Which donation is eligible for deduction?
Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assessees except those who have an income (or loss) from a business and/or a profession. Mode of Payment: Donations can be made in the form of a cheque, a draft, or cash.
How much deduction is allowed under 80G?
*Deduction under Section 80G is limited to a maximum of 10% of the Gross Total Income. The balance income after deductions of donations would be taxable as per the income tax slabs of the taxpayer.
Which donations are tax deductible in India?
A taxpayer can claim a deduction in respect of donations to certain funds/ institutions under section 80G. For claiming deduction, a donor should not forget to take the donation receipt containing name, PAN, address and registration number of the donee along with the name of donor, amount donated and mode of payment.