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In Section 80G of the Income Tax, contributions delivered to specified relief funds and charitable institutions can be availed as a deduction. Only the donations that are signed for the said funds will be entitled to a deduction. Any assessee, individual, company, firm, or any other person can avail of the deduction.
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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.
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50% Deduction without Restriction: Some donations are liable to deduct 50% of the amount donated. The donations to the PM drought relief fund lie in this 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 concerning the ceiling of 10% of the adjustment GTI of the assessee will be liable when the donation is furnished to the government or any approved authority institution, or association to promote family planning. The contribution of the Indian Olympic Association or any other sports organisation or institution will be liable for the deduction. But it is only for the available organisations.
50% Deduction with Restriction: A 50% deduction is directed to a ceiling of 10% of the tuned GTI of the taxpayer is liable for doing the charity, the donations are built 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 a 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.
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The donations furnished will not be permitted from the Fiscal year 2018-19 if they are made in cash exceeding Rs 2000. Beneath section 80G, donations exceeding Rs 2,000 should be furnished in any mode other than cash to qualify as a deduction.
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 of the trust, the registration number of the trust, the name of the donor, and the amount donated, written in words and figures. During the time of furnishing the Income Tax Return to avail of the deduction, this information is required.
