I want to know the details of the provisions under Section 80G of the Income Tax Act and its limitations with regard to donations to charitable institutions or social organisations?

A.K. Dutta, Calcutta

Only donations made to specified institutions qualify for deduction under Section 80G. In certain cases, donations up to 10 per cent of the gross total income reduced by all other deductions under Chapter VI-A, such as 80C, 80D, long-term capital gains, agricultural income and so on, is allowed for tax deduction. The website of the I-T department gives the full list of institutions that qualify under Section 80G: http://www.incometaxindia.-gov.in/Acts/INCOME%20TAX%20Act/80g.asp. In some cases, 100 per cent deduction is allowed with a qualifying limit, while in some cases only 50 per cent deduction is allowed with a qualifying limit. A 100 per cent deduction is allowed for some funds, such as Prime Minister’s National Relief Fun, without any limit. Similarly, 50 per cent deduction is allowed without any limit for Indira Gandhi Memorial Trust. You shall need to keep a stamped acknowledgement of the donation receipt and a photocopy of the 80G certificate of the donee organisation to claim tax deduction.

Super senior

I am 84-years-old and a state government pensioner. In 2011-12, my total income will be Rs 4,19,764, including interest income from bank deposits and pension payments. I don’t have any movable or immovable property. What will be my basic exemption limit for income tax? Shall I have to submit income tax return for assessment year 2012-13?

A. Majumdar, Panihati

In his budget proposals for 2011-12, finance minister Pranab Mukherjee had introduced a super senior citizen category. People who are aged 80 years or more will fall in this category and the basic exemption limit for this category has been kept at Rs 5 lakh. This means domestic citizens who are 80 years or more won’t have to pay income tax if their gross annual income is less than Rs 5 lakh. You belong to this new category and since your annual income for 2011-12 will be less than Rs 5 lakh you don’t have to pay any tax or submit any return. You can submit Form 15H with your bank for non-deduction of tax (on interest income) at source.

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