Deduction under Section 80G for Free Services to NGO

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  1. pravin shetty

    pravin shetty New Member

    Dear Team,

    Greetings for the day!!!

    One question has crossed my mind & i hope this forum would help to resolve the same.
    i have a basic understanding that a cash donation to registered NGO is liable for tax exemptions upto certain percentage as per various sections .

    i wonder if the services rendered to the Ngo or a needy person, whether the same can be liable for exemption? for ex:- if any professional doctors / teachers / lawyers etc instead of donating a cash volunteers to render his professional service to an NGO, Whether he / she will be liable for exemptions.

    Anticipating a response or a brief to my query.

    Thanking You ,

    Pravin Shetty
    Mob 7678024990.
  2. Hardik R Dani

    Hardik R Dani New Member

    Deduction u/s 80G is applicable provided the donation is made in cash, donations in kind are not eligible for deduction u/s 80G
    pravin shetty likes this.
  3. Neha Sharma

    Neha Sharma Active Member

    @pravin shetty
    If you are providing some services for free, you wont be receiving any income and thus no tax would be levied on such income which was never received.

    Let me explain this with the help of an example. Its like you provided services worth Rs. 15,000. In normal circumstances, you would have received this Rs. 15,000 and income tax would have been levied on Rs. 15,000.

    However, as you would would have in turn donated this Rs. 15,000 for some social cause, you would have claimed deduction under Section 80G

    80G comes into play in the above case.

    However in your case, you are not receiving Rs. 15,000. You are providing these services for free. So, Section 80G does not come into play in this case.
    pravin shetty likes this.
  4. pravin shetty

    pravin shetty New Member

    Thank you Team for your clarification:).

    got the satisfactory response to my query..

    But hope some day services rendered to social cause could get some recognition under certain section for promoting professionals to render charitable services in there area of expertise to the deprived souls.

    for ex- A doctor who normally charges 50k for certain opeartion would generally need to consult his/her will & financial advisor twice before donating a sum of Rs 50k. and ideally the doctor would do the same only at the time of tax filling season.

    but if doctor pledges to render his/her service for performing certain operation in a month on charitable basis that would indeed serve the cause more effectively & economically. as by doing so in a year he is rendering services worth Rs 6 lacs.
    Last edited: Feb 2, 2015
    gaurav_kumar likes this.
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