Tax Exemption on Donation is an important benefit for individuals who contribute to registered charitable organisations in India. Apart from supporting social causes, donors can legally reduce their taxable income by claiming deductions under the Income Tax Act. However, many people are unaware of how this exemption works and what conditions must be fulfilled.
To claim tax exemption, the donation must be made to an NGO or trust registered under Section 80G of the Income Tax Act. Donations can be made in cash, cheque, or digital modes, but cash donations above the prescribed limit are not eligible for deduction. It is also important to keep proper documentation for future reference.
the organisation must be registered under section 80g
donation receipt should include pan and registration number
deduction is available at 50% or 100% as applicable
cash donations above the allowed limit are not eligible
Tax exemption on donation not only encourages responsible giving but also promotes transparency in charitable contributions. By understanding the eligibility criteria and maintaining proper records, donors can support meaningful causes while benefiting from lawful tax savings.
