Tax Exemption Rules: To avail tax exemption under Income Tax Act 80G, you will have to upload the certificate of receipt of donation issued by the concerned institution while filing the income tax return. Without this, tax exemption will not be available.
Tax Exemption Rules: If you donate to any charitable institution or religious institution and NGOs, you can avail tax exemption under Income Tax Act 80G. For this, you will have to upload the certificate of receipt of donation issued by the concerned institution while filing income tax return. Without this, tax exemption will not be available. It is also worth noting that 50 to 100 percent tax exemption can be availed according to the categories of institutions.
Have to give 10BE certificate
According to Income Tax rules, any charitable or religious institution or NGO has to give information about donations received during the entire financial year to the Income Tax Department. Also, the person making donation has to issue Form 10BE certificate. With this, the Income Tax Department ensures whether the donations received by the organization and the tax exemption claimed by the income tax payer matches or not. Hence Form 10BE certificate is required as proof of tax exemption while filing ITR.
No deduction for cash donation
Taxpayers can claim tax exemption for amounts donated in cash, check or online. However, exemption cannot be claimed on cash donations exceeding Rs 2,000. The Income Tax Department allows exemption only for check or online payment.
Benefits in the old tax regime only: Tax exemption on the donation amount can be claimed only under the old tax regime. Therefore, income taxpayers will have to opt for this system at the beginning of the financial year itself. Will not be able to avail this deduction in the new tax system.
These are the details to be provided to the Income Tax Department: Form 10BE can be filed electronically through Electronic Verification Code (EVC) or digital signature. It is mandatory to have the name, address, PAN number and Aadhaar number of the donor in the form. Besides, it is also necessary to have the registration number and stamp of the concerned institution. The form must be filed on or before May 31 of the financial year in which the donation is made.
100 and 50 percent tax exemption: The Income Tax Department has divided trusts, institutions into categories to claim 100 or 50 percent tax exemption. A tax exemption of 50 percent can be availed on donating to any religious institution or charitable institution. At the same time, for a government institution or charitable institution notified by the government related to social work or social welfare, this limit is 100 percent.
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