India/ 5.1 General legislation  

5.1.5 Tax laws

There are no specific legislations that provide for tax incentives although cultural institutions that are registered as charitable trusts can claim tax deduction for donations to certain prescribed funds under Section 80G of the Income Tax Act, 1961.

The deduction to certain funds and charitable institutions is allowed to any taxpayer, on the qualifying amount that is limited to 10% of gross total income of the assessee reduced by income deducted under any section. Also, certain donations are eligible for 100% deduction and certain donations (including for those investing in acquiring art) are eligible for 50% deduction.

The National Culture Fund remains a specific exception, since it was set up under the Charitable Endowments Act 1890, and donations to it are eligible for 100% tax deduction under Section 80 G(2)(iii hh) of the Income Tax Act, 1961.

Chapter published: 22-04-2014