Section 80G of Income tax was introduced in taxation system so that the entities and individuals who have contributed to some relief fund or charitable organisation can claim deduction while filing the tax. Although all kind of donations are not eligible for deduction under section 80G of income tax act.
Deduction Under Section 80G of Income Tax Act
If an entity wants to claim deduction under section 80G of IT act; they are required to follow below listed terms and conditions while making donation to a charitable organisation to make the donation eligible for deduction.
- The deduction can only be claimed by taxpayers.
- Donation can be made in any form like cash, cheque or demand draft but all donations exceeding 2000 INR must not be carried out in cash.
- These donations are eligible for deduction of 100%, 50% with and without restrictions under 80G of IT act.
- The taxpayer is required to file ITR along with the details like name, PAN, address of Donor and amount of contribution/ donation to be claimed for deduction under Section 80G of Income tax Act.