Donation for child education

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Questions to ask about tax exemptions on
charity donations in India
Philanthropy in India has been developing, as
more individuals feel the sense of needing to
give back to the society they live in. The
simplest way of contributing is by donating to
the various food NGOs in India and social
organizations working to alleviate the existing
issues of the country. These impending issues
range from rampant malnourishment, illiteracy,
lack of healthcare, inadequate facilities for the
elderly, etc. You can join hands with these
organizations to truly facilitate positive change
and feel a great sense of satisfaction, but also
reduce the amount of taxes you pay! As per
Section 80 (G) of the Income Tax Act,
Individuals, Hindu Undivided Families, Companies
and Partnership Firms can claim tax exemptions
once they Donate money to NGO. The decision to
allow this exemption was taken by the Government
and financial authorities to encourage more
Indians to donate towards social causes. If you
wish to make a charitable donation and
subsequently claim a tax deduction, here are a
few guidelines to keep in mind What mode of
payment should you use? Tax exemptions under 80
(G) can only be availed if the donations above ?
2000 are made through modes other than cash.
Donors can make monetary contributions through
cheques, demand draft, online banking, net
banking, or card payments. In- kind donations
such as textbooks, clothing, or food items are
appreciated by NGOs but do not come under the
purview of Section 80 (G) to claim a
deduction. What documentation do you need to
claim an exemption? While filing the Income Tax
returns form, you will have to submit proof of
the charity donation made to claim a deduction.
NGOs will provide donors with a receipt as proof
of payment.
It is important to ensure that the receipt
contains information including the name of the
donor, amount contributed, and date of payment.
Details regarding the NGO or charitable
organization including the registered name,
address, and PAN number must also be mentioned
clearly.
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How much of your donation will be claimed as a
deduction? You must verify the qualifying limit
of the NGO before making a donation and claiming
a deduction. NGOs across India either offer 50
exemption or 100 exemption.