Monday, 9 April 2018

How Section 80G Can Help You Save Income Tax

1. Section 80G of the income tax Act allows donations made to prescribed funds and institutions as a deduction from gross total income before arriving at taxable income.
2. This deduction can be availed by any person or assessee who makes an eligible donation.
3. Contribution can be made via cheque or cash. Effective from the assessment year 2018-19, a person can avail a maximum deduction of Rs 2,000 if the donation is made in cash.
4. The amount that can be claimed as deduction depends on the entity to which the donation is made. One can claim 100% or 50% of the donated amount as a deduction.
5. For claiming deduction under Section 80G, it is important to have the receipt issued by the recipient trust which contains the name, address & PAN of the Trust, the name of the donor, and the amount donated.
 Source - Gconnect