Donate And Save Tax

We know donations are good! And the Section 80G Income Tax Act provides the noblest way to save tax in India – that is by donating funds to organizations specified in the Act. It is a special provision that allows taxpayers to be exempt from paying taxes.

The Income Tax Act has a provision known as Section 80G that enables taxpayers to deduct a variety of contributions made as charitable donations. Donations to the designated non-profits/ NGOs and charity organizations are eligible for the Act’s deduction. When filing the income tax return, the amount donated may be deducted as per section 80G.

Tax exemption donation reduces the tax liability of the donor by decreasing his/ her taxable income under the 80G section of IT. Only registered charities/ trusts/ non-profits are eligible to issue 80G tac receipts and it decreases taxable salary by 50% of the donated amount. Here’s an example – if your yearly taxable income is ₹7,00,000 and you make a donation of ₹10,000 then your net taxable income will become ₹6,95,000. Your income tax will now be calculated on this reduced taxable income based on the current tax rates.

All donations made to Dyutima NGO are eligible for a 50% deduction from taxable income under Section 80G of the Income Tax Act. Child Rights and Registration number – 424 and has the approval of the IT department under the 80G section. After making a donation, you will get a certificate under Section 80G with a receipt that can be used while filing income tax returns (ITR) for tax deductions. It reduces the tax liability by 50% of the donated amount.