Reviewed by Oct 05, 2020| Updated on
Doing charity is an excellent task. Not just the God but the income tax department admits this fact. Therefore, you get more than just good karma for making charitable donations. Section 80G of the Income Tax Act offers a tax deduction on contributions made to certain charitable institutions prescribed under the Income Tax Act, 1961.
Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations, however, are not eligible for deductions under section 80G. Only donations made to prescribed funds qualify as a deduction.This deduction can be claimed by any taxpayer – individuals, company, firm or any other person.
Not all donations qualify for 100% tax deductions. Some of them are restricted to 50% of the amount contributed, whereas some others qualify for the same deduction but up to a maximum limit of 10% of the adjusted gross total income of the taxpayer. The prescribed list of such institutions is provided in section 80G of the income tax act.
To claim such deduction in your income tax return, the following details have to be submitted: