Section 80G of the Income Tax Act, 1961 provides tax exemptions to individuals and entities making donations to eligible charitable institutions, organizations, or funds. This section encourages philanthropy by offering tax relief to donors, making charitable giving more attractive.

Who Can Benefit from 80G?

1. Individuals:

   • Taxpayers (both salaried and business) can claim deductions for donations made to eligible charitable organizations.

2. Businesses and Companies:

   • Companies and firms making donations to approved charities can also claim deductions under this section.

Eligible Donations Under Section 80G

• Donations made to registered charitable organizations that are recognized by the Income Tax Department.
• Donations to National Relief Funds, Prime Minister’s National Relief Fund, and other government-approved charitable institutions.
• Donations made to trusts and foundations working for public welfare, education, and healthcare, among others.

Types of 80G Deductions

1. 100% Tax Deduction with No Cap:

   • Donations to certain organizations, such as the Prime Minister’s National Relief Fund, National Defence Fund, and specific national charitable trusts, qualify for a 100% deduction without any limit on the amount donated.

2. 50% Tax Deduction with a Cap:

   • Donations to other eligible charities or trusts are eligible for a 50% deduction, but the deduction amount may be capped based on the donor’s total income or the limit specified by the charity.

80G Certification Process

1. Eligibility for Tax Benefits:

   • To qualify for 80G benefits, donations must be made to registered organizations that hold a valid 80G certificate issued by the Income Tax Department.

2. Receipt of Donations:

   • The donor should obtain a proper receipt from the charitable organization, mentioning the donor’s name, address, donation amount, and the 80G registration number of the organization. This receipt is required for claiming the deduction during tax filing.

3. Filing Tax Returns:

   • To claim the 80G deduction, individuals and businesses must provide details of their donations when filing their Income Tax Returns (ITR). The donations will be adjusted against their taxable income, resulting in a lower tax liability.

Documents Required for Claiming 80G Deductions

• Donation Receipt: Issued by the charitable organization with the required details (name, address, donation amount, and 80G registration number).
• Income Tax Return (ITR) Form: To claim the deduction in the ITR form.
• PAN Card: To ensure proper identification and ensure that the deduction is applied to the correct individual or entity.

Key Benefits of 80G

• Tax Relief: Donors can reduce their taxable income by the amount of eligible donations made, thereby lowering their overall tax liability.
• Encourages Charitable Giving: Provides an incentive for individuals and businesses to contribute to social welfare and charitable causes.
• Social Impact: Helps channel more funds to important social causes such as education, healthcare, and disaster relief efforts.

Important Points to Note

• Donations made to foreign charities or charities not registered under the 80G Act do not qualify for tax exemptions.
• The donation amount and the deduction percentage depend on the nature of the organization and the type of donation made.

Our 80G service ensures that your donations to eligible charitable organizations qualify for tax benefits, guiding you through the documentation and filing process to help you maximize your tax savings.