CA Amit Ranjan explains that in some cases, the benefit of tax exemption is available only on donating a maximum amount of 10 percent of the total income. However, this limit of 10 per cent is not there for donations to some organizations.
Income Tax Return Deadline: Due to the Corona epidemic, the Income Tax Department has extended the deadline for filing tax returns for the financial year 2020-21. This has not only brought great relief to the individual taxpayers, but the businessmen facing financial problems in the current environment are also feeling relief. The deadline for individual taxpayers to file ITR-1 or ITR 4 has been extended from July 31 to October 31.
At the same time, for companies and firms whose accounts are required to be audited, this deadline has been extended from October 31 to November 30. Filing of returns has become easy on the new website of Income Tax and people are now filing returns on their own. Especially those filing ITR-1 or ITR 4 are not feeling the need of professionals. However, they are getting confused at some places to take advantage of deductions.
As many taxpayers remain confused about the amount donated. Experts also say that charity is considered a good trend from the point of view of humanity. Kabir has also been inspired about giving donations, “The bird took its beak full, did not give neer to the river, did not give money to charity, said Saint Kabir”. That is, the reduction of water from the beak of a bird in the river will not make any difference, in the same way money is not going to decrease by donating.
Donated online but haven’t received the receipt?
Many people donate to organizations online. However, there is a confusion in the minds of people regarding the receipt, if they do not have the receipt, will they get tax exemption! In this regard, CA Amit Ranjan says that even if you have donated online, but you do not have a receipt, then there is no problem.
There is proof of transfer of money from your account to the institution’s account. The important thing is that the organization to which you have donated should be registered under section 12A. Along with this, one should be eligible to take donation under section 80G. On the basis of these proofs, you can claim tax exemption under 80G.
How much discount do you get?
CA Amit Ranjan explains that in some cases, the benefit of tax exemption is available only on donating a maximum amount of 10 percent of the total income. However, this limit of 10 per cent is not there for donations to some organizations. For example, suppose your annual income is 5 lakhs, then you can take tax exemption only on donations up to 50 thousand rupees. You can donate even if you want to donate more, but tax exemption under section 80G will be available only on 10 percent of the amount. However, regarding the exemption from donation, he says that in some cases 50 percent tax exemption is available, in some cases it is up to 100 percent.
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