How Donations Made for Charitable Reasons benefit you in Income Tax Deduction?
There is a tax deduction offered for donations made by an individual for charitable reasons. Though, people are quite familiar with this fact; but few people have taken advantage of this route. Every individual should look carefully at the details and try and benefit from the chance that is offered to them. Here are some points that are important in the entire situation.
Additional Deduction :- The usual deduction that is claimed for sums offered for charitable purposes comes under Section 80G of the IT Act. Along with this there is also one more Section 80GGA where contributions made for scientific study or rural development receives an exemption. The major thing here is that the areas for demanding the benefit are very specific and is not indeed as broad based as that observed in case of charitable contributions.
How to Get the Benefit?
In order that a person gets the benefit of the deduction, the donation has to be given to an authorized research association or organization to be used for scientific research as well as rural development. A contribution can moreover be made for the purpose of an authorized project or scheme under Section 35AC or for the purpose of the notified National Fund for Rural Development or notified National Urban Poverty Eradication Fund. This evidently is an extended list of the areas where the benefit would be offered and therefore this should be considered.
Amount :- The amount that is offered as the deduction is also important as this will decide the actual amount that would be deductible. In actual terms, entire amount would be eligible. E.g. if an individual has made a contribution of Rs 50,000 then the whole sum would be entitled for the deduction.
To make the most of this provision, people donate for various causes, in order to help people and to get donation tax exemption in return. Many people make donation for elderly to make them live their life with dignity and respect.
Nowadays, you can donate online, too. It is the most cost-efficient channel of gathering funds. It's a very simple as well as safe method.
You can donate by using your credit/ debit card, online. You will receive an immediate confirmation of your contribution through an email with a donation number and an instant receipt for the donation made.
So, now when you think of helping people, think of donating money for a good cause. Besides, now you can donate online from the ease of your home with the benefit of receiving income tax exemption, as well.
Additional Deduction :- The usual deduction that is claimed for sums offered for charitable purposes comes under Section 80G of the IT Act. Along with this there is also one more Section 80GGA where contributions made for scientific study or rural development receives an exemption. The major thing here is that the areas for demanding the benefit are very specific and is not indeed as broad based as that observed in case of charitable contributions.
How to Get the Benefit?
In order that a person gets the benefit of the deduction, the donation has to be given to an authorized research association or organization to be used for scientific research as well as rural development. A contribution can moreover be made for the purpose of an authorized project or scheme under Section 35AC or for the purpose of the notified National Fund for Rural Development or notified National Urban Poverty Eradication Fund. This evidently is an extended list of the areas where the benefit would be offered and therefore this should be considered.
Amount :- The amount that is offered as the deduction is also important as this will decide the actual amount that would be deductible. In actual terms, entire amount would be eligible. E.g. if an individual has made a contribution of Rs 50,000 then the whole sum would be entitled for the deduction.
To make the most of this provision, people donate for various causes, in order to help people and to get donation tax exemption in return. Many people make donation for elderly to make them live their life with dignity and respect.
Nowadays, you can donate online, too. It is the most cost-efficient channel of gathering funds. It's a very simple as well as safe method.
You can donate by using your credit/ debit card, online. You will receive an immediate confirmation of your contribution through an email with a donation number and an instant receipt for the donation made.
So, now when you think of helping people, think of donating money for a good cause. Besides, now you can donate online from the ease of your home with the benefit of receiving income tax exemption, as well.
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Donation visit - http://www.helpageindia.org
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