Income Tax Department Section 80C, 80G and 80GGA Offered various tax benefits on donations to charitable organizations; everyone must be aware of the Section 80C, 80G and 80GGA Acts before clime tax benefits.
Many people may not be aware that donors can avail themselves of tax saving benefits on donations. The Indian Income Tax Act’s Section 80G, along with plate numbers 1 and 2, provides tax exemptions on donations made to charitable organizations. Donors can avail themselves of these exemptions, and let’s understand how.
The Income Tax Department has set up Sections 80G, plate numbers 3 and 4 of the Income Tax Act 1961, for claiming tax exemptions on charitable donations. The IT Act of 1961 provides certain tax exemptions to encourage charitable contributions. The maximum limit for claiming tax exemption under section 80C is 1.5 lakhs. However, there is no such limit for these sections.
Section 80G permits donors to claim deductions on donations made to eligible funds, institutions or trusts. All taxpayers who have opted for the old tax system are eligible for tax benefits under this section. Four tax exemptions are available: 100%, 50%, no cap, and capped. Donations can be made in cash, check, or electronic mode. However, cash donations exceeding Rs.2 thousand are not eligible for deductions. To claim these deductions while filing ITR, Form 10BE must be submitted.
Under Section 80G of the Income Tax Act of 1961, charitable donations to religious organizations are tax-deductible. However, the organization donating must be recognized by the Commissioner of Income Tax. Donations to some organizations are unlimited. On the other hand, under plate number 3, donations can be made to organizations supporting scientific development. Tax deductions can be claimed through this. Donors should be aware of scientific research, social science, and statistical research conducted by the organization they are donating to.
Donations to organizations approved by the Income Tax Department can be tax-exempt. This category includes the All India Institute of Medical Sciences, the Rajiv Gandhi Foundation, and the Indian Institute of Technology. According to 80GGA, up to 100% of the total amount donated can be deducted.
