Do you know that along with social service, you can also save your tax? Yes! The Government of India has made such rules that you can get income tax exemption by donating to a registered NGO. This is not only a great opportunity to help the needy, but also strengthens your financial planning. In this article, we will tell you in detail what is Section 80G of the Income Tax Act, how it works, and how you can take advantage of it.
Income Tax Act 80G
Section 80G provides Indian taxpayers the benefit of income tax deduction on donations made to eligible religious institutions and NGOs. If you donate to a trust that is 80G certified, you can get a tax exemption of up to 50%. For some organizations, this deduction can be up to 100%.
Who can claim tax deduction under Section 80G?
- Indian citizens
- Companies & Firms
- Hindu Undivided Families (HUF)
- Non-Resident Indians (NRIs) who donate to a recognized trust operating in India.
Will this benefit be available in the new tax regime as well?
No! If you file income tax under the new tax regime, you will not get the benefit of tax exemption under 80G. Only those who follow the old tax regime can claim this exemption.
How to claim tax exemption?
Donate to a registered NGO – Make sure the NGO you are donating to is registered under Income Tax Act 80G(5).
Donate digitally – Donations above ₹2,000 are acceptable only through bank transfer, cheque, demand draft or UPI. Cash donations will not be tax exempt.
Get Form 10BE – The NGO receiving the donation will issue you a certificate (Form 10BE), which you will have to submit while filing your income tax return.
Keep the receipt safe – The receipt of the donation you made should contain the name of the NGO, PAN number, donation amount and date of donation.
Some important things related to 80G
- Some trusts and institutions offer 100% exemption, while some offer up to 50% exemption.
- If you lose your receipt, you can contact the concerned NGO again.
- Only those donors who have filed income tax returns will get this exemption.
Frequently Asked Questions
Q: Can a partnership firm also avail 80G?
Answer: Yes! If the firm has donated to an eligible NGO, it can claim this exemption.
Q: If I am a Non-Resident Indian (NRI) and I have donated to Narayan Seva Sansthan, can I claim exemption under 80G?
Answer: Yes! Section 80G provides this benefit to both Indian citizens and NRIs.
Q: Can I avail 80G if I have donated Rs 10,000 in cash?
Answer: No! There will be no tax exemption on cash donations above ₹2,000.
Q: Can I avail exemption under 80G if I have opted for the New Tax Regime?
Answer: No! Only donors who have opted for the Old Tax Regime can avail this exemption.
Q: What if I lose my receipt?
Ans: If you lose your receipt you can email info@narayanseva.org or contact +91-7023509999.
