Section 80G — Deductions for Donations to Certain Funds, Charitable Institutions, etc.

Section 80G of the Income-tax Act, 1961 provides tax deductions for donations made to certain funds, charitable institutions, and other eligible entities. This section is significant as it encourages philanthropy by offering tax incentives to individuals and corporations. The deduction can be claimed by any taxpayer, whether an individual, company, firm, or any other person. The amount of deduction varies depending on the type of institution and is subject to certain limits and conditions. Some donations qualify for a 100% deduction without any qualifying limit, while others are eligible for a 50% deduction, with or without a qualifying limit. The taxpayer must ensure that the institution to which the donation is made is approved under Section 80G and must retain the donation receipt as proof. This section plays a crucial role in supporting charitable activities and promoting social welfare through tax incentives.

Common Litigation Flashpoints

1. Eligibility of the institution for Section 80G approval
2. Classification of donations for 100% or 50% deduction
3. Documentation and receipt requirements for claiming deduction
4. Disallowance of deduction due to non-compliance by the charitable institution

Judgments on Section 80G — Deductions for Donations to Certain Funds, Charitable Institutions, etc.

• Voltas Limited vs Assistant Commissioner of Income Tax Circle -8(3) (1), Mumbai — HC, 2022
  Reopening of assessment based solely on a change of opinion is impermissible under the Income Tax Act.
• M/s. Goldman Sachs Services Pvt. Ltd. vs Joint Commissioner of Income Tax — ITAT, 2020
  Disallowance under section 14A is not applicable if no exempt income is earned during the assessment year.
• J K Investo Trade (India) Limited vs DCIT — ITAT, 2023
  The assessee is eligible to claim deduction under Section 80G irrespective of the fact that the corpus contribution relates to CSR activities.
• Delhi Duty Free Service [P] Ltd Vs. The Dy. CI.T. — ITAT, 2025
  CSR expenses can qualify for deduction under Section 80G if they meet the necessary criteria outlined in the Income Tax Act.
• M/s. Alubound Dacs India Private Limited vs. Dy. CIT — ITAT, 2024
  CSR expenses mandated by law can be claimed as a deduction under Section 80G if they meet the stipulated conditions.
• Interglobe Technology Quotient Private Limited vs ACIT — ITAT, 2024
  CSR contributions can be eligible for deduction under section 80G if they meet the necessary conditions.
• Allegis Services (India) Pvt. Ltd. vs Asst. Commissioner of Income Tax — ITAT, 2020
  Expenditure incurred under Section 80G cannot be denied merely because it forms part of CSR payments, leading to double disallowance.
• M/s JMS Mining Pvt. Ltd. vs PCIT, Kolkata-2 — ITAT, 2021
  The invocation of jurisdiction under Section 263 requires the order of the Assessing Officer to be both erroneous and prejudicial to the revenue.