Save tax on donations made: Tax benefits under Section 80G of Income Tax Act

March 25, 2024

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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.

Maximize Tax Savings on Charitable Donations: Exploring Section 80G Benefits in Income Tax Law

1. Section 80G permits taxpayers to receive deduction for donations made to qualified fund, institution, or trust in order to promote philanthropy.

2. All categories of taxpayers are eligible to receive deduction under this Section if they have chosen the old tax regime.

3. Deduction can fall into four categories: 100% or 50%, with no maximum limit, or subject to a maximum limit.

4. Donations can be made through cash, cheque, or electronic means. However, cash donations exceeding Rs.2,000 are not eligible for deduction.

5. Form 10BE is necessary as proof to support the deduction claimed while submitting the ITR.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.