Donation tax deduction limit under 80G


As the financial calendar ticks down to the end of March 2020, we all get into the tax-saving groove. In case you have donated this year, you will be able to claim the same under Section 80G of the Income Tax Act that offers tax-saving provisions for charity. Section 80G enables tax exemptions for everyone – individuals, companies, and partnership firms. It also pertains to NRIs, making it an exceedingly attractive investment option, where the Government offers Section 80G donation tax exemption as an incentive for donation. 
However, one should be made aware of the donation tax deduction limit. Under the 100% category of tax deduction, the following schemes come in the deduction limit - National Defence Fund, Prime Minister's National Relief Fund, The National Foundation for Communal Harmony, and the National/State Blood Transfusion Council. Further, it is possible to claim donations under the same category if one makes donations to local authorities or the Government in its bid to promote family planning or the Indian Olympic Association. Now, there are a few donations and causes that can help a taxpayer with a donation tax deduction limit of 50% like the Prime Minister's Drought Relief Fund, National Children's Fund, and Indira Gandhi Memorial Fund. Moreover, donations with a 50% deduction can be availed if a person donates to any local authority or the Government, which in turn directs its course towards charitable intentions.

One may wonder how to claim deduction under Section 80G if their donation is made through payment modes like cheque, draft, or cash? While a person can donate any amount to an NGO or charity, donation deduction is available only for a donation of up to INR 10,000/-. It is important to note and be aware that donations materials like food and groceries, clothes, medicines, etc. are not valid for deduction claims. Hence, aligning with the Government's vision of a cashless economy, it is advisable to make donations through cheque or online fund transfer to qualify as an income tax deduction. 

Becoming a point of reference for charities world-over, Save the Children has exceptional ethics, transparency, and capability to out-do itself with every initiative. It supplicates a significant donation tax reimbursement to its donors, which it does through its well examined and executed programmes that cover numerous cities, towns, and villages across the nation that brings children out of poverty, poor health, and mistreatment.
Gain more information on 80G here https://supportapps.savethechildren.in/DonorSummary/

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