Exemption on donation
Madhu
(Querist) 07 April 2012
This query is : Resolved
Sir,
I would like to know if there is any exemption on tax for donation of real estate(Houses/Land)to charity in India?
Thanks in advance.
ajay sethi
(Expert) 07 April 2012
Donations for charity come under section 80 G of the Income Tax Act, 1961
According to the section 80 G these funds where 100% of the amount donated can be deducted are :-
The Prime Minister's National Relief Fund.
The Prime Minister's Armenia Earthquake Relief Fund.
The Africa (Public Contributions-India) Fund.
The National Foundation for Communal Harmony.
A University or any educational institution of national eminence as maybe approved by the prescribed authority. Please note that the prescribed authority in the case of a university or non-technical institution. Of national eminence is Director-General (Income-Tax exemption) in concurrence with the Secretary, University Grants Commission. In the case of any technical institution of national eminence the prescribed authority is the Director General (Income-Tax Exemption) in concurrence with the Secretary, All India Council of Technical Education.
The Maharashtra Chief Minister's Earthquake Relief Fund.
Any Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for the purpose of improvement of primary education in villages and towns in such a district and for literacy and post literacy activities.
The national Blood Transfusion Council or any State Blood Transfusion council whose sole objective is the control, supervision, regulation or encouragement in India of the services related to operation and requirements of blood banks.
Any fund set up by a State Government to provide medical relief to the poor.
The 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.
The Andhra Pradesh Chief Minister's Cyclone Relief Fund, 1996.
The National Illness Assistance Fund.
The Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in any State or Union Territory.
The Government, or any local authority, institution or association as maybe approved by the Central Government for the purpose of promoting family planning.
Category (B)
The funds under which donations will qualify for deductions only upto 50% of the amount donated are :-
The National Defence Fund set up by the Central Government.
The Jawaharlal Nehru Memorial Fund.
The Prime Minister's Drought Relief Fund.
The Indira Gandhi Memorial Trust.
The Rajiv Gandhi Foundation.
The National Sports Fund to be set up by the Central Government.
The National Cultural Fund.
The fund for Technology Development and Application set up by the Central Government.
A V Vishal
(Expert) 07 April 2012
Donations in kind have no exemptions.
Madhu
(Querist) 07 April 2012
@Ajay Sethi: Thank u sir.
But my question went unanswered.
When money is donated to charity, tax exemption is available.
I would like to know if the same is available if real estate is donated to charity.
Kindly reply.
C. P. CHUGH
(Expert) 07 April 2012
Well it would depend, how the receipient accounts for the said donation. In case he converts the 'in kind' donation into monetary value of the 'in kind' and issues you the receipt of money received, you would definitely get deduction, if otherwise eligible. Please also note, that one can claim deduction under section 80G of the act to the extent of 10% of his income for that relevant year.
