What is Section 80G and How Does it Help to Save Income Tax?

Section 80G of the Indian Income Tax Act, 1961 allows individuals and businesses to claim tax deductions if they donate to a charitable cause. This provision allows one to save the money one spends on tax while at the same time support a noble cause. This blog explores what Section 80G is, how it works, and how donating to NGOs can help individuals and businesses save on income tax.

What is Section 80G?

Given below are the key features of Section 80G-

• Any individual, partnership firm, HUF, company and any other type of taxpayer can claim deduction under Section 80G.
• Taxpayers can claim up to 50% or 100% of the donated amount, depending on the organization they are donating to.
• Only donations made to registered NGOs and charitable institutions qualify for deductions.
• To claim tax benefits, the donor should have a receipt of the donation made and NGO’s registration details.
• The donor must have a 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. It is important to note that cash donation above Rs. 2000 do not qualify for tax deductions.

How does Section 80G help?

Here’s how donating under Section 80G not only supports NGOs but also helps in saving your taxes:

• When you donate to an NGO, the amount you donated gets deducted from your total income. This reduces your taxable income and the overall tax liability.
• Depending on the organization you are making a donation to, you can either get 100% or 50% deduction.
• Businesses and corporations can also claim deductions under Section 80G, making it an attractive option for CSR (Corporate Social Responsibility) initiatives.
• While the deduction percentage varies, there is no upper limit on the amount one can donate, offering greater tax-saving opportunities.

Why Genesis Foundation is the best NGO to donate money?

Genesis Foundation is working for children who are diagnosed with a Congenital Heart Defect by providing financial resources for heart treatment for underprivileged children. At the Foundation, 100% donations received from individual donors are used for the treatment of the children with no allocation towards administrative expenses. This means that every rupee goes to save the little heart. They are transparent about the utilisation of donor funds. Every donor receives a report on the child they have supported.

How to Donate to Genesis Foundation?

The NGO 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 Sum Up

By making an 80G donation for NGO in India, you not only support social causes but also enjoy financial benefits through tax deductions. All donations that you make bring about a positive change in the larger community. Thus, donations offer the opportunity to contribute to a greater good and help with better financial planning.

References-

https://cleartax.in/s/donation-under-section-80g-and-80gga

https://www.indiafilings.com/learn/section-80g-deduction-income-tax-act/#:~:text=Section%2080G%20tax%20exemption%20is,lowering%20your%20overall%20tax%20liability.