Tax Deduction: Benefit of tax deduction is available on donation, keep these rules in mind before claiming.
We can also avail tax deductions through the donations we make. Let us tell you that under Section 80G of the Income Tax Act 1961, the taxpayer gets the benefit of tax deduction on donation. In this, taxpayers can claim tax deduction for donations they make to different funds or charitable institutions.
New Delhi. Many people in the country donate to charity, NGO or any fund. If you also donate then this news is very important for you.
Let us tell you that under Section 80G of the Income Tax Act, 1961, taxpayers can claim tax deduction on the donated amount. In this, taxpayers can claim only when they make a donation to any fund or charity.
How much tax deduction can be done
Taxpayers can easily avail tax deduction on donations under Section 80G of the Income Tax Act, 1961. In which the taxpayer can get benefits ranging from 50 percent to 100 percent.
This profit is based on the share of donation. Let us tell you that before claiming tax deduction, taxpayers need to take special care of some things.
Be sure to keep these things in mind
If you donate food, clothes, medicines etc. then tax deduction cannot be claimed for it. This is not valid for tax exemption under section 80G.
Even if a taxpayer donates more than Rs 2,000 in cash, he cannot avail the tax deduction.
Donation certificate is necessary
If the taxpayer wants to avail the benefit of tax deduction, then for this the taxpayer is required to obtain a certificate of donation in Form 10BE. This certificate should include information about the organization to which the donation has been made.
Apart from this, it is very important to have all the other details like PAN, name of the organization, section under which donation is available, amount of donation etc.
The taxpayer needs to keep this certificate safe. Apart from this, he should also keep the donation receipt received from the organization safely. Let us tell you that the donation receipt should contain the name, address, name of the donor, amount and the registration number received from the Income Tax Department.
Whenever the taxpayer files the Income Tax Return (ITR), it is necessary for the taxpayer to provide all this information.
