Understand the donation tax deduction limit.

 The thought of giving to charity and doing our bit for society may have crossed our minds on several occasions. It is a laudable gesture to donate to a cause that one sincerely believes in to help make a difference. Given the grandeur of this gesture, the Indian government extends its full support to numerous philanthropic services. Section 80G of the Indian Income Tax Act, 1961 concedes a tax deduction on contributions/donations made to any charitable fund or organization. However, it is crucial to note that there is a donation tax deduction limit; not all donations qualify for 100% tax deductions, whereas some are restricted to 50% of the amount donated. The designated list of such organizations is rendered in Section 80G of the Income Tax Act.



Section 80G of the Income Tax Act


Contributions made to certain relief funds and charitable institutions have a donation tax deduction limit, which can be claimed as an income tax deduction under Section 80G. This income tax deduction can be claimed by any taxpayer – individuals, businesses, or firms.


Mode of payments accepted during donations


A donation tax deduction can only be availed when the donation has been done through a cheque, draft and/or cash. Wherein cash donations are involved, the deduction is not allowed for amounts exceeding INR 10,000. Additionally, other material offerings such as food, clothes, medicines etc. do not qualify for income tax deduction under Section 80G.

 

It is critical for all taxpayers to note that from FY 2017-18 onwards, any donations made in cash that exceeds INR 2,000 will not be acknowledged for an income tax deduction. All donations above INR 2,000 should be made in any mode apart from cash to qualify as a income tax deduction.



Claim the donation tax deduction


One must present the evidence of donation given by the charitable trust/entity as a substantiation of the contribution made. It is also important to ensure that this proof/receipt includes the name, address, PAN card number, registration number of the trust, name of the donor and amount contributed, written in figures and words; these details are important while filing taxes.

 

Committed to uplifting the downtrodden, Save the Children is present in 80 countries internationally, working to make a difference in the lives of underprivileged children, every day. Save the Children runs solely on donations to sustain its projects and continues setting up many more, which is why a person’s support is vital. Any donation made by you – one-time or monthly, will be utilized by the NGO to plan and implement projects that help benefit the disadvantaged children of our nation. This donation could, in turn, help you as well.


Did you know that all the donations made to Save the Children India are eligible for tax exemption under Section 80G of the Income Tax Act, 1961? For all the information on the donation tax deduction limit.

Comments

Post a Comment

Popular posts from this blog

Come, protect the children of our nation with Save the Children.

  Any form of brutality has long-lasting repercussions on the general development of a child, resulting in potential harm to the child’s health, daily existence, growth, and honor. According to reports from a government-commissioned examination, 53% of children face some form of abuse in India. Additionally, the National Crime Records Bureau reports that the number of children rape and murder cases increase every year. This is why the child protection policy in India needs to be reinforced thoroughly leaving no stone unturned. Growing convolutions of life along with changes in the socio-economic condition of the society often lead to children being exposed to various forms of abuse. Most times, owing to the child’s innocence and state of vulnerability, they do not understand that they have been mistreated or have been taken advantage of. Child abuse, thus, is a violation of a child’s basic human rights. They need to be protected through the child protection policy in India . The e
Read more

Donate Now For A Cause - Your Contribution Matters

  Whether you are an individual contributor or a business contributor, your contribution matters, you can donate anywhere for any cause, and it entirely depends upon you. Why Donation? There are many places where poverty, rural settlement, infrastructure, development, and education systems are lagging. There your donation plays a significant role. If you donate, you are presenting your amount to watch one life. Some of the Other individuals will have a smile on their faces. Yes, if you can donate and are willing to do so, you can save a life rather than keep your Nation. You can also contribute to the donation with the help of an NGO, i.e., Non- Governmental Organisations. NGO have the whole and sole donation amount received from every individual. You can also contribute with the help of NGOs because they are the real heroes who work for the cause and use it in their development. Nowadays, NGOs are everywhere. Things Where NGOs Utilise Your Amount ●      First of all, you
Read more

Change your perspective.

There are people who live lavishly on the one hand. On the other hand, there are people who cannot even afford the basics of life. They do not have a place to live, food to eat, or clothes to wear. They lack basic necessities, are fighting for their lives every day, and can't meet their basic needs. To help poor and needy is a noble endeavour. You strengthen their dependency by giving more to poor and needy people. Giving them the chance or opportunity will result in an effective and long-lasting improvement in their lives.  Following are the few ways to help poor and needy people: Bringing moral consolation to the poor is an effective way to help them. It is more effective than just giving them money. The ability to improve their condition on their own would increase their self-esteem and allow them to overcome barriers they face every day. One can raise awareness and create connections to charity organizations and community centres that a
Read more