Know how to avail tax deduction under Section 80G

Most of us are familiar with Section 80C under Income Tax Act as it help us in claiming Rs 1.50 lakh from our total income, but do you know there is Section 80G which also has similar provisons.

Under Section 80G, tax exemptions can be claimed by everyone, irrespective of the taxpayer being an individual, company, or a partnership firm.

Not only this, even NRIs are eligible to claim benefits under Section 80G, as it has nothing to do with Mutual Funds, Home loans or Insurance.

The government introduced Section 80G to motivate Indian citizens to donate by providing them income tax relief. Once a person donates any amount, he or she is eligible to claim the amount donated as deduction when he/she files income tax return.

Under IT Act, Section 80G is available for contributions made to certain relief funds and charitable institutions.

Here's what you need to know. Amount of deduction under Section 80G, as per Indiafilings.com and ClearTax.

Donations with 100% deduction

Under this category, one can enjoy 100% tax deduction and are not subject to any qualification limit being met.

Schemes that qualify for 100% deduction are -  National Defence Fund, Prime Minister’s National Relief Fund, The National Foundation for Communal Harmony, and National/State Blood Transfusion Council.

Donations with 50% deduction

50% tax deduction can be claimed if donations are made under trusts like Prime Minister’s Drought Relief Fund, National Children’s Fund and Indira Gandhi Memorial Fund.

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