Govt Clears Air: All Donations to Assam Arogya Nidhi Cent Percent Exempted from Income Tax
GUWAHATI: The Income Tax Department, India & Ministry of Finance, Government of India has clarified that all donations to Assam Arogya Nidhi are eligible for 100% deduction as per Sec 80G(1).
In a letter to the National Health Mission Director, Sumit Purkayastha, Assistant Commissioner of Income Tax (ACIT) (Exemption) stated that as per provision of Sec. 80G (2) (iiihb) of the Income tax Act, donation made to any fund setup by a State Government to provide medical relief to the poor is eligible for 100% deduction as per Sec. 80G(1).
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations, however, are not eligible for deductions under section 80G. Only donations made to prescribed funds qualify as a deduction.
This deduction can be claimed by any taxpayer – individuals, company, firm or any other person.