"Guide to Tax-Deductible Donations: Section 80G & 80GGA"

Understand Eligibility, Benefits, and Procedures for Claiming Tax Deductions on Charitable Contributions

Section 80G and 80GGA – Donations Eligible for Tax Deduction

Introduction:

Section 80G of the Indian Income Tax Act provides tax deductions for donations to certain relief funds and charitable institutions.
Section 80GGA allows deductions for donations made towards scientific research or rural development.

Eligibility and Mode of Payment:

Taxpayers eligible for deductions under Section 80G include individuals, companies, firms, HUFs, NRIs, and others.
Donations must be made to prescribed funds through cheque, demand draft, or cash (for donations below Rs 2,000).

Claiming Deduction:

To claim deduction under Section 80G, details of the donation including the name, PAN, address of the donee, and contribution amount must be submitted in the income tax return.
Different tables are provided in the ITR for various types of donations.

List of Donations Eligible for Deduction:

Donations eligible for 100% deduction without qualifying limit include the National Defence Fund, Prime Minister’s National Relief Fund, etc.
Donations eligible for 50% deduction without qualifying limit include Prime Minister’s Drought Relief Fund, Jawaharlal Nehru Memorial Fund, etc.

Adjusted Total Income:

Adjusted gross total income is the gross total income reduced by deductions under Sections 80C to 80U, exempt income, capital gains, etc.

Tax Benefit for Different Taxpayers:

Tax benefit varies based on the applicable tax rate for the taxpayer.
Example scenarios illustrate tax benefits for individuals and companies.

Documents Required:

Taxpayers must have duly stamped receipts and trust registration numbers to support their claim for tax deduction under Section 80G.

Section 80GGA:

Section 80GGA allows deductions for donations towards scientific research or rural development.
Donations can be made through cheque, draft, or cash (with restrictions on cash donations over Rs 2,000).

List of Donations Eligible under Section 80GGA:

Eligible donations include sums paid to research associations for scientific research, approved institutions for rural development, etc.

Important Note:

Expenses allowed under Section 80GGA cannot be claimed under any other provision of the Income Tax Act.

This detailed overview covers the eligibility, mode of payment, claiming deduction, list of eligible donations, and important points related to Section 80G and 80GGA for tax deductions on donations

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