May 7, 2023

Proof of entries in records or documents Entries in the records or other documents in the custody of an income-tax authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under this Chapter, and all such entries may be proved either by the production of the records or other documents in the custody of the income-tax authority containing such entries, or by the production of a copy of the entries certified by the income-tax authority having custody of the records or other documents under its signature and stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.

Certain offences to be non-cognizable Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable under section 276B or section 276C or section 276CC or section 277 or section 278 shall be deemed to be non-cognizable within the meaning of that Code.

Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner (1) A person shall not be proceeded against for an offence under section 275A, section 275B, section 276, section 276A, section 276B, section 276BB, section 276C, section 276CC, section 276D, section 277, section 277A or section 278 except with the previous sanction of the Principal Commissioner or Commissioner 71[or Joint Commissioner (Appeals)] or Commissioner (Appeals) or the appropriate authority: Provided that the Principal Chief Commissioner or Chief Commissioner or, as the case may be, Principal Director General or Director General may issue such instructions or directions to the aforesaid income-tax authorities as he may deem fit for institution of proceedings under this sub-section. Explanation.—For the purposes of this section, “appropriate authority” shall have the same meaning as in clause (c) of section 269UA. (1A) A person shall not be proceeded against for an offence under section 276C or section 277 in relation to the assessment for an assessment year in respect of which the penalty imposed or imposable on him under section 270A or clause (iii) of sub-section (1) of section 271 has been reduced or waived by an order under section 273A. (2) Any offence under this Chapter may, either before or after the institution of proceedings, be compounded by the Principal Chief Commissioner or Chief Commissioner or a Principal Director General or Director General. (3) Where any proceeding has been taken against any person under sub-section (1), any statement made or account or other document produced by such person before any of the income-tax authorities specified in clauses (a) to (g) of section 116 shall not be inadmissible as evidence for the purpose of such proceedings merely on the ground that such statement was made or such account or other document was produced in the belief that the penalty imposable would be reduced or waived, under section 273A or that the offence in respect of which such proceeding was taken would be compounded. (4) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of granting sanction under sub-section (1) or compounding under sub-section (2), so as to impart greater efficiency, transparency and accountability by— (a)  eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible; (b)  optimising utilisation of the resources through economies of scale and functional specialisation; (c)  introducing a team-based sanction to proceed against, or for compounding of, an offence, with dynamic jurisdiction. (5) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (4), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification: Provided that no direction shall be issued after the 31st day of March, 2022. (6) Every notification issued under sub-section (4) and sub-section (5) shall, as soon as may be after the notification is issued, be laid before each House of Parliament. Explanation.—For the removal of doubts, it is hereby declared that the power of the Board to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (including instructions or directions to obtain the previous approval of the Board) to other income-tax authorities for the proper composition of offences under this section.

Presumption as to culpable mental state (1) In any prosecution for any offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. Explanation.—In this sub-section, “culpable mental state” includes intention, motive or knowledge of a fact or belief in, or reason to believe, a fact. (2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.

Presumption as to assets, books of account, etc., in certain cases (1) Where during the course of any search made under section 132, any money, bullion, jewellery or other valuable article or thing (hereafter in this section referred to as the assets) or any books of account or other documents has or have been found in the possession or control of any person and such assets or books of account or other documents are tendered by the prosecution in evidence against such person or against such person and the person referred to in section 278 for an offence under this Act, the provisions of sub-section (4A) of section 132 shall, so far as may be, apply in relation to such assets or books of account or other documents. (2) Where any assets or books of account or other documents taken into custody, from the possession or control of any person, by the officer or authority referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of section 132A are delivered to the requisitioning officer under sub-section (2) of that section and such assets, books of account or other documents are tendered by the prosecution in evidence against such person or against such person and the person referred to in section 278 for an offence under this Act, the provisions of sub-section (4A) of section 132 shall, so far as may be, apply in relation to such assets or books of account or other documents.

Offences by Hindu undivided families (1) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render the karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a Hindu undivided family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any member of the Hindu undivided family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Offences by companies (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence under this Act has been committed by a person, being a company, and the punishment for such offence is imprisonment and fine, then, without prejudice to the provisions contained in sub-section (1) or sub-section (2), such company shall be punished with fine and every person, referred to in sub-section (1), or the director, manager, secretary or other officer of the company referred to in sub-section (2), shall be liable to be proceeded against and punished in accordance with the provisions of this Act. Explanation.—For the purposes of this section,— (a)  “company” means a body corporate, and includes—  (i)  a firm; and  (ii)  an association of persons or a body of individuals whether incorporated or not; and (b)  “director”, in relation to—  (i)  a firm, means a partner in the firm; (ii)  any association of persons or a body of individuals, means any member controlling the affairs thereof.

Power of Principal Commissioner or Commissioner to grant immunity from prosecution (1) A person may make an application to the Principal Commissioner or Commissioner for granting immunity from prosecution, if he has made an application for settlement under section 245C and the proceedings for settlement have abated under section 245HA. (2) The application to the Principal Commissioner or Commissioner under sub-section (1) shall not be made after institution of the prosecution proceedings after abatement. (3) The Principal Commissioner or Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from prosecution for any offence under this Act, if he is satisfied that the person has, after the abatement, co-operated with the income-tax authority in the proceedings before him and has made a full and true disclosure of his income and the manner in which such income has been derived : Provided that where the application for settlement under section 245C had been made before the 1st day of June, 2007, the Principal Commissioner or Commissioner may grant immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force. (4) The immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted. (5) The immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the Principal Commissioner or Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars material to the assessment from the income-tax authority or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the proceedings.

Punishment not to be imposed in certain cases Notwithstanding anything contained in the provisions of section 276A, section 276AB, or section 276B, 69-70[or section 276BB] no person shall be punishable for any failure referred to in the said provisions if he proves that there was reasonable cause for such failure.

Introduction As the saying goes, “charity begins at home.” Donating to charitable organizations not only makes us feel good but also helps those in need. But did you know that you can also save taxes while making charitable donations? Yes, you read that right! The Income Tax Act of India has a provision under Section 80G that allows taxpayers to claim deductions on their taxable income for donations made to certain charitable institutions. In this blog, we will discuss everything you need to know about the 80G deduction, including its qualifying limits, donations eligible for deduction, and much more. So, let’s get started! Section 80G Deduction Section 80G of the Income Tax Act, 1961, provides for deductions to taxpayers who make donations to specified charitable institutions. The deduction is available to individuals, Hindu Undivided Families (HUFs), companies, and firms. However, donations made in cash exceeding Rs. 2,000 are not eligible for a deduction under this section. The deduction is available to taxpayers who have made donations to institutions or funds that have been approved by the Government of India. The institutions or funds should have a valid 80G registration certificate, and the donation should be made in the form of a cheque, demand draft, or any other banking channels Qualifying Limit for Section 80G Deduction The qualifying limit for donations made under Section 80G varies depending on the nature of the institution or fund. Donations made to certain institutions are eligible for a 100% deduction without any qualifying limit, while others are eligible for a 50% deduction without any qualifying limit. Some institutions also have a qualifying limit for 100% or 50% deductions. Donations Eligible for Income Tax Deduction under Section 80G Not all donations made to charitable institutions are eligible for deductions under Section 80G. The following are the donations that qualify for deductions: Donations made to specified relief funds and charitable institutions such as the Prime Minister’s National Relief Fund, the National Defense Fund, the Chief Minister’s Relief Fund, and the State Relief Fund, among others. Donations made to institutions involved in promoting scientific research or social welfare, such as universities and colleges approved by the University Grants Commission (UGC) or any government authority. Donations made to political parties registered under Section 29A of the Representation of the People Act, 1951. Donations made for the renovation or maintenance of notified temples, mosques, churches, gurudwaras, or any other places of worship. Donations made to certain funds set up by the Central Government and notified by it in this behalf. 100% Deductible without Qualifying Limit Donations made to certain institutions or funds are eligible for a 100% deduction without any qualifying limit. These include: Donations made to the National Defense Fund, the Prime Minister’s National Relief Fund, the Prime Minister’s Armenia Earthquake Relief Fund, the Africa (Public Contributions – India) Fund, and the National Foundation for Communal Harmony. Donations made to any approved university or educational institution of national eminence. Donations made to the Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district. Donations made to the Fund for Technology Development and Application. Donations made to the National Blood Transfusion Council Donations made to the Swachh Bharat Kosh set up by the Central Government. Donations made to the Clean Ganga Fund set up by the Central Government. 50% Deductible without Qualifying Limit Donations made to certain institutions or funds are eligible for a 50% deduction without any qualifying limit. These include: Donations made to the Jawaharlal Nehru Memorial Fund. Donations made to the Indira Gandhi Memorial Trust. Donations made to the Rajiv Gandhi Foundation. Donations made to the National Children’s Fund. Donations made to the Prime Minister’s Drought Relief Fund. 100% Deductible Subject to Qualifying Limit Donations made to certain institutions or funds are eligible for a 100% deduction, subject to a qualifying limit. The qualifying limit is 10% of the gross total income for individual taxpayers and 5% of the gross total income for corporate taxpayers. These include: Donations made to any approved research association engaged in scientific research. Donations made to any approved association or institution that undertakes or carries out any program of rural development. Donations made to any approved association or institution that undertakes or carries out any program of rural development 50% Deductible Subject to Qualifying Limit Donations made to certain institutions or funds are eligible for a 50% deduction, subject to a qualifying limit. The qualifying limit is 10% of the gross total income for individual taxpayers and 5% of the gross total income for corporate taxpayers. These include: Donations made to any approved charitable institution or trust that is established for the relief of poverty or distress. Donations made to any approved charitable institution or trust that is established for the promotion of education or any other object of general public utility. FAQs Q. Can I claim a deduction for donations made in cash? A. No, donations made in cash exceeding Rs. 2,000 are not eligible for a deduction under Section 80G. Q. Can I claim a deduction for donations made to any charitable institution? A. No, only donations made to specified institutions or funds that have been approved by the Government of India are eligible for deductions under Section 80G. Q. Is there any limit on the amount of donation eligible for deduction under Section 80G? A. Yes, the limit varies depending on the nature of the institution or fund. Some institutions have a qualifying limit for 100% or 50% deductions, while others are eligible for a 100% deduction without any qualifying limit. Q. Can I claim a deduction for donations made to political parties? A. Yes, donations made to political parties registered under Section 29A of the Representation of the People Act, 1951, are eligible for deductions under Section 80G. Conclusion The 80G deduction is a great way to support charitable causes while also saving taxes. It is essential to keep in mind the qualifying limits and eligible institutions while making donations to