ARE you aware of an 80G deduction and its significant tax benefits while supporting NGOs and their noble causes? This comprehensive guide will delve into the intricacies of Section 80G of the Income Tax Act, 1961, and how it can serve as a powerful tool for reducing your taxable income while contributing to society.
Understanding the 80G Tax Deduction
The 80G Tax Deduction is a provision under the Indian Income Tax Act, 1961, designed to provide tax relief to conscientious taxpayers while supporting charitable causes through donations to eligible NGOs. This deduction offers substantial tax exemptions to those who contribute to specified funds, institutions, or associations.
When you make donations to eligible NGOs, you become eligible for a range of tax deductions. The 80G Tax Exemption scheme is a win-win scenario, allowing you to give to a cause you care about while enjoying tax benefits. It is known for granting substantial tax exemptions to conscientious taxpayers, making it a compelling incentive to contribute to noble causes.
Who qualifies for a deduction?
All taxpayers, whether resident or non-resident, can claim deductions from their gross total income before taxes are assessed under Section 80G. This deduction can only be availed by taxpayers who have opted for the old tax regime, and those under the new tax regime cannot access its benefits.
The 80G Tax Deduction provides flexible and generous tax benefits, allowing individuals to claim deductions ranging from 50% to 100% of the amount donated. This means you can significantly reduce your tax liability while supporting the causes that matter most to you.
Donation modes and exclusions
When making a donation, you can contribute in various forms, including cash, cheque, or electronic modes. However, please note that cash donations exceeding Rs. 2,000 are not eligible for deduction under the 80G Tax Exemption. Additionally, donations made in kind are not eligible for deduction under this provision.
Documentation for Claiming Deductions
Proper documentation is key to securing the 80G Tax Deduction. To claim this tax benefit, your donation must be directed towards a fund or charitable institution that adheres to the conditions outlined in Section 80G(5) of the Income Tax Act. This includes the requirement for the recipient to submit a donation statement to the Income-tax Department. As a donor, you should also receive a Form 10BE certificate detailing the donated amount for the year. This certificate is your ticket to claiming the 80G Tax Deduction when you file your Income Tax Return (ITR).
Ensuring eligibility of institutions
The list of institutions approved by the Principal Commissioner or Commissioner of Income Tax, eligible to receive donations under Section 80G, is updated periodically by the income tax department. Therefore, it’s crucial to verify that the institution is on the approved list at the time of donating to secure the 80G Tax Deduction.
Make a difference on the Give.do
The Give platform provides an ideal avenue for individuals looking to make a positive impact. Here, you’ll find a multitude of NGOs dedicated to various causes, including supporting children, the elderly, and others in need. Your donations on the Give platform contribute to the betterment of society and allow you to maximise the benefits of the 80G Tax Deduction. By giving to these NGOs, you’re reducing your tax liability and supporting transformative work that changes lives.
The 80G Tax Deduction is a powerful tool for responsible taxpayers looking to contribute to the betterment of society while reducing their tax burden. It creates a win-win scenario, benefiting both donors and NGOs. Harness the tax-saving potential of the 80G Tax Deduction, support NGOs on the Give platform, and make a meaningful impact on the causes you care about. Explore more NGO fundraisers and make a difference while enjoying various tax saving benefits:
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Give’s mission is to “make giving bigger and better.” Give is the most trusted donation platform in India for fundraisers and crowdfunding campaigns. Through our technology solutions, we enable individuals and organisations to fundraise and donate to a cause, charity or NGO with trust and convenience. Give’s community of 2.7M+ individual donors and 300+ organisations supports 3,000+ verified nonprofits with 80G deduction and serves 15M+ people across India. Find a fundraiser today!
Give exists to alleviate poverty by enabling the world to give. Established in 2000, Give, together with its partners, is the largest and most trusted giving platform in India. Give enables individuals and organizations to raise and donate funds conveniently to any cause they care about, with offerings including crowdfunding, corporate giving, cause marketing, and philanthropy consulting. Give’s community of 2.6M+ donors supports 3,000+ verified nonprofits, serving 15M+ people across the country.
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