Uploaded on Feb 20, 2023
Section 80g of the Income Tax Act of 1961 grants tax exemptions and deductions to individuals donating money to charitable institutions. This article will detail the benefits of Section 80g, what types of donations are eligible, how to apply for benefits, tax exemption and deduction limits, documentation required and tips and advice on how you can use section 80g to save on taxes.
80gga
Understanding charity contributions: a guide to section 80g
Contributing to charity is a great way to make a difference in
the world and help those who need it most. However,
understanding what qualifies as a charitable donation, as well
as how to maximize the benefit of your contributions, can be
confusing. Section 80g is one of the most important pieces of
legislation concerning charitable donations in India. Here we
provide an overview on understanding how section 80g works
and how it can help you maximize your charitable donations.
Section 80g is part of the income tax act 1961 and allows
donors to claim tax deductions for their eligible contributions.
Section 80g of income tax act
• Section 80g of the income tax act provides tax deductions for
individuals who make donations to certain approved organisations
and funds. This section is designed to encourage charitable giving,
enabling taxpayers to reduce their taxable income. It applies only
to specified donations made in India and those made out of net
taxable income. The eligible organisations must be approved by
the central government or authorised local authorities, and listed
in section 80g(5). The list includes institutions like the prime
minister’s national relief fund, national defence fund, Jawaharlal
Nehru memorial fund, state relief funds etc. Donations may also
be made directly to a university or educational institution in India
approved by the ugc or any recognised medical institute as
mentioned under section 10(23c).
CRYSTAL VISION
Section 80g
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