Donations made to Council for Academic and Performance Appraisal(CAPA) that are approved under Section 80G of the Income Tax Act, 1961, are eligible for tax deductions. Here’s a detailed guide on how this works:

Eligibility:

1. Donors: Any taxpayer (individuals, companies, firms, etc.) can claim deductions.
2. 80G: CAPA is registered and have a valid 80G certificate issued by the Income Tax Department.

Deductions:

1. Percentage of Donation:
   • 100% or 50% of the donation amount, depending on the type of NGO.
2. With or Without Qualifying Limit:
   • Without Qualifying Limit: Some donations are eligible for deduction without any upper limit.
   • With Qualifying Limit: Some donations are eligible for deduction subject to a limit of 10% of the adjusted gross total income.

Types of Eligible NGOs and Deductions:

1. 100% Deduction Without Qualifying Limit:

   • Prime Minister’s National Relief Fund
   • National Defence Fund
   • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund
   • Any other fund notified by the government

2. 50% Deduction Without Qualifying Limit:

   • Certain charitable institutions and funds specified by the government.

3. 100% Deduction Subject to 10% of Adjusted Gross Total Income:

   • Government or any approved local authority, institution, or association for promoting family planning

4. 50% Deduction Subject to 10% of Adjusted Gross Total Income:

   • Other charitable institutions that meet the conditions mentioned in Section 80G(5)
   • Any local authority to be used for charitable purposes, excluding family planning

Conditions for Claiming Deduction:

1. Proof of Donation: A stamped receipt from the NGO, which should include the name, address, PAN of the NGO, the amount donated, and the registration number of the NGO under Section 80G.
2. Mode of Donation: Donations should be made via cheque, draft, or digital modes. Cash donations exceeding Rs 2,000 do not qualify for the tax deduction.
3. Validity of 80G Certificate: Ensure that the NGO’s 80G certificate is valid at the time of donation.

Steps to Claim Deduction:

1. Collect the Receipt: Obtain a proper receipt from the NGO.
2. Check Eligibility: Verify if the NGO is eligible for 80G benefits and the percentage of deduction applicable.
3. Compute Gross Total Income: Calculate your gross total income.
4. Adjust for Other Deductions: Deduct other eligible deductions under different sections (like 80C, 80D).
5. Calculate Eligible Donation: Determine the eligible donation amount under Section 80G.
6. Fill in the ITR Form: Enter the eligible donation amount in your Income Tax Return (ITR) form under Section 80G.

Documentation:

• Receipt from NGO: It should have all the necessary details.
• 80G Certificate Copy: If required during assessment.

Practical Example:

• Suppose your gross total income is Rs 10,00,000.
• You donated Rs 50,000 to an NGO that qualifies for a 50% deduction without any qualifying limit.
• Your eligible deduction under Section 80G would be Rs 25,000.

Always consult with a tax advisor or professional to ensure compliance and to maximize your tax benefits.