Tax Exemption – Section 80G Frequently Asked Questions
Get answers related to Income Tax Exemption under Section 80G
Taxpayers who make donations to relief funds, NGO and other charitable organizations are eligible to get income tax exemption under Section 80G of Income Tax Act,1961.
Section 80G of the Indian Income Tax Act allows a donor for a tax deduction on his taxable income for the donations made to charitable organization.
Shrimati Sadhana Singh Foundation is registered under Section 80(G) of the Income Tax Act and whosoever donates to Shrimati Sadhana Singh Foundation is eligible to get a 50% tax deduction on the amount paid by them
Donations made to Shrimati Sadhana Singh Foundation are eligible for 50% deductions. For example, you are a taxpayer and has a taxable income of Rs. 1,00,000 per year and you make a donation of Rs. 10,000. Your taxable income will now be Rs. 95,000 (1,00,000- 50% of donation).
Tax deduction can only be claimed when the contribution is made via a cheque, draft, or cash.
As per the amendment to Section 80G, any donations made in cash of more than Rs.2,000 will not be allowed for tax deduction.Use any mode of payment other than cash (Cheque,Draft,Online) to be eligible to get tax deductions under section 80G.
Donations made in the form of clothes, food, medicines, etc. not eligible under Section 80G
Deduction under Section 80g of income tax can be claimed by any taxpayer whether she or he runs her or his own business or is salaried.When claiming the deduction, the individual claiming the deduction must submit the following details-
- Receipt issued by trust/charity which receives a donation.
- Receipt should contains details like Name, Address, PAN of the trust, amount donated and name of donor.
- Registration number of the trust, as provided by the Income Tax Department along with its validity