Conditions to be satisfied
1- Donation must be paid in money and not in money’s worth: - the deduction is allowed if the donation is made in monetary terms it means either cash or cheque or demand draft. Deduction won’t be allowed if the payment is any kind of nature explained in 5 of section 80G of income tax.
2- The donation may be paid either out of taxable or exempted income: - taxability of the source of the donation is not relevant.
3- Deduction for donation can not be claimed twice u/s 80G(5A):- where a deduction is claimed and allowed u/s 80G , the sum in respect of which deduction is allowed will not qualify for deduction under any other provision of the for the same or any other assessment year.
4- Donations must be paid only to specified funds, institutions or trust: - no deduction is allowed if donations are paid not specified u/s 80G.
5- Violation of conditions of approval by the donee fund or institutions will not affect the donor’s right to claim deduction.
