Understand the donation tax deduction limit.
The thought of giving to charity and doing our bit for society may have crossed our minds on several occasions. It is a laudable gesture to donate to a cause that one sincerely believes in to help make a difference. Given the grandeur of this gesture, the Indian government extends its full support towards numerous philanthropic services. Section 80G of the Indian Income Tax Act, 1961 concedes a tax deduction on contribution/donations made to any charitable fund or organisation. However, it is crucial to note that there is a donation tax deduction limit; not all donations qualify for 100% tax deductions, whereas some are restricted to 50% of the amount donated. The designated list of such organisations is rendered in Section 80G of the Income Tax Act. Section 80G of the Income Tax Act Contributions made to certain relief funds and charitable institutions have a donation tax deduction limit , which can be claimed as an income tax deduction under Section 80G. This income tax deduction ca