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Section 80G

Contributions to relief funds and humanitarian organizations can be deducted under Section 80G of the Internal Revenue Code. Section 80G, on the other hand, does not apply to all donations. Only contributions to specified trusts are eligible for a tax-deductible. Any taxpayer, whether a person, a corporation, a partnership, or another entity, may claim this deduction.

80G Deduction Claim

The following information must be used on your Income Tax Return in order to assert this deduction.

  • Name
  • Pan Card
  • Address
  • Contribution Amount

80G Tax Exemption

Any contribution to a rescue fund or charity organization is tax-deductible. This is a reduction that can be used by calculating net taxable revenue. Donation deductions, on the other hand, are subject to the following conditions:

  • Not every contribution is eligible for a full tax-deductible. When seeking a deduction, the assessee must adhere to the organization’s eligibility.
  • Specific taxpayers, Indian corporations, alliance firms, and other assessees will all demand deductions.
  • A cash contribution in excess of Rs 2,000 is not available for a tax deduction.
  • Any contribution in kinds, such as clothing, food, or drugs, does not count for a tax-deductible or benefit.

The amount of the contribution depends depending on the eligibility requirements. Section 80G allows for a deduction of either 100 percent or 50 percent, with or without limitations.

80G Donation Limit

Not every donation counts for a 100 percent deduction under section 80G. It is contingent on the organization of which the contribution is made is eligible. The tax advantage is determined by the organization’s eligibility. Furthermore, the deduction maybe 100% or 50%, with or without limitations.

The number that can be deducted from a contribution is known as the qualifying amount. To prevent any misrepresentation of the income tax return, any assessee must carefully measure the qualified number.

Donations are eligible for a one-hundred percent deduction under Section 80G, with no qualifying limits

  • National Defence Fund by the Central Government
  • Prime Minister National Relief Fund
  • National Foundation for Communal Harmony
  • A University/educational institution of National eminence
  • Zila Saksharta Samiti in districts under the chairmanship of the collector of that district
  • Fund by State Government for medical relief to the poor
  • National Illness Assistance Fund
  • National Blood Transfusion Council 
  • National Sports Fund
  • National Cultural Fund
  • National Children’s Fund
  • Chief Minister’s Earthquake Relief Fund
  • Prime Minister’s Armenia Earthquake Relief Fund
  • Africa (Public Contributions – India) Fund
  • Swachh Bharat Kosh (applicable from FY 2014-15)
  • Clean Ganga Fund (applicable from FY 2014-15)
  • National Fund for Control of Drug Abuse (applicable from FY 2015-16)

Section 80GGA

Donations to science study or agricultural development may be deducted under Section 80GGA. Except for those who have an income (or loss) from a company or occupation, all assessments are eligible for this deduction. Donations can be made in the form of a check, a draught, or currency; however, cash donations exceeding Rs 10,000 are not eligible for tax deductions. Tax refunds are available for 100 percent of the money donated or contributed.

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Donations Eligible Under Section 80GGA

  • Any amount paid to a research organization that conducts scientific research, or any sum paid to a college, university, or other institution for the purpose of scientific research, as long as the sum is authorized by the specified authority under section 35(1). (ii)
  • Sums paid to a research organization that conducts social science or statistical research, as well as sums paid to a college, university, or other institution for the same reason, must both be authorized by the specified authority under section 35(1). (iii)
  • Amount charged to a registered agency or organization that participates in a rural development initiative that has been approved under section 35CCA.
  • Amount charged to an accredited agency or organization for the purpose of educating people to adopt rural development programs.
  • Amount charged to a public sector corporation, a local government, or an authorized agency or organization for the implementation of projects or schemes authorized under section 35AC.

Any charges that are deductible under section 80GGA are not deductible under any other clause of the income tax act.

Donations Under Section 80G and 80GGA – FAQs

Q1. What does 80GG mean in terms of income tax? What is the sum of rent charged under 80GG?

80GG helps you to subtract rent paid even if your payment does not have an HRA part or if you are a self-employed employee with non-salary income. To assert the exclusion under 80GG, you do not own any rental accommodation in your place of residence.

Q2. What is the formula for 80GG? How can I get 80GG?

The lowest of the following deductions of 80GG will be allowed:

  • 5,000 rupees a month
  • Long-term capital gains, short-term capital gains under section 111A, income under section 115A or 115D, and exemptions under 80C to 80U make up 25% of adjusted total income. In addition, revenue is until the deduction under section 80GG).
  • Actual rent minus 10% of gross income

Q3. Who is eligible for an 80GG deduction?

Employees who do not get HRA as a part of their wages due to employment in the informal sector or self-employed individuals are eligible for an 80GG deduction. This deduction should not be used by someone who owns a home in the city where they live.

Q4. Is it possible to say both 80GG and HRA?

Individuals who pay rent but do not earn a house rent payment are not qualified for a deduction under section 80GG. In order to assert this deduction, the person, partner, or children must not own a home in the place of employment.

Q5. What is an 80G certificate?

When you donate to charitable trusts or section 8 companies or organizations that are registered to give tax deductions, you will get an 80G certificate that exempts you from paying taxes in part or in full.

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