Income Tax Deductions Under Section 80G

The sum offered by an individual is allowed to be claimed as a deduction under Section 80G, at the time of filing his IT return.

To encourage people to make donations, the Indian government allows for Income Tax deductions under Section 80G for the sum which has been donated. The sum offered by an individual is allowed to be claimed as a deduction under Section 80G, at the time of filing his IT return.

This deduction for contribution can be claimed by any taxpayer (whether individual, company, etc), regardless of the fact whether he is making money from his salary or business. The deduction offered under Section 80G is over and beyond the deduction of Rs. 1 lakh, permissible under Section 80C. Let's try to be more familiar with deduction made by making donations under 80G.

Donations made by an assesse are legal to be claimed as deduction under Section 80G in every case. But, where donation has been made in kind, for example food, clothes, medication etc, these are not entitled for deductions. To claim this deduction, the donor is required to provide the proof of payment. A stamped acknowledgment is given by the recipient trust, information of which should be specified by the taxpayer, at the time of filing his IT return.

The acknowledgment must mention the following info:

• Name as well as address of the trust / NGO

• Name of the donor

• Sum offered (mentioned in words as well as numbers)

• Registration number of the trust, as given by the IT department u/s 80G with its validity

You must keep all the records in good order - the receipt given by the charitable organization stating the donation is important. The rate of deduction will be either 100% or 50% (which can be restricted more to 10% of entire earnings, according to tax provisions for the purpose) of the qualifying amount, depending on the selected organization.

While filing returns this year, you will be required to mention certain extra details like the name of the organization, its PAN details, and the sum donated.

Social Work Organizations involved in looking after old age people offer services which enrich their lives. They believe in propagating active ageing. Through their several programs, they try to instill a sense of self-respect among elders and encourage them to stay active in later life.

Author writes about Income Tax deduction benefits Donation under 80g. For more information about online Donation visit - http://www.helpageindia.org