Is Your Donation Eligible for Income Tax Deduction u/s 80G? Income Tax Dept issues New FAQs
These FAQs explain when donations qualify for income-tax deduction under Section 80G and how donors can correctly claim the benefit.
The Income Tax Department has issued FAQs to help donors understand when a donation is eligible for tax deduction and how to claim it correctly. The most important points every donor should know are explained below. 1. What is Section 80G? Section 80G allows you to reduce your taxable income if you donate money to certain approved charities, funds, or institutions. This means you...
The Income Tax Department has issued FAQs to help donors understand when a donation is eligible for tax deduction and how to claim it correctly. The most important points every donor should know are explained below.
Section 80G allows you to reduce your taxable income if you donate money to certain approved charities, funds, or institutions. This means you may pay less income tax if your donation qualifies.
Anyone who pays income tax (individuals, companies, firms, or other taxpayers) can claim this benefit, as long as:
- They have taxable income, and
- They donate to a charity or fund approved under Section 80G.
3. Do all donations give tax deduction?
No. Only donations made to approved organisations listed or registered under Section 80G are eligible. Before donating, you should check whether the organisation is registered under 80G.
4. How much tax deduction can you get?
It depends on where you donate:
- Some donations give 100% tax deduction
- Some give 50% tax deduction
- Some have no upper limit
- Some are allowed only up to 10% of your income
The charity you donate to decides which category your donation falls into.
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5. Are cash donations allowed?
- Cash donations up to ₹2,000 are allowed
- Cash donations above ₹2,000 are NOT allowed for tax deduction. Always use bank transfer, cheque, UPI, or online payment for larger amounts.
6. Can you claim the same donation twice?
No. A donation can be claimed only once under the Income Tax Act. You cannot use the same donation for deductions under two different sections.
7. What proof do you need?
To claim a deduction, you must have:
- A donation certificate (Form 10BE) from the charity
- Details like the charity’s name, PAN, and 80G registration number
8. How does the Income Tax Department verify your claim?
The charity must submit its donation details to the Income Tax Department in Form 10BD. Your tax return must match the information filed by the charity; otherwise, your claim may be rejected.
9. Can you claim 80G under the new tax regime?
No. If you choose the new tax regime, you cannot claim a deduction under Section 80G.
10. What if the charity’s 80G registration is cancelled?
If the charity’s 80G registration is not valid at the time of donation, you will not get any tax benefit. Always verify the charity’s status before donating.
11. Can unused donation be carried forward?
No. If part of your donation cannot be claimed in a year due to limits, it cannot be carried forward to the next year.
12. Can I claim the same donation under another section?
No. A donation claimed under Section 80G cannot be claimed again under any other tax section.
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