100% deduction for National Fund for Control of Drug Abuse u/s 80G

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Under the existing provisions of section 80G, an assessee is allowed a deduction from his total income in respect of donations made by him to certain funds and charitable institutions. The deduction is allowed at the rate of hundred percent of the amount of donations made to certain funds and institutions formed for a social purpose of national importance, like the Prime Ministers’ National Relief Fund, National Foundation for Communal Harmony etc.

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The National Fund for Control of Drug Abuse is a fund created by the Government of India in the year 1989, under the Narcotic Drugs and Psychotropic Substances Act, 1985. Since National Fund for Control of Drug Abuse is also a Fund of national importance, it is proposed amend section 80G so as to provide hundred percent deduction in respect of donations made to the said National Fund for Control of Drug Abuse.

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This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years.

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Clause 21 of Finance Act 2015

In section 80G of the Income-tax Act,—

(A) in sub-section (1), in clause (i),—

(I) after the words, brackets, figures and letters “sub-clause (iiihj) or”, the words, brackets, figures and letters “sub-clause (iiihk) or sub-clause (iiihl) or” shall be inserted;

(II) after the words, brackets, figures and letters “sub-clause (iiihl) or”, as so inserted, the words, brackets, figures and letters “sub-clause (iiihm) or” shall be inserted with effect from the 1st day of April, 2016;

(II) the following sub-clause shall be inserted with effect from the 1st day of April, 2016, namely:—

“(iiihm) the National Fund for Control of Drug Abuse constituted under section 7A of the Narcotic Drugs and Psychotropic Substances Act, 1985; or”.

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