INCOME TAX

Submission of certificate for claiming deduction under section 80G in respect of donations made by an employee to the National Defence Fund, the Army Central Welfare Fund, the Indian Naval Benevolent Fund, the Air Force Central Welfare Fund

Circular : No. 777, dated 1-7-1999.

In view of the unforeseen and unavoidable developments taking place in Kargil and nearby areas, employees of Central Government, State Governments, Public Sector undertakings, Private Sector Companies and Corporations, and local authorities are making donations to the National Defence Fund and other funds, as referred to above, set up by the Central Government/Armed Forces of the Union, through their respective employers/organisations. An employee who is making such donations is eligible to claim deduction under section 80G of the Income-tax Act, 1961 on the basis of the certificate issued by the recipient organisation. However, it may not be possible for every employee to obtain a certificate in respect of donations made through their organisation since the contributions to the fund(s) will be made in the form of a consolidated cheque. It is, therefore, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G of the Income-tax Act, 1961, on the basis of the certificate issued by the DDO/Employer, in this behalf.

Circular : No. 777, dated 1-7-1999.