WHAT I CALL THIS ?

This query is : Resolved

AMIT (Querist)
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21 July 2010
MR. A GIVE RS.15 LACS FOR >

A. DEVELOPMENT OF COMMUNITY WALL

B. TO BEGGAR

C. TO A CHARITABLE INSTITUTION

D. FOR ADDMISSION IN SCHOOL

WHAT IT IS CALLED A CHARITY, DONATION OR CONTRIBUTION IN RESPECT OF EACH POINT ??

PLEASE GIVE ANSWER POINT WISE AND REASON

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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21 July 2010 A- Development of Community wall - If community is registered u/s 80G then donation or contribution. If not registered then charity and no benefit under Income Tax Act.

B- To begger - Charity and no benefit under Income Tax Act.

C- To charitable Institution- As they are registered under Section 80G so it is contribution or donation.

D- For Admission in School- Whatever you pay as donation is illegal and this is neither charity or donations.

C-

AMIT

AMIT (Querist)
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22 July 2010 if a charitable institution is not registered under 80 G

A. the amt. we provide will be CONTRIBUTION OR CHARITY ??

B. WHAT IS THE DIFFERENCE BETWEEN CONTRIBUTION AND DONATION ??

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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03 August 2025 Great questions! Let me clarify these terms and your points one by one with reasons:

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### What to Call Each Payment: Charity, Donation, or Contribution?

| Point | Description | What is it Called? | Reason |
| ----- | ----------------------------- | ------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| A | Development of Community Wall | **Donation or Contribution** (if registered under Section 80G) | If the community or institution is registered under Section 80G, the amount qualifies as donation/contribution eligible for tax benefits. If not registered, it is charity but no tax benefit. |
| B | To Beggar | **Charity** | Direct help to an individual; not a donation or contribution to a registered institution. No tax benefits. |
| C | To Charitable Institution | **Donation or Contribution** | If the institution is registered under Section 80G, payments are considered donations/contributions eligible for tax deductions. |
| D | For Admission in School | Neither Charity nor Donation (often considered an illegal donation) | Payments made for admission fees or donations as a condition for admission are generally **not recognized as charitable donations** and may be illegal or against regulations. |

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### If Charitable Institution is NOT Registered under Section 80G:

* **A. What is the amount called?**
It is considered **Charity**, but not eligible as a **Donation** for tax deduction purposes.

* **B. Difference Between Contribution and Donation:**

| Term | Meaning | Key Difference |
| ---------------- | -------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- |
| **Donation** | Voluntary gift given to a registered charitable institution (usually eligible for tax benefits under Section 80G). | Donations are eligible for tax deduction if given to registered institutions. |
| **Contribution** | Can be similar to donation but sometimes used for membership fees or payments to unregistered entities or specific causes. | May or may not be eligible for tax deduction; more general term. |

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### Summary:

* **Charity:** Voluntary help given directly (e.g., to a beggar), usually no tax benefits.
* **Donation:** Gift to a registered charitable institution, eligible for tax benefits.
* **Contribution:** Broader term; may refer to donations or payments to an institution but depends on registration and context.

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If you want, I can help prepare a detailed note or explain the tax implications of each!

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