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Learn Income Tax Benefits from Donations Under Section 80G

In the last quarter of 2020/21, you can see the method to review your tax savings and take steps if required to sum that additional money.

Tax Benefits Under Section 80G from Donations

Below section 80G of the income tax, contributions delivered to specified relief funds and charitable institutions can be availed as a deduction. Only the donations which are signed for the said funds will be entitled as a deduction. Any assessee individuals, company, firm, or any other person can avail of the deduction.

The Deductions Can be Claimed on the Donation Amount Under Section 80G

100% Deduction without Restriction: this category of deduction gives the maximum tax advantage to the assessee. The assessee can avail of a deduction on the donation amount. The donations that come in this class are the National Defence Fund, the Prime Minister’s National Relief Fund, and the National Children’s Fund.

Read Also: Tax Saving Tips for Government Employees’ Income Get to know income tax saving tips for the Indian government employees as per Income tax act. Also, we have highlighted income tax rates for the current FY. Read more

50% Deduction without Restriction: some donations are liable to deduct 50% of the amount donated. The donations to the PM drought relief fund lies in the category. Hence the deduction could be availed for 50% of the donation excluding any threshold on the upper limit.

100% Deduction with Restriction: a 100% deduction with respect to the ceiling of 10% of adjustment GTI of the assessee will be liable when the donation furnished to the government or any approved authority institution, or association with the intention of promoting family planning. The contribution for the Indian Olympic association or the other sports organization or institution will be liable for the deduction. But it is only for the available organizations.

50% Deduction with Restriction: 50% deduction directed to a ceiling of 10% of tuned GTI of the taxpayer is liable for doing the charity the donations build to the government or any authority excluding the promotion of family planning, renovation or repair of any notified place of worship, etc.

Payment Method to Claim Benefits Under Section 80G

This claim to this deduction will be availed when the contribution has been furnished through the cheque, cash, or draft. However, if the donations for cash are more than Rs 10000 then no deduction will be permitted for the same. under section 80G the contribution towards kindness such as food, material, clothes, medicines, etc. is not suitable for the deduction. The donations furnished will not be permitted from the Fiscal year 2018-19 if it is done in cash exceeding Rs 2000. Beneath section 80G donations exceeds Rs 2,000 should be furnished in any mode rather than cash so as to qualify as a deduction.

Contribution Furnished for Pandemic Relief

If you lie in the category of the person who has given donation for the national fund with major concern to deal with difficult or the stressed situation such as a covid-19 pandemic, a public charitable trust beneath the name of Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM Cares Fund) has been set up. A 100% deduction for the donations to PM cares fund will be approved. Moreover, the before-mentioned donation will also allow CSR expenditure for the Companies Act, 2013.

Mandatory Documents To Avail Income Tax Benefits Under Section 80G

A standard receipt given by the trustee entitled as proof of the donation is to be given for claiming the deduction. One should be assured that the receipt must include the name, address, PAN number Get to know the easy steps about filling Permanent Account Number (PAN) card application through online. Also know the list of mandatory documents. Read more of the trust, the registration number of the trust, name of the donor, and amount donated, written in words and figures. During the time of furnishing the Income Tax Return to avail the deduction, this information is to be required.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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