Section 80G of The Indian Income Tax Act - Is It For You?

Anyone who earns their salary in India and files tax returns can make a donation under 80G.
Additionally, contributions only in cash are entitled for tax benefits.

The new financial year has just begun and every salaried employee is busy submitting investment declarations or planned savings to their respective companies, to avail tax exemptions. One of the lesser known and used Indian Income Tax Act sections is 80G. This article sheds light on this particular section under the Indian IT Act.

Section 80G

Section 80G of the Indian IT Act of 1961 offers tax relief to Indian citizens on the sums contributed as donations to approved charitable organizations. This means that the cash used as contributions to these charitable organizations can be used to avail income tax exemption.

Who is entitled to Section 80G?

Anyone who earns their salary in India and files tax returns is entitled to avail of this and can make a donation under 80G.

Donations that cannot be used under this section:

Donations to political parties in India or to any charitable organizations out of the country are not entitled for Section 80G exemptions. Only contributions made to approved organizations and institutions within the country qualify for deduction.

Moreover, contributions only in cash are entitled for tax benefits. Any donations in kind (clothes, food, etc.) are not eligible for deduction.

Documents needed to avail the exemption:

A signed and stamped acknowledgement given by the charitable institution is required, to avail exemption under this Section. The main requirement is the registration number delivered by the Income Tax Department. This number should be printed on the receipt. Minus this, the receipt is not valid.

The receipt should have your name in precisely the same format and spelling as in your PAN card. Furthermore, the sum donated must be written in both numbers as well as words.

Author writes about Income Tax Benefits Section 80G. For more information about online Donations visit - https://www.helpageindia.org/donate.html