Tuesday, September 23, 2014

deduction under section 80g of income tax act 1961 for donation

Deduction under section 80g of income tax act 1961 for donation for Assessment year 2015-16 financial year 2014-15

Questions Asked

  • Can I submit proof of donation for next year Income  Financial year 2014-15 Assessment year 2015-16
  • Deduction under Section 80g of income tax act 1961  : Blue Cross of INDIA - What percentage of donation 
  • I have form-16 in which the donations given under 80G  Assessment year 2015-16
  • Calculation of Ded. u/s 80GG & 80G?
  • Eligibility criteria to claim tax benefit under 80G of IT in India?
  • Can I know how much Income Tax I can Save under Sec 80g income tax Act 1961 ?

If you are salaried professional and a tax payer , you can claim income tax exemption for the donations or charities you have made under section 80G income Tax Act 1961.Donations of funds and to charitable institutions which are specified under Section 80G are listed below. You can claim 100% of donations.However there are few conditions or critiria to be met to claim income tax exemption u/s 80G.

Conditions for getting tax exemption and deductions  u/s 80G

  • Your Gross Total Income should be eligible for Tax Benefits for deductions
  • Donations should be made to specified Institutions or Charitable Trusts or Organizations only.
  • All Donations should be done within the limits specified under the income tax law.
  • Your total donations generally should not exceed beyond 10% of Gross CTC or Annual Income.
  • For specific donations such as Prime Minister Relief Fund or Drought Relief fund and the National Children funds  , you can get deduction or tax benefit upto 50%  but it should not go beyond 10% of your Gross Take Home.
Example on how much benefit you will get on your salary.

Say your salary is Rs.10Lakhs, you are eligible 10% of your salary , That is Rs.100,000. So out of this you can consider Rs.50,000 for actual tax benefit. So ideally you should be saving 30% of Rs.50,000.

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