Section 80G(5)(ii) of the Income Tax Act
Income-tax Act, 2025: s.133
Section 80G(5)(ii) falls under section 80G of the Income-tax Act, 1961, which corresponds to section 133 (Deduction in respect of donations to certain funds, charitable institutions, etc) of the Income-tax Act, 2025.
Read section 133 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 80G(5)(ii) is DIT (Exemption) v. Khar Gymkhana (385 ITR 162), cited in 27 of the 222 judgments on BharatTax that turn on this section.
Leading authorities on Section 80G(5)(ii)
The cancellation of registration under section 12AA(3) is limited to circumstances specified in the section. Income and application of funds issues are matters of assessment, not grounds for cancellation under section 12AA(3).
An institution or fund is deemed to be one to which section 80G applies even if it incurs expenditure of a religious nature not exceeding five per cent. of its total income, overriding Explanation 3 to section 80G(5)(ii).
The issue before the Tribunal concerns the applicability of amended provisions under Section 80G(5) of the Income Tax Act. Assessees are permitted to file fresh applications under the amended provisions.
An institution is disentitled from approval under section 80G(5) if its trust deed contains even a single religious object, as it is not established wholly for charitable purposes. This applies even if the trust also has charitable objects or if section 80G(5B) is considered.
