TMI BlogDeduction in respect of donations to certain funds, charitable institutions etc. - Section 80GX X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s National Relief Fund; or the Prime Minister s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND) or 100% ( iiiaa ) the Prime Minister's Armenia Earthquake Relief Fund; or 100% ( iiiab ) the Africa (Public Contributions - India) Fund; or 100% ( iiib ) the National Children's Fund; or 100% ( iiic ) the Indira Gandhi Memorial Trust, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of February, 1985; or [ omitted by F.A. 2023 w.e.f. A.Y. 01 st April 2024 ] 50% ( iiid ) the Rajiv Gandhi Foundation, the deed of declaration in respect whereof was registered at New Delhi on the 21st day of June, 1991; or [ omitted by F.A. 2023 w.e.f. A.Y. 01 st April 2024 ] 50% ( iiie ) the National Foundation for Communal Harmony; or 100% ( iiif ) a University or any educational institution of national eminence as may be approved by the prescribed authority in this behalf; or 100% ( iiig ) the Maharashtra Chief Minister's Relief Fund during the period beginning on the 1st day of October, 1993 and ending on the 6th day of October, 1993 or to the Chief Minister's Earthquake Relief Fund, Maharashtra; or 100% ( iiiga ) any fund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stituted under section 7A of the Narcotic Drugs and Psychotropic Substances Act, 1985 ; or 100% 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. [ Section 80G(2)(d) read with section 80G(5C) ] Section 80G(5C) This section applies in relation to amounts referred to in clause ( d ) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpose and it fulfils the following conditions, namely :- ( i ) it is approved in terms of clause ( 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, 2004 ; ( iv ) the amount of donation remaining unutilised on the 31st day of March, 2004 is transferred to the Prime Minister's National Relief Fund on or before the 31st d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 80G(5D) ] The assessee has to produce the proof of payment before claiming such deduction. Note : Application for Approval and order of Approval to PCIT/CIT [ Amendment by FA 2020 , w.e.f. 01.04.2021 ] a) An entity already approved shall be required to apply for approval in Form 10A within 3 months from 01.04.2021, Such approval shall be valid for 5 Years b) Where Insitituton or fund is approved and period of such approval is due to expire, the application for renewal of approval in Form 10AB should be made atleast 6 months prior to expiry of approval. c) An entity making fresh application/First time approval shall make application in Form 10A u/s 80G shall be provisional approved for 3 years without detailed enquires, However, Subsequent approval shall be make before expiry of 6 months of provisional approval in Form 10AB. Other important Points In order to be eligible for deduction under section 80G donations need not necessarily come out of income chargeable to tax and that too of the previous year concerned. [ PARKSIDE HOLDINGS LTD. VERSUS DEPUTY COMMISSIONER 2001 (6) TMI 195 - ITAT MADRAS-B ] Filling statement of donation by the donee to cross check claim of donation by don ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; ( iii ) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; (iv) in any other case, where activities of the institution or fund have (A) not commenced, at least one month prior to the commencement of the previous year relevant to the assessment year from which the said approval is sought; (B) commenced 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 (v) or (vi) or (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, 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, or under any law corresponding to that Act in force in any part of India or under section 25 of the Companies Act, 1956, or is a University established by law, or is any other educat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution 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, 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) 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) aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which this sub-section has come into force, shall be deemed to be applications made under clause (iv) of the first proviso to section 80G(5) on that date. Important Explanation for this section 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 section 80G(5). 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 :- ( 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, section 12 or section 12A ; ( ii ) that, under clause ( c ) of section 13(1), the exemption under section 11 or section 12 is denied to the institution or fund in relation to any income arising to it from any investment referred to in ..... 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