Lok Sabha Question No. 2089 (UNSTARRED), answered on 2021-08-02
Subject: Tax exemption on Donations
Ministry: FINANCE
Asked by: Raghu Ramakrishna Raju Kanumuru, Y. S. Avinash Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED  QUESTION NO. 2089

TO BE ANSWERED ON MONDAY 2 ND  AUGUST, 2021 SRAVANA 11, 1943 (SAKA)

## TAX EXEMPTION ON DONATIONS

## 2089. SHRI KANUMURU RAGHU RAMA KRISHNA RAJU: SHRI Y.S. AVINASH REDDY:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has any plan of extending 100 per cent tax exemption on the donations of Non-Profitable Hospital Organisations;
- (b) if so, the details thereof;
- (c) whether the NITI Aayog has recommended for implementation of the same;
- (d) if so, the details thereof; and
- (e) the stand of the Government in this regard?

## ANSWER

## THE MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) There is no such proposal under consideration.
- (b) Does not arise.
- (c) NITI Aayog has carried out study 'Not-for-Profit Hospital Model in India' during the year 2020-21. The report was released on 29 th June  2021. One of the proposed policy intervention for promoting the Not for profit hospital section recommendation from this study is 100% exemption for donations (section 80G) (currently 50%).
- (d) The study was carried out between October 2020 till June 2021 covering 11 prominent not-for-profit hospital across the country. The study provides insights into the operation model of not-for-profit hospitals. It presents research-based finding on such hospitals categorized under the ownership and premise of service-and makes subsequent comparisons with private hospitals and health schemes of the Union government.

NITI Aayog  has been extensively studying the private-sector healthcare-delivery landscape in the country. While there exists adequate information on for-profit healthcare providers and institutions, there is a dearth of reliable and structured information on their not-for-profit counterparts, known for their tireless service in making quality healthcare accessible and affordable to everyone.

The  not-for-profit  hospital  sector  provides  not  only  curative  but  also  preventive  health care.  It  links  healthcare  with  social  reform,  community  engagement,  and  education.  It uses  government  resources  and  grants  to  provide  cost-effective  healthcare  to  people without being concerned about profits. However, over the years, this sector has remained understudied.

The  study  discusses  in  detail  the  cost-containment  strategies  implemented  by  not-forprofit hospitals. It seeks to understand the challenges that burden the operations of these institutions and hinder their growth.

The  report  proposes  short-and  long-term  policy  interventions-such  as  developing criteria  to  identify  these  hospitals,  ranking  them  through  a  performance  index,  and promoting top hospitals for practicing philanthropy, among others. It also highlights the need to  use  the  expertise  of  these  hospitals  in  managing  human  resources  with  limited finance in remote areas.

- (e) Currently,  there  is  no  proposal  under  consideration  to  grant  100%  exemption  for donations to Non Profitable Hospital Organisation.

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