The Income Tax Department and the Finance Ministry has clarified that all donations to Assam Arogya Nidhi are eligible for 100 per cent deduction as per Sec 80G (1).
In a letter to the National Health Mission Director, Sumit Purkayastha, Assistant Commissioner of Income Tax (ACIT) (Exemption) stated that as per provision of Sec. 80G (2) (iiihb) of the Income tax Act, donation made to any fund set up by a State Government to provide medical relief to the poor is eligible for 100 per cent deduction as per Sec 80G (1).
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Assam health and finance minister Himanta Biswa Sarma took to Twitter to announce this and said this and said it is a reason to cheer for all those who have contributed to the fund.
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act.
All donations, however, are not eligible for deductions under section 80G.
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Only donations made to prescribed funds qualify as a deduction.
This deduction can be claimed by any taxpayer – individuals, company, firm or any other person.
Notably, till Wednesday 12,934 people or organizations have contributed to Assam Arogya Nidhi helping the State Government in its fight against COVID-19.
A total of Rs 31.95 crore has been collected so fat through Assam Arogya Nidhi.