Any amount given to an institution or association is Deductible for calculation of Profit and Gains of Business or Professions subject to the following Implications & Conditions ...
(i) Any amount given to an institution or association whose object is to undertake any programme of rural development
(ii) Any amount given to an institution or association whose object is training of persons for rural development
(iii) Any Rural Development Fund set up and notified by the Central Government
(iv) The National Urban Poverty Eradication Fund set up and notified by the Central Government.
Deduction under this section shall be allowed only if following conditions are also satisfied:
(i) The assessee has obtained the approval of the prescribed authority in respect of such programme before the 1st day of March 1983;
(ii) Such programme involves work by way of construction of any building or other structure Whether for use as dispensary, school, training or welfare centre, workshop or any other purpose or the laying of any road or the construction or boring of a well or tubewell or the installation of any plant and machinery and such work has commenced before the 1st day of March 1983;
(iii) The expenditure on such programme is incurred in a case where the approval of the prescribed authority in respect of such programme has been granted for a specified period before the expiry of that period and any other case before the 1st day of March 1984;
(iv) The assessee furnishes, alongwith the return of income for the assessment year for which the deduction is claimed, a statement of such expenditure in the prescribed form duly signed and verified by Chartered Accountant; and setting forth such particulars as may be prescribed.
This benefit will be available only if contribution is made to an association or institution which is approved in this behalf by prescribed authority.
This deduction will also be available on any amount paid to a rural development fund set up and notified by the Central Government in this behalf.