Donations to Charitable Institutions (Section 80G)

Section 80G of the Income Tax Act offers tax deduction on contributions made to certain charitable institutions prescribed under the act.

Eligibility

Any taxpayer can claim this tax deduction.

Mode of donation

Donation made in the form of cash or cheque is eligible for tax deduction. However, donations made in cash or kind exceeding Rs. 10,000, do not qualify for a tax deduction.

Amount of deduction

Some donations qualify for either 50% or 100% tax deduction whereas some others qualify for the same deduction but up to a maximum limit of 10% of Adjusted Gross Total Income of the taxpayer. So, broadly they can be divided into 4 categories. It can be understood with the help of following illustration.Read more

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