal Harmony; or] 29[(iiif) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or] 30[(iiig) the Maharashtra Chief Minister's Rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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) 110[the National Sports Development Fund 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 with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or] 88[(iiihk) the Swachh Bharat Kosh, set up by the Central Government, other than the sum spent by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding 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-section (1)]. (5) This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :- 51[(i) where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 52[* * *] 53[54[***]] 55[or clause (23AA)] 56[or clause (23C)] of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 to clause (15) of section 2, be deemed to have been,- (a) established for charitable purposes for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009; and (b) approved under the said clause (vi) for the previous year beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2009.] 97[****] 99[(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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asonable opportunity of being heard;] 108[(iii) where the application is made under sub-clause (A) of clause (iv) of the said proviso or the application is made under clause (iv) of the said proviso as it stood immediately before its amendment vide the Finance Act, 2023, pass an order in writing granting it approval provisionally for a period of three years from the assessment year from which the approval is sought;] and send a copy of such order to the institution or fund: 115[Provided also that the order under clause (i) and clause (iii) of the second proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of three months and one month, as the case may be, calculated from the end of the month in which the application was received:] 116[Provided also that the order under sub-clause (b) of clause (ii) of the second proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of six months from the end of the quarter 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which this sub-section has come into force, shall be deemed to be applications made under clause (iv) of the first proviso to sub-section (5) on that date.] (6) 79[* * *] Explanation 1.-An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5). 73[Explanation 2.-For the removal of doubts, it is hereby declared that a deduction to which the assessee is entitled in respect of any donation made to an institution or fund to which sub-section (5) applies shall not be denied merely on either or both of the following grounds, namely :- 74[(i) that, subsequent to the donation, any part of the income of the institution or fund has become chargeable to tax due to non- compliance with any of the provisions of section 11, 75[section 12 or section 12A]; (ii) that, under clause (c) of sub-section (1) of section 13, the exemption under section 11 76[or section 12] is denied to the institution or fund in relation to any income arising to it from any i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Inserted by the Finance Act, 1993, w.e.f. 1-4-1993. 9. Inserted by the Finance Act, 1993, w.e.f. 1-4-1994. 10. Inserted by the Finance Act, 1994, w.e.f. 1-4-1994. 11. Inserted by the Taxation Laws (Amendment) Act, 2001, w.r.e.f. 3-2-2001. 12. Inserted by the Finance Act, 1995, w.e.f. 1-4-1996. 13. Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997. 14. Inserted by the Income-tax (Amendment) Act, 1996, w.e.f. 14-11-1996. 15. Inserted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-4-1997. 16. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998. 17. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. 18. Inserted by the Finance Act, 1999, w.e.f. 1-4-2000. 19. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 20. Inserted by the Finance Act, 2000, w.e.f. 1-4-2001. 21. Inserted by the Taxation Laws (Amendment) Act, 2001, w.r.e.f. 3-2-2001. 22. Inserted by the Income-tax (Amendment) Act, 1976, w.r.e.f. 9-9-1975. 23. Inserted by the Income-tax (Amendment) Act, 1989, w.e.f. 24-1-1989. 24. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991. 25. Insertedbythe Finance Act, 1982, w.e.f. 1-4-1983. 26. Inserted by the Finance Act, 1985, w.e.f. 1-4-19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. Substituted for "clause (b)" by the Finance Act, 2000, w.e.f. 1-4-2001. 51. Restored to its original provision by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. 52. Words "or clause (22) or clause (22A)" omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. Earlier "or clause (22A)" was inserted by the Finance Act, 1970, w.e.f. 1-4-1970. 53. Inserted by the Finance Act, 1973, w.e.f. 1-4-1974. 54. Words "or clause (23)" omitted by the Finance Act, 2002, w.e.f. 1-4-2003. 55. Inserted by the Finance Act, 1987, w.e.f. 1-4-1988. 56. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 57. Inserted by the Finance Act, 1983, w.e.f. 1-4-1984. 58. Word "and" omitted by the Finance Act, 1994, w.e.f. 1-4-1994. 59. Inserted by the Finance Act, 1973, w.e.f. 1-4-1974. Restored to its original expression by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. 60. Words "or is an insti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and restored to its original provision by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under : "Explanation 4.-For the purposes of this section, an association approved by the Central Government for the purposes of clause (23) of section 10 shall also be deemed to be an institution, and every association or institution approved by the Central Government for the purposes of the said clause shall be deemed to be an institution established in India for a charitable purpose." 78. Inserted by the Finance Act, 1976, w.e.f. 1-4-1976. 79. Omitted by the Finance Act, 1968, w.e.f. 1-4-1969. 80. Substituted vide Finance (No.2) Act, 2009, w.e.f. 1-4-2009, before it was read as, "made in this behalf" 81. Omitted vide Finance (No.2) Act, 2009, w.e.f. 1-10-2009, before it was read as, "Provided that any approval shall have effect for such assessment year or years, not exceeding 63[five] assessment years, as may be specified in the approval." 82. Inserted vide Finance (No.2) Act, 2009, w.e.f. 1-4-2009 83. Inserted vide Finance Act, 2012, w.e.f. 01-04-2013. 84. Inserted vide Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of donation, as may be prescribed: Provided that the institution or fund referred to in clause (vi) shall make an application in the prescribed form and manner to the Principal Commissioner or Commissioner, for grant of approval,-- (i) where the institution or fund is approved under clause (vi) [as it stood immediately before its amendment by the Finance Act, 2020], within three months from the date on which this proviso has come into force; (ii) where the institution or fund is approved and the period of such approval is due to expire, at least six months prior to expiry of the said period; (iii) where the institution or fund has been provisionally approved, at least six months prior to expiry of the period of the provisional approval or within six months of commencement of its activities, whichever is earlier; (iv) in any other case, at least one month prior to commencement of the previous year relevant to the assessment year from which the said approval is sought: Provided further that the Principal Commissioner or Commissioner, on receipt of an application made under the first proviso, shall,- (i) where the application is made under clause (i) of the said proviso, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 100. Omitted 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 "94[(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 proviso to sub-section (5) on that date.]" 101. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 102. Omitted 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 "93[Explanation 2A.- For the removal of doubts, it is hereby declared that claim of the assessee for a deduction in respect of any donation made to an institution or fund to which the provisions of sub-section (5) applies, in the return of income for any assessment year filed by him, shall be allowed on the basis of information relating to said dona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, "in any other case," 113. Omitted vide Section 26 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, "and where no income or part thereof of the said institution or fund has been excluded from the total income on account of applicability of sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 or section 11 or section 12 for any previous year ending on or before the date of such application," 114. Substituted vide Section 26 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-10-2024 before it was read as, "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 opportunity of being heard;]" 115. Substituted vide Section 26 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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