Union Budget for 2023-24 has removed the Jawaharlal Nehru Memorial Fund, Indira Gandhi Memorial Trust and Rajiv Gandhi Foundation from the list of eligible funds for claiming deductions in respect of contribution/donation under Section 80G of the Income Tax.
The Finance Bill has proposed schedule number for three entries (sub-clauses (ii), (iiic) and (iiid) of clause (a) of sub-section (2)) from the list of entities eligible for deduction. “It has been observed that there are only three funds based on names of the persons in the said section,” explanatory memorandum to the Finance Bill said. This amendment will take effect from April 01, 2024 and shall accordingly, apply in relation to the assessment year 2024-25 and subsequent assessment years.
Section 80G of the Act, provides for the procedure for granting approval to certain institutions and funds receiving donation and the allowable deductions in respect of such donations to the assessee making such donations. Sub-section (2) of section 80G of the Act provides the list of these funds to which any sum paid by the assessee in the previous year as donations is allowed as a deduction to an extent of 50 per cent/100 per cent of the amount so donated.
The list of fund includes, the National Defence Fund set up by the Central Government, the Prime Minister’s Drought Relief Fun, the Prime Minister’s National Relief Fund, PM CARES Fund, the Prime Minister’s Armenia Earthquake Relief Fund, the National Children’s Fund, the National Foundation for Communal Harmony, a University or any educational institution of national eminence, the National Blood Transfusion Council or to any State Blood Transfusion Council, any fund set up by a State Government to provide medical relief to the poor; orthe Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants, and the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union territory, beside others