Registered in section 12(A) No.CIT-1/T/120(K-41)Agra/2004-05/3261
Donation for this trust are eligible for tax relief under section 80G of income tax Act 1961.
Kamdhenu dham patnagarh(Orissa)India.
Our organization (kamdhenu) is an all India basis org. we tried to develop the poor-villages in Orissa by training the farmers on cow based cultivation and cottage industry with preserving forest, water, soil and wild life. In Orissa more than 200 villages have already been undertaken and village committees have been formed. For this purpose 7-acres of land has been taken (1-acr.from donation, 7- acr.s from govt.) 5 K.M.s away from patnagarh city.
What we humbly need from you:-
60’x20’ tin thatched shed. Costing about =Rs. 3,60,000/-
20’x15’ R C C roof Costing about= Rs.150,000/-
3-Medicine manufacturing shed:
10’x40’ hall Costing about =Rs. 2,00,000/-
4-Compost(manure) making pit(10.no.s)
6’x12’x6’ pit@=Rs 5000/- each =Rs.50,000/-
5-Shelter for old age & disable Cattle (100 nos.)
40 sq. ft/cow , total 4000 sq ft @Rs. 30/ sq. ft = Rs. 1,20,000/-
6-Feed go-down (dried fodder store)= Rs. 50,000/-
7-Free health centre:
15’x20’ costing about Rs:1,80,000/-
4-no.s x 1,00,000/- =Rs. 4,00,000/-
9-Borewell ,motor and over head tank with all fittings Rs. 1,20,000/-
Salient features of kamdhenu dham patnagarh:-
1-Farmers training about cow based cultivation.
4-Self employment scheme for rural people.
5-Free health service.
7-Preservation and improvement of live stock.
For details plz visit: www.sevika.org/, www.kamdhenudham.blogspot.com/
Phone - +91 6658 222 918
Mob - +91 94394 22804
For the Assessment Year 2009-10Donations to electoral trusts to be allowed as a 100 percent deduction in the computation of the income of the donor.
For the Assessment Year 2006-07
Under this section deduction is made in respect of donations to certain funds, charitable institutions, etc. Deduction is not available for donations given in kind.
The deduction is available only for the entity to which donations is made is an approved charitable institution by the government. A receipt of the institute, in evidence made, should be attached to the return of income.
The deduction is available on donations to funds and charitable institutions specified under Section 80G.
You can claim 100 per cent deduction in respect of donations to
The Prime Minister?s National Relief Fund
Armenia Earthquake Relief Fund
Africa (Public Contributions--India) Fund
National Foundation for Communal Harmony
An approved university or educational institution of national eminence
Chief Minister?s Earthquake Relief Fund, Maharashtra
Zila Saksharta Samiti
The National Blood Transfusion Council or the Blood Transfusion Councils of all states
Any fund set up by a state government for the medical relief of the poor
The Army/Navy/Air Force Welfare Fund
The Andhra Pradesh Chief Minister?s Cyclone Relief Fund
The National Illness Assistance Fund
The Chief Minister?s Relief Fund or the Lieutenant-Governor?s Relief Fund of any state or Union Territory
The National Sports Fund and the National Cultural Fund
Any approved local authority, institution or association that promotes family planning
A deduction of 50 per cent is allowed in respect of donations to
The National Defence Fund
The Jawaharlal Nehru Memorial Fund
The Prime Minister’s Drought Relief Fund
The National Children’s Fund
The Indira Gandhi Memorial Trust
The Rajiv Gandhi Foundation
Any fund or institution established in India for a charitable purpose, which incurs a maximum expenditure of 5 per cent of its income for religious purposes
The government or local authority for charitable purpose (other than promotions for family planning)
Any authority engaged in town planning and housing
Any corporation established by the central/state government for promoting the interest of the members of a minority community
Any temple, mosque, gurudwara, church or other place of worship that is of historic, archaeological or artistic importance
Conditions. There are, however, a few conditions to be met for you to be eligible for a deduction.
You should have a gross total income (income before deductions) for you to be eligible for the tax benefits
You should make donations in cash; donations in kind don?t qualify for a deduction
You should make donations to the specified institutions
You should make donations within the limits specified under the law for you to claim it as a deduction
Specified limits for donations. Typically, donations in excess of 10 per cent of your gross total income are not eligible for a deduction. In the case of donations to funds such as the Prime Minister’s Drought Relief Fund and the National Children’s Fund, you get a deduction of 50 per cent of the donation made, provided it does not exceed 10 per cent of your gross total income.
However, there are several funds, such as the Army Central Welfare Fund and the Prime Minister?s National Relief Fund, where you can claim a deduction on the entire amount donated. The 10 per cent ceiling for donations does not apply in these cases.
with a salary of 4.28 lakhs the maximum u can donate under section 80 g is 42,800/- i.e. 10 % of your total income. out of this amount you can deduct rs 21,400/-from your toal income aprt from rs 1 lakh u have invested under section 80c. so, u are saving 30 % of 21,400 as tax.
INSPITE of all the contributions made to social causes, there is a huge gap between the demand of money from the needy and the amount donated by philanthropists. This probably, is the reason why the Government has given tax benefits on donations. The amount donated towards charity attracts deduction under section 80G of the Income Tax Act, 1961. Section 80G has been in the law book since financial year 1967-68 and it seems it’s here to stay. Several deductions have been swept away but the tax sop for donations appears to have survived the axe. The main features of tax benefit with respect to charity are as follows:
Allowable to all kind of Assessee:- Any person or ‘assessee’ who makes an eligible donation is entitled to get tax deductions subject to conditions. This section does not restrict the deduction to individuals, companies or any specific category of taxpayer.
Donation to Foreign Trust:- Donations made to foreign trusts do not qualify for deduction under this section.
Donation to Political Parties:- You cannot claim deduction for donations made to political parties for any reason, including paying for brochures, souvenirs or pamphlets brought out by such parties.
Only donation made to made to prescribed funds and institutions qualify for deduction: - All donations are not eligible for tax benefits. Tax benefits can be claimed only on specific donations i.e. those made to prescribed funds and institutions.
Maximum allowable deduction:- If aggregate of the sums donated exceed 10% of the adjusted gross total income, the amount in excess of 10% ceases to be entitled fortax benefit.
Documentation Required for Claiming deduction U/s. 80G
• Stamped receipt: For claiming deduction under Section 80G, a receipt issued by the recipient trust is a must. The receipt must contain the name and address of the Trust, the name of the donor, the amount donated (please ensure that the amount written in words and figures tally).
• Mention of Registration No. of the Trust Under 80G on receipt:- The most important requirement is the Registration number issued by the Income Tax Department under Section 80G. This number must be printed on the receipt. Generally, the Income Tax Department issues the registration for a limited period (of 2 years) only. Thereafter, the registration has to be renewed. The receipt must not only mention the Registration number but also the validity period of the registration.
• Validity of Registration U/s. 80G on the date of Donation:- The donor must ensure that the registration is valid on the date on which the donation is given. For example, the registration of a trust may be valid from April 1, 2007 to March 31, 2009. Now, if the trust does not get its registration renewed on or after April 1, 2009 then even ifdonation receipt is issued by the trust to the donor for donations received on or after April 1, 2009, the donor would not get any tax benefit.
• Photocopy of the 80G certificate :- Check the validity period of the 80G certificate. Always insist on a photocopy of the 80G certificate in addition to the receipt.
Only donations in cash/cheque are eligible for the tax deduction:-Donations in kind do not entitle for any tax benefits. For example, during natural disasters such as floods, earthquake, and many organisations start campaigns for collecting clothes, blankets, food etc. Such donations will not fetch you any taxbenefits.
Donation made by NRI: - NRIs are also entitled to claim tax benefits against donations, subject to the donations being made to eligible institutions and funds.
Deduction if donation deducted from Salary and donation receipt certificate is on the name of employer:- Employees can claim deduction u/s 80G provided a certificate from the Employer is received in which employer states the fact that The Contribution was made out from employee’s salary account.
Limit on donation amount: -There is no upper limit on the amount of donation. However in some cases there is a cap on the eligible amount i.e. a maximum of 10% of the gross total income.
Deduction amount U/s. 80G:- Donations paid to specified institutions qualify for tax deduction under section 80G but is subject to certain ceiling limits. Based on limits, we can broadly divide all eligible donations under section 80G into four categories:
a) 100% deduction without any qualifying limit (e.g., Prime Minister’s National Relief Fund).
b) 50% deduction without any qualifying limit (e.g., Indira Gandhi Memorial Trust).
c) 100% deduction subject to qualifying limit (e.g., an approved institution for promoting family planning).
d) 50% deduction subject to qualifying limit (e.g., an approved institution for charitable purpose other than promoting family planning).
For list of Institution donation to whom is eligible to 100% deduction without any qualifying limit, eligible to 50% deduction without any qualifying limit, 100% & Subject to qualifying limit and of those eligible for 50% deduction subject to qualifying limit please check the link given below:-
Qualifying Limit:- The qualifying limits u/s 80G is 10% of the adjusted gross total income. The limit is to be applied to the adjusted gross total income. The ‘adjusted gross total income’ for this purpose is the gross total income (i.e. the sub total of income under various heads) reduced by the following:
• Amount deductible under Sections 80CCC to 80U (but not Section 80G)
• Exempt income
• Long-term capital gains
• Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D, relating to non-residents and foreign companies.
Eligible Donation:- There are thousands of trusts registered in India that claim to be engaged in charitable activities. Many of them are genuine but some are untrue. In order that only genuine trusts getthe tax benefits, the Government has made it compulsory for all charitable trusts to register themselves with the Income Tax Department. And for this purpose the Government has made two types of registrations necessary u/s. 12A & U/s. 80G. Only if the trust follows the registration U/s. 12A, they will getthe tax exemption certificate, which is popularly known as 80G certificate. The government periodically releases a list of approved charitable institutions and funds that are eligible to receive donations that qualify for deduction . The list includes trusts, societies and corporate bodies incorporated under Section 25 of the Companies Act 1956 as non-profit companies.
Tax benefit depends on rate of Tax applicable to the Assessee:- Let us take an illustration. Mr. X an individual and M/s. Y Pvt. Ltd., a Company both give donation of Rs. 1,00,000/- to a NGO called Satyakaam. The total income for the A.Y. year 2009-2010 of both Mr. X and Ms. Y Pvt. Ltd. is Rs. 3,00,000/-. Thetax benefit would be as shown in the table:
Mr. X MS. Y Pvt. Ltd.
i) Total Income for the year 2008-2009 3,00,000.00 3,00,000.00
ii) Tax payable before Donation 15,000.00 90,000.00
iii) Donation made to charitable organisations 1,00,000.00 1,00,000.00
iv) Qualifying amount for deduction (50% of donation made) 50,000.00 50,000.00
v) Amount of deduction u/s 80G (Gross Qualifying Amount subject to a maximum limit 10% of the Gross Total Income) 30,000.00 30,000.00
iv) Taxable Income after deduction 2,70,000.00 2,70,000.00
v) Tax payable after Donation 12,000.00 81,000.00
vi) Tax Benefit U/S 80G (ii)-(v) 3,000.00 9,000.00
• Education Cess & Sec. & Higher Educ. Cess has not been included in working of tax benefit.
IILUSTRATION OF BENEFITS UNDER SECTION 80G1. Donations to private trusts
Step 1: Find out the qualifying amount
The qualifying amount under this category will be lower of the following two amounts:
a) The amount of donation
b) 10 per cent of the gross total income as reduced by all other deductions under Chapter VI-A of the Income Tax Act such as 80C (PPF, LIC etc.), 80D (mediclaim), 80CCC (pension schemes etc.).
For example, a taxpayer named Laxmi Arcelor has taxable salary of Rs 500,000. He has deposited Rs 70,000 in Public Provident Fund and Rs 60,000 in his company provident fund. He donates Rs 45,000 to CRY (Child Relief & You) trust. Presuming he has no other income, his taxable income will be computed as under:
Gross salary Rs 500,000
Less: Deduction under section 80C restricted to Rs 100,000
Gross total income (before 80G) Rs 400,000
After making donation to CRY, his qualifying amount for 80G will be:
Actual amount of donation Rs 45,000
10% of Gross total income as computed above Rs 40,000 whichever is lower
Since 40,000 is lower, the qualifying amount will be Rs 40,000
Step 2: Find out actual deduction
The next question that arises is how much would be the actual deduction? In the case of donations to private trusts, the actual amount of donation would be 50 per cent of the qualifying amount.
Therefore, in the example given above, since the donation is made to a private trust, the deduction will be 50 per cent of the qualifying amount ie 50 per cent of Rs 40,000 = Rs 20,000.
Gross total income (Before 80G) Rs 400,000
Less: deduction under section 80G Rs 20,000
Total income (taxable income) Rs 380,000
Step 3: Check upper limit
Finally, the deduction under section 80G cannot exceed your taxable income. For example, if your income before deduction is Rs 3 lakh and if you have given donation of Rs 5 lakh to the Prime Minister’s National Relief Fund, please do not expect to claim a loss of Rs 2 lakhs. Your income will be NIL (Rs 3 lakh – Rs 3 lakh). The deduction will be restricted to the amount of your income.
ii) Donations to trusts/funds set up by the Government
In this category, the entire amount donated i.e. 100 per cent of the donation amount is eligible for deduction. There is a long list of 21 funds/institutions/purposes for which donations given would qualify for 100 per cent eligibility. Notable among this list are:
- The National Defence Fund
- The Prime Minister’s National Relief Fund
- Any fund set up by the State Government of Gujarat for earthquake relief
The funds that figure in this long list are all set up by the Government. Private Trusts do not figure in this list.
Thus, in this category of donations, the ceiling of 10 percent of the gross total income as reduced by all other deductions under Chapter VI-A of the Income Tax Act does not apply.
In the above example, if instead of donating to CRY, had the donation been given to say, The Prime Minister’s National Relief Fund, then the calculations would have different as shown below:
Gross Total Income (Before 80G) Rs 400,000
Less: Deduction under section 80G Rs 45,000
Total Income (Taxable Income) Rs 355,000
dharati jariwala Says:October 29th, 2009 at 11:33 AM
NO NEED TO RENEW CERTIFICATE u/s 80G after 1.10.2009. If certificate is granted upto 31.03.2010 which procedure should follow to continue.