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 institutions.
The deduction is allowed at the rate of fifty per cent of the amount of
donations made except in the case of donations made to certain funds and institutions
specified in clause (i) of sub-section (1) of section 80G, where deduction is
allowed at the rate of one hundred per cent. In the case of donations made to
the National Children’s Fund, deduction is allowed at the rate of fifty per
cent of the amount so donated.
Donations to Funds which are of national
importance have been generally provided a deduction of one hundred per cent of
the amount donated. Since the National Children’s Fund is also a Fund of
national importance, it is proposed to allow hundred per cent deduction in
respect of any sum paid to the Fund in computing the total income of an
assessee.
