All you should know about section 80G


21 Jul 2023

About Section 80G of the IT (Income Tax) Act, 1961 & steps claim tax deductions as per section 80G

Section 80G of the IT (Income Tax) Act, 1961, largely deals with charitable contributions to encourage people to engage in philanthropic endeavors. Tax deductions are available for donations to specific organizations or funds. When submitting an income tax return, a person may deduct the money given to a qualified charity.

What should be the mode of payment?

This deduction is only valid for cash, check, or draft form contributions. Food, materials, clothing, medications, and other in-kind gifts are not deductible under Section 80G.

Two important pointers to keep in mind.

• Amendment to section 80G: Starting with the 2017–18 fiscal year, deductions for cash donations beyondRs.2,000 will no longer be permitted under 80G. To qualify under Section 80G, donations overRs.2,000 must be provided in a way other than cash. The previous cap on monetary donations wasRs.10,000.

• The eligible donation amount: The different donations listed are eligible for a deduction of up to 100% or 50% with or without restrictions, as stated in Section 80G.

What are the documents required for section 80G?

The following documentation is required to support Section 80G deduction claims made by individuals.

• A properly stamped receipt: The trust's name, address, PAN number, the amount contributed, and donor's name should all be listed on this properly stamped receipt of the donation.

• Form 58: Without Form 58, a donor's gift will not be qualified for a 100% deduction and cannot be used to offset other expenses.

• Trust registration number: Donors should ensure their receipt includes the trust's registration number, which the Income Tax Department assigns to each qualifying trust. This registration number must be active on a certain date you are applying for tax exemption.

How to claim tax deductions as per section 80G?

The following enlisted information must be included in your income tax return to be eligible to claim this deduction:

• The donee's name

• The donee's PAN card number

• Location of the donee

• Amount of Contribution - A breakdown of Cash Contributions and Other Contributions

• The deductible amount

List of some donation organizations eligible for 100% deductions without qualifying limit

The following is the list of donations that are available for 100% deductions -

• National Illness Assistance Fund

• National Sports Funds

• Prime Minister's National Relief Fund

• National Cultural Fund

• National Children Fund

• Clean Ganga Fund

• Swachh Bharat Kosh

• National Fund for Control of Drug Abuse

List of some donation organizations eligible for 50% deductions without qualifying limit

The following is the list of donations that are available for 50% deductions -

• Jawaharlal Memorial Fund

• Indira Gandhi Memorial Trust

• Rajiv Gandhi Foundation

• Prime Minister's Drought Relief Fund

The contributions made by a firm, company, individual, or any other person are eligible for tax deductions under Section 80G if they fulfill other eligibility criteria. Cash donations up toRs.2,000, drafts, and cheques can be made to the trusts, and the tax deductions can be claimed under Section 80G. For more information visit Kotak General Insurance for car policy online

Related Blogs
Save Tax while Buying Electric Vehicle
Comprehensive Guide to Health insurance and Tax Savings
Save tax on an electric vehicle (EV) purchased on loan

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.