Donation Exemption Under Income Tax



Section 80G deduction of the Income Tax Act is allowed for the amount paid by the taxpayer as a donation to any fund or institution or charitable Trust. All donations are not treated equally under Income Tax Act. Donations to certain funds and institutions qualify for a 100% or 50% deduction without any qualifying limit.

What Is The Limit Of 80G Income Tax Exemption?

The maximum amount allowable under Section 80G shall be 50% of the lower amount donated or the qualifying limit for your donations under Section 80G, which is 10% of your adjusted gross total income.

Eligibility to claim deduction under Section 80G:

Individuals

Companies

Firms

Hindu Undivided Firm (HUF)

Non-Resident Indian (NRI)

Any other person

Documents required to claim a tax deduction on donations:

The receipt must include information such as the donor’s name, address, PAN, trust registration number, and name, as well as the donation amount and method of payment. Form 58 is required if the donation qualifies for a 100% deduction.

How Much Donation Is Exempted From Income Tax?

Govt. or any approved local authority, institution, or association to be utilized for promoting family planning:100%

The Indian Olympic Association or any other notified association or institution for the development of infrastructure for the development of sports and games in India or sponsorship of sports and games (Note: this deduction is only available to companies):100%

List of donations eligible for 100% deduction without qualifying

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