If you are donating to an NGO or an organization engaged in any charitable work, then you can claim tax deduction on it under Section 80G of the IT Act.
Tax Deduction: A citizen performs his duty by donating to various charitable and charitable organizations in the country, but to promote this, the government also gives tax exemption to taxpayers. Such provisions have been made in the Income Tax Act, in which you get tax exemption even on donations. That is, if you are donating to an NGO or an organization engaged in any charitable work, then you can claim tax deduction on it under Section 80G of the IT Act. 50 to 100 percent of the donation amount can be claimed, but certain conditions apply, under which exemption can be claimed.
Who can claim deduction under section 80G?
Under section 80G, every Indian citizen or NRI can claim tax exemption, who has invested in a fund, institution or organization estimated by the government. Individuals, companies, firms, Hindu Undivided Families, NRIs, and others can get tax exemption under this section. However, this tax exemption is still available only in the old tax regime, such exemption is not available in the new tax regime.
How to pay for tax exemption?
Remember that you will be able to claim tax exemption on donations only if your payment mode is cheque, demand draft, donation in cash below Rs.2,000. If you are donating above Rs 2,000, then you should do it through other available payment modes other than cash, only then you will be able to claim deduction under 80G.
Tax exemption is available in different categories?
In some of the funds available for tax exemption under 80G, you get 50 to 100% deduction without any maximum limit. Whereas on some you get 50 to 100 percent deduction with a maximum limit.
The organizations to which you get tax exemption for donating are as follows-
- Donations to certain approved funds, trusts, charitable institutions/donations for renovation or repair of notified temples etc. [The amount of deduction is 50 per cent of the net qualifying amount].
- National Defense Fund,
- Prime Minister’s National Relief Fund,
- Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)
- Prime Minister’s Armenia Earthquake Relief Fund,
- Africa (Public Contribution – India) Fund,
- 100 percent of the National Children’s Deserving Charities Fund (from 1-4-2014),
- Government or approved association to promote family planning,
- Universities and approved educational institutions of national repute,
- National Foundation for Communal Harmony,
- Chief Minister Earthquake Relief Fund (Maharashtra),
- District Literacy Committee,
- National or State Blood Transfusion Council,
- Fund set up by the State Government to provide medical relief to the poor,
- Army Central Welfare Fund,
- Indian Navy Benevolent Fund and Air Force Central Welfare Fund,
- Andhra Pradesh Chief Minister’s Cyclone Relief Fund,
- National Illness Relief Fund,
- Chief Minister’s Relief Fund of any State or Union Territory,
- National Sports Fund,
- National Cultural Fund,
- Fund for Technology Development and Application,
- Fund or the Lieutenant Governor’s Relief Fund in relation to the Indian Olympic Association, etc.,
- Fund specifically set up by the Government of Gujarat to provide relief to the victims of the earthquake in Gujarat.
- National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities,
- And amount paid between 26-1-2001 and 30-9-2001 to any eligible trust, institution or fund for Gujarat earthquake victims
- To provide relief to the Swachh Bharat Kosh and the Clean Ganga Fund (from assessment year 2015-16) and the National Fund for the Control of Drug Abuse (from assessment year 2016-17) [subject to certain conditions and limits]
