Donation Under Section 80G – Save Tax While Supporting Noble Causes Making a Donation Under Section 80G is not only a noble gesture but also a smart financial move for taxpayers in India. This provision of the Income Tax Act allows you to claim deductions on contributions made to eligible charitable institutions and relief funds, enabling you to support social causes while reducing your taxable income. Under Donation Under Section 80G, contributions qualify for 50% or 100% deduction, with or without restrictions, depending on the recipient organization. For example, donations to the Prime Minister’s National Relief Fund are eligible for a 100% deduction, whereas many other charitable trusts qualify for a 50% deduction. In some cases, the total deduction claimed cannot exceed 10% of your adjusted gross total income. To claim the benefits of Donation Under Section 80G, ensure the organization is officially registered under Section 80G and that you obtain a valid receipt. This receipt should include the donor’s name, PAN, address, donation amount, date, and the trust’s registration number. Since April 2021, it has also become mandatory for organizations to upload donor details to the Income Tax Department’s system for deductions to be approved. The Donation Under Section 80G benefit is available to individuals, companies, firms, and other taxpayers. Apart from tax savings, your donation can support causes like education, healthcare, disaster relief, and community development projects. By making a Donation Under Section 80G, you are taking a step towards positive societal change while making a financially sound decision. It is a win-win scenario where you contribute to nation-building and also reduce your tax burden. If you are planning your tax-saving strategy this year, include Donation Under Section 80G to maximize both your social impact and your financial benefits.