Save tax on donations made: Tax benefits under Section 80G of Income Tax Act
1.Section 80G allows taxpayers to claim deduction for donations to eligible fund, institution or trust, to encourage philanthropy.2.All taxpayer categories are eligible to claim deduction under this Section if they have opted for the old tax regime.
3.Deduction can be of four types: 100% or 50%, without any maximum limit, or subject to a maximum limit.
4.Donations can be made via cash, cheque or electronic modes. However, cash donations over Rs.2,000 are not eligible for deduction.
5.Form 10BE is required as evidence to support the deduction to be claimed while filing the ITR.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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This story originally appeared on: India Times - Author:Faqs of Insurances
