Section 80G of Income tax

Section 80G of the Income Tax Act provides several benefits to taxpayers who donate to eligible charitable institutions and funds. By claiming deductions under this section, taxpayers can reduce their taxable income, which in turn lowers their tax liability.

Key Benefits:

- Tax Deductions: Donations to approved institutions qualify for tax deductions, ranging from 50% to 100% of the donated amount.
- Reduced Tax Liability: By claiming deductions, taxpayers can lower their taxable income, resulting in reduced tax liability.
- Encourages Philanthropy: Section 80G promotes charitable giving by providing tax benefits to donors.
- Supports Social Causes: Donations to eligible institutions support various social causes, such as education, healthcare, and environmental conservation.

Eligible Donations:

- Cash Donations: Cash donations up to ₹2,000 are eligible for tax deductions.
- Cheque or Demand Draft: Donations made through cheque or demand draft are eligible for tax deductions.
- Electronic Mode: Donations made through electronic modes, such as online banking or UPI, are also eligible.

Who Can Claim:

- Individuals: Resident Indians and Non-Resident Indians (NRIs) can claim deductions.
- Companies: Companies registered under the Indian Companies Act can claim deductions.
- Hindu Undivided Families (HUFs): HUFs can also claim deductions under Section 80G.