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Showing posts from March, 2021

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

What is the donation tax exemption?

 For any taxpayer looking to save tax, you have landed yourself on the right article. Section 80G enables donation tax exemptions for all taxpayers – individuals, companies, and/or partnership firms. Also applicable to NRIs, donation tax exemption makes it a highly engaging investment option, where the Indian Government offers Section 80G donation tax rebate as an incentive for donation/contribution. Under the Income Tax Act of 1961, Section 80G can be availed through a contribution/donation to relief funds and charitable institutions. For one’s own knowledge and information, Section 80G of Income Tax laws is not just limited to donations made to charities, one can also avail a rebate on donations made to entities involved in scientific research and rural development programmes. Since there is a benefit for NRIs too while making a donation, they have become more open-minded and are willing to donate to various causes and charities. Taxpayers can claim income tax deductions under secti