Donation to NGO Tax Exemption in India: How to Claim Benefits

Under Section 80G of India’s Income Tax Act, one can reduce their tax liability by a donation to NGO tax exemption India. These donations play a crucial role for the disadvantaged by making their as well as their future generation’s life better. Additionally, contribution to this noble cause can also have a positive impact on your finances through tax exemption. In this blog, we will explain how one can claim benefits by donating to an NGO in India.

Donation to NGO Tax Exemption in India

One can avail tax deductions if they donate to a charitable cause under Section 80G of the Indian Income Tax Act, 1961. This provision allows one to save the money one spends on tax while at the same time support a noble cause. Depending on the organization, one can claim a deduction of up to a maximum of 50% or 100% of the donated amount.

Eligibility Criteria under Section 80G

One must keep the following points in mind before donating to an NGO to claim benefits:

• Only donations made to registered NGOs and charitable institutions qualify for deductions.
• To claim tax benefits, one should have a receipt of the donation made and NGO’s registration details.
• One must have their PAN card.
• The donation must be made via bank transfer, cheque, or digital payment.
• The donations made must be monetary. In-kind donations do not qualify for tax exemptions.
• Cash donation above Rs. 2000do not qualify for tax deductions.

Donation to NGO Tax Exemption in India: How to Claim Benefits?

Under Section 80G of the Indian Income Tax Act, 1961, donors can avail tax deductions. Here are the steps to claim benefits:

1. 1-While filing ITR, fill in details such as name, the amount donated, the date and mode of payment, and the NGO’s PAN, address, and 80G registration details. One can use donation receipt or in Form 10BE to accurately fill in the required information while filing their ITR.

2. The details need to be entered in the appropriate tables in the return form:

• Table A: Donations eligible for 100% deduction without qualifying limit
• Table B: Donations eligible for 50% deduction without qualifying limit
• Table C: Donations eligible for 100% deduction subject to qualifying limit
• Table D: Donations eligible for 50% deduction subject to qualifying limit

Documents Required for Claiming Benefits under 80G

Here are the documents required for claiming benefits under Section 80G:

• 80G donation receipt: This receipt issued by the NGO. To know more about the 80G donation receipt format, Click Here
• Registration Number of the NGO:All NGOs registered under Section 80G have a registration number provided by the IT Department. The donation receipt must contain this number.
• Form 10BE:This form basically has information captured in the donation receipt. This form is issued by the organization itself.
• Form 58A– This form is required for claiming a 100% deduction. Without this form, the donation will not qualify for a full deduction. This form is issue by the NGO to the donor.
• One must have his/her PAN card while filing income tax returns.

Support Genesis Foundation and Save a Little Heart

Genesis Foundation, one of the best NGOs to donate money to, stands by their unwavering commitment to supporting children with congenital heart defects (CHD). Our work is extremely transparent- you can see the annual reports available on our website that clearly outline how the funds received are allocated. We share regular reports and impact stories with our donors to ensure that they are well-aware of the difference their donation.

We are registered under Sections 12-A, and 80-G of the Income Tax Act which entitles 50% tax exemption to Indian donors.  We also provide the 80G donation receipt to our Indian donors. At the Foundation, 100% of donations from individual donors are used towards the treatment of children with no allocation towards administrative costs.

Contact Us Today

Genesis Foundation offers a wide range of options for making payments which includes Paytm wallets, net banking, bank transfers, payment through cheques etc. If you want to donate to Genesis Foundation and help save a little heart, visit: https://www.genesis-foundation.net/donate. To know more about the Foundation, call +91 96506 03438 or email [email protected]. To find out more about our work, visit www.genesis-foundation.net or follow us on- Facebook, LinkedIn, Twitter, Instagram and YouTube.

References

1. ClearTax. Charitable Trusts and NGOs: Income Tax Benefits in India. Available from: https://cleartax.in/s/charitable-trusts-ngo-income-tax-benefits
2. IndiaFilings. Section 80G Deduction – Income Tax Act. Available from: https://www.indiafilings.com/learn/section-80g-deduction-income-tax-act/