#savetaxunder80G

[arjunsinghveda]

Sources of Tax Saving 80G Exemption List

Are you looking for ways to reduce your taxable income? One option is to make donations to eligible organizations and claim deductions under section 80G of the Income Tax Act. This can help you save a significant amount of tax. Let's look at the sources that qualify for 80G exemption.   

What is Section 80G?

Section 80G of the Income Tax Act allows you to claim deductions for donations made to certain approved funds, charitable organizations, and trusts. The amount you can claim as a deduction depends on the type of fund or institution you donate to. 

Sources Eligible for 100% Deduction

Some donations qualify for a 100% deduction from your taxable income. This means you can reduce your taxable income by the full amount you donated.

Approved Funds

Prime Minister's National Relief Fund

National Defence Fund

Approved University/Educational Institutions/temples

Zila Saksharta Samiti for promoting literacy

Charitable Trusts/Institutions

Donations to certain charitable trusts and institutions approved by the government for activities like relief of the poor, education, medical relief, etc.

Sources Eligible for 50% Deduction 

In other cases, you can claim a deduction of 50% of the donated amount from your taxable income.

Funds for Social Causes

Indira Gandhi Memorial Trust

Rajiv Gandhi Foundation

AIIMS Funds

Local Authorities/Funds

Donations to government or local authorities for promoting family planning

Certain funds like the National Children's Fund

How to Claim the Deduction

To claim a deduction under section 80G, you need to make your donation through an approved mode of payment like cash, cheque, or online transfer. Make sure to obtain a receipt from the recipient organization.

When filing your tax returns, fill in the details of your eligible donations in the relevant section. You can claim the deduction based on the percentage allowed for that organization.

Maximize Your Tax Savings

While making donations for a good cause is admirable, you can also utilize section 80G strategically to save on taxes. Here are some tips:

Research approved organizations carefully before donating

For larger donations, choose recipients qualifying for 100% deduction

Combine 80G deductions with other allowed deductions to further reduce taxable income

By taking advantage of section 80G, you can do your bit for social causes while also lowering your annual tax outgo. Explore all the eligible sources to maximize your tax savings.

[arjunsinghveda]

How to Save Tax Under 80G Section

If you want to lower the amount of income tax you need to pay, one great option is to donate money to certain approved organizations and charities. In India, these donations can qualify for tax deductions under Section 80G of the Income Tax Act. Let me explain how this works in simple terms and how you can save tax under 80G Section.

Claim a Deduction For Donations

To save tax Under Section 80G, you can claim a deduction for donations made to specified funds, charitable institutions, and organizations. The deduction amount varies from 50% to 100% of the donated sum, depending on the type of organization. This deducted amount gets subtracted from your total taxable income, thereby reducing your tax liability.

For example, let's say your annual taxable income is Rs. 8,00,000. If you donate Rs. 50,000 to a fund that qualifies for 100% deduction under 80G, the entire Rs. 50,000 can be deducted from your taxable income. So for tax purposes, your income would be calculated as Rs. 7,50,000 (8,00,000 - 50,000). This lower taxable income means you'll have to pay less income tax.

Organization Approved By Government

The government has approved many organizations, funds, and charitable institutions for these deductions to encourage donations for social, religious, educational and other public causes. Some examples are the Prime Minister's National Relief Fund and Iskcon Temple charity for promoting education, preserving monuments or environment, and organizations for the disabled. The full list is available on the Income Tax Department's website.

To claim the deduction, you need to make the donations through proper banking channels like cash, check, demand draft, or electronic transfer. You also must obtain a receipt from the organization showing the donated amount, date, and other required details.

File Your Income Tax Return

When you file your income tax return, you can submit these receipts as proof of your donations along with the ITR form. Make sure to carefully fill out the relevant sections related to deductions under 80G. The tax software will automatically calculate the eligible deduction amount based on the approved funds and percentage limits.

It's important to note that there is an overall cap on the deduction allowed under Section 80G. You can claim deductions up to a maximum of 10% of your adjusted gross total income. Any excess donations above this limit cannot be claimed in the same year but can be carried forward for up to 10 years.

Conclusion So in simple terms, Save Tax under section 80G by donating money to approved charitable organizations and funds. Document your donations properly and claim the eligible tax deduction to reduce your taxable income and save on income tax. It's a win-win – you get to support good causes while also lowering your tax burden!