Section 80G Deduction

Section 80G Deduction

One of the best ways to cut taxes while also benefiting the world is to donate to a charity. There will be a section 80G deduction as a result. These must be trusts or institutions that are recognized by the law. Many of us have thought about giving to charity at some point in our life in order to support the community.

Section 80G Deduction

That you genuinely believe in and support a great cause is admirable. The government heartily supports charitable endeavours given the genuineness of this action. Tax credits for charitable contributions are provided by Section 80G of the Indian Income Tax Act. With the intention of providing tax benefits to those who engage in charitable endeavours, Section 80G of the Income Tax Act focuses primarily on charitable contributions. Tax benefits for donations to certain funds or organisations are described in this section. When filing an income tax return, an individual may deduct donations made to a recognised charity.

Section 80G

Donations to specific relief funds and charities are deductible under Section 80G of the Income Tax Act. However, not all contributions are tax-deductible under Section 80G. Only contributions to the specified fund will be deducted. An individual, corporation, corporation, or other individual taxpayers may claim this deduction.

What Is The Payment Method? 

This deduction is only available if the gift is made in the form of a check, draught, or cash. Section 80G does not apply to in-kind assistance such as food, supplies, clothes, and medications. Cash gifts in excess of 2,000 rupees will no longer be deductible beginning in fiscal 2017-18. Donations in excess of Rs 2,000 must be paid in kind to qualify for the Section 80G deduction. Previously, the maximum monetary gift was 10,000 rupees. Donation Amount: According to Section 80G, the different donations stated in Section 80G can be deducted up to 100% or 50%, with or without limits.

How To Claim The Deduction

To be able to claim this deduction, the following details have to be submitted in your income tax return:

  • Name of the donee
  • PAN of the donee
  • Address of the donee
  • Amount of contribution – the breakup of contribution in cash and another mode
  • The amount eligible for deduction

Donations Eligible For 50% Deduction Without Qualifying Limit

  • Jawaharlal Nehru Memorial Fund
  • Prime Minister’s Drought Relief Fund
  • Indira Gandhi Memorial Trust
  • Rajiv Gandhi Foundation

Donations Eligible For 100% Deduction Without Qualifying Limit

  • The Central Government established the National Defense Fund.
  • Prime Minister’s National Relief Fund
  • National Foundation for Communal Harmony
  • An approved university/educational institution of National eminence
  • Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district
  • Fund set up by a state government for the medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council or to any State Blood Transfusion Council
  • National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation, and Multiple Disabilities
  • National Sports Fund
  • National Cultural Fund
  • Fund for Technology Development and Application
  • National Children’s Fund
  • Chief Minister’s Relief Fund or Lieutenant Governor’s Relief Fund with respect to any State or Union Territory
  • The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund, Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996
  • The Maharashtra Chief Minister’s Relief Fund during October 1, 1993, and October 6, 1993
  • Chief Minister’s Earthquake Relief Fund, Maharashtra
  • Any fund set up by the State Government of Gujarat exclusively for providing relief to the victims of the earthquake in Gujarat
  • Any trust, institution or fund to which Section 80G(5C) applies for providing relief to the victims of the earthquake in Gujarat (contribution made between January 26, 2001, and September 30, 2001)
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions – India) Fund
  • Swachh Bharat Kosh (applicable from FY 2014-15)
  • Clean Ganga Fund (applicable from FY 2014-15)
  • National Fund for Control of Drug Abuse (applicable from FY 2015-16)  

Donations Are Deductible At 100% Up To 10% Of Adjusted Gross Income

donation to the federal government, local governments, institutions, or unions that are entitled to do so in order to advance family planning

The Association for India in India or another organisation informed the association or organisation It was founded in India to create the necessary facilities for sports and competitions to be held there.