There are various tax planning possibilities with donations that you can utilize for your benefit and get the maximum tax reduction possible. Section 80G of the income tax act allows you to make contributions to some relief funds and charitable institutions and lets you claim them as an income tax deduction. However, all donations are not eligible for deductions according to section 80G.<\/p>\n\n\n\n
Who can get the benefit?<\/strong><\/p>\n\n\n\n This section can be used by any taxpayer \u2013 individuals, businesses, entities, or anyone. You can get the advantage by contributing to a notified organization and relief fund set by the government.<\/p>\n\n\n\n The contributions made to foreign associations and political parties are not eligible for deduction. Whereas, under the section 80GGC of the I-T Act, individuals can obtain a deduction by making donations to political parties.<\/p>\n\n\n\n Conditions for claiming a deduction for donations:<\/strong><\/p>\n\n\n\n All donations are eligible for tax deduction under Section 80G except in cases where donations have been made in ration, clothing, medicines, etc. To claim any deduction, you need to submit proof of payment. Details of the stamped receipt issued by the receiver should be cited by the taxpayer while filing his\/her income tax return.<\/p>\n\n\n\n The following details should be mentioned on the receipt: <\/p>\n\n\n\n \u25cf Details of the foundation (including name and address)<\/p>\n\n\n\n \u25cf The name of the contributor<\/p>\n\n\n\n \u25cf Payment amount (mentioned in both words and figures)<\/p>\n\n\n\n \u25cf The registration number of the recipient granted by the income tax department under the section of 80G along with its validity<\/p>\n\n\n\n The notion of making charitable contributions to improve others’ lives and help those in need has existed forever. From large organizations to individuals, people from every walk of life are known to contribute money. The income tax department encourages people to donate for social causes and allows them to claim an exemption under Section 80G on the amount donated to NGOs and charitable trusts. There are various tax planning possibilities with donations that you can utilize for your benefit and get the maximum tax reduction possible. Section 80G of the income tax act allows you to make contributions to some relief funds and charitable institutions and lets you claim them as an income tax deduction. However, all donations are…<\/p>\n","protected":false},"author":1,"featured_media":17191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"yoast_head":"\n
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