Under the provisions of Section 80G. a non-resident Indian, like any other taxpayer, is entitled to a deduction of the qualifying amount of donation in computing his total income. The important Funds which qualify for such deduction are Jawaharlal Nehru Memorial Fund or the Prime Minister’s Relief Fund or the Prime Minister’s National Relief Fund or the Indira Gandhi Memorial Trust, etc or any other Fund or any institution exempt under Section 80G. Contribution to the Prime Minister’s National Relief Fund, the P.M. Armenia Earthquake Relief Fund, the Africa (Public Contributions — India), a University or any approved educational institution of national eminence, the Zila Saksharta Samiti, the National Blood Transfusion Council, etc., N.F. for Communal Harmony, National Illness Assistance Fund, C.M./L.G. Relief Fund, National Sports Fund (from A.Y. 1999-2000) contribution to the Government, certain approved institutions, etc., for family planning and the Fund for Technology Development and application set up by the Central Government (from the A.Y. 2000-2001), donations for Kargil jawans (from the A.Y. 2000-2001) and the National Trust for Welfare of persons with Autism, Cerebral Palsy Mental Retardation and Multiple Disabilities (from the A.Y. 2002- 2003) is entitled to deduction @ 100% of the donation. In all other cases the rate of deduction is 50% of the donation. As regards the maximum eligible deduction there is no limit regarding donation to the National Defence Fund or Jawaharlal Nehru Memorial Fund or the Prime Minister’s National Relief Fund or the Prime Minister’s Drought Relief Fund or the Prime Minister’s Armenia Earthquake Relief Fund or the Africa (Public Contributions-India) Fund or the National Children’s Fund or the Indira Gandhi Memorial frust or the Rajiv Gandhi Foundation or the National Foundation for Communal Harmony or National Illness Assistance Fund or a University or an approved educational institution or any Zila Saksharta Samiti or the National Blood Transfusion Council or any State Blood Transfusion Council or any fund set up by a State Govt. to provide medical relief to the poor or to Army, Naval or Air Force Welfare Funds. In respect of all other donations like donation to a charitable institution exempt under Section 80G, the maximum amount of donation eligible for deduction is 10% of the gross total income (as reduced by any other sum on which income tax is not payable under the Income Tax Act and any sum in respect of which the assessee is entitled to deduction under Chapter VI-A of the I.T. Act, as discussed in this Session), whichever is less. No deduction is allowed on donation in kind. |
