Donations made to specified institutions qualify for deductions of 50% of amount donated , for arriving at Taxable income, subject to a qualifying limit.
The exemption is calculated by reducing 50% of the donated amount from your Taxable income. By way of illustration, if your Taxable Income in a Year is Rs 5,00,000 and you make a donation of Rs 20,000, then your Net Taxable Income will become Rs 4,90,000 ( deduction of 50% of Rs 20,000). Your Income Tax amount will now be computed , at the prevailing tax rates, on the lower amount. You will save Tax on Rs 10,000. If your Tax rate is 30%, you will save tax of Rs 3,000 on your donation of Rs 20,000 under Sec 80G.
The qualifying limit under Sec 80G is 10% of the adjusted gross total income. If the aggregate of the sums donated exceed 10% of the adjusted gross total income, the amount in excess of 10% ceases to be entitled for tax benefit.
By way of illustration, if the qualifying limit is Rs 20,000 and the donation is Rs 10,000 only, then Rs 5,000 will be deducted under Sec 80G from Net Taxable Income, and tax calculated at prevailing rates on the remaining Net Taxable Income. If, in the same case, the aggregate of Donations is Rs 30,000, then only Rs 10,000 (being 50% of the qualifying limit of Rs 20,000 ) will be deducted under Sec 80G from Net Taxable Income , and tax calculated on the remaining Net Taxable Income.
Any person or “assessee” who makes an eligible donation under Sec 80G is entitled to get tax deduction, subject to conditions. This Section does not restrict the deduction to individuals, companies, or any specific category of tax payer.
Non Resident Indian donors, who hold an Indian passport ( who are Indian citizens) are eligible to get tax exemptions under Sec 80G, assuming they have tax obligation in India. Such donors should ensure that their PAN details are provided.
No. Donation in kind is not entitled for any tax benefit. Only donations in cash/ cheque/ draft/ neft/ rtgs are eligible for tax deduction.
Further, no deduction under this Section is allowed beyond Rs 10,000 if the donation is in cash. ( We will regretfully not accept donations in cash if the amount exceeds Rs 10,000).
You will require
- Receipt: For claiming deduction, a Receipt issued by the Recipient Entity , which contains its Name, address, and PAN is a must.
(We will make all efforts to see that your Receipt is issued in 7 working days after the funds are credited into our account and your required ID and documentation is complete.) - Registration Number of the Entity under Sec 80G : The Registration Number issued by the IT Department, along with the validity, must be printed on the Receipt.
With effect from 1.10.2009, it is not required for an entity for renewal of 80G certificate, if it was valid on 1.10.2009 or upto a date thereafter. So old 80G certificate will remain valid, if the same was valid on 1.10.2009.
We have uploaded the 80G certificates . You may download and print copy if you desire to.
If you donate directly to us you will not get any tax exemptions under the IRS rules. However, you may route your donations to the following Entities, in order to claim deductions.
Chitrapur Heritage Foudation
Note: Readers are encouraged to refer to the IT Act and Rules or to a Taxation Consultant for details.