10 FAQs on tax savings and 80G deductions for donations

Donating to charity is a noble act, and to encourage philanthropy, the Government of India provides tax exemptions on charitable contributions under Section 80G of the Income Tax Act. However, donors often have questions about how these benefits work. Here are key answers to help you navigate your tax deductions.

1. What is Section 80G?

Section 80G is a provision in the Income Tax Act that allows taxpayers to claim deductions for contributions made to specified charitable organizations and relief funds. Depending on the registration of the trust, you can claim either 50% or 100% deduction on the donated amount.

2. How do I claim the deduction?

To claim this deduction, you need a valid 80G receipt issued by the registered NGO. The receipt must clearly mention the trust's Name, PAN, Address, 80G Registration Number, and Validity Period. Furthermore, the NGO must file Form 10BD with the tax department, which generates a certified Form 10BE certificate for you.

3. Can cash donations be claimed?

No, donations in cash exceeding ₹2,000 are not eligible for tax deduction under Section 80G. To claim exemptions, you must make payments through digital modes (UPI, NetBanking, Credit/Debit cards, or Cheques).