Donations Under Section 80G and How to claim deduction for this

Section 80G :

Section 80G of the Income Tax Act provides tax deductions for donations made to specified charitable institutions and funds. This deduction is available to individuals, Hindu Undivided Families (HUFs), companies, and other entities. It serves as an incentive for taxpayers to contribute to social causes by encouraging a culture of charity.

Who Can Claim 80G Deduction?

Any taxpayer, be it an individual, HUF, company, or any other entity, can claim 80G deduction, with a condition that they have made eligible donations.

Eligible Donations to claim 80G Deduction:

Not all donations qualify for 80G deduction. The Act specifies certain institutions and funds to which donations must be made eligible. These generally include:

• Donations to the Prime Minister's Relief Fund or the National Defence Fund: These are typically 100% deductible, meaning the entire donation amount is eligible for 80G deduction.
• Donations to certain charitable institutions and religious trusts: These can include donations to organizations focusing in areas like education, healthcare, poverty alleviation, and preservation of art and culture. The 80G deduction percentage may vary, often being 50% of the donation amount.
• Donations for renovation or repair of notified temples, mosques, gurudwaras, churches, or other places of worship: These may also be eligible for 80G deduction, often at 50% of the donation amount.