Rashmi
Quick Summary
When you donate money to a charity or NGO, you can get a tax deduction under Section 80G of the Income-tax Act, 1961. This means that you can reduce the amount of tax you have to pay based on the amount you donated. But now, to claim this deduction when you file your income tax return (ITR), you
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FAQ :
Section 80G of the Income-tax Act, 1961, allows taxpayers to claim a deduction on their taxable income based on the amount they donate to eligible charities or NGOs.
Previously, donation receipts were sufficient. Now, you need a mandatory certificate (Form 10BE) downloaded by the charitable institution from the Income Tax e-filing portal.
The institution must file a statement of donations (Form 10BD) electronically on the Income Tax e-filing portal by May 31st of the financial year following the donation. After filing, they can download the donation certificate (Form 10BE) for the donor.
Donors need to provide their name, address, and identity proof, such as PAN, Aadhaar number, passport number, or driving license number, to the institution for filing Form 10BD.
If the institution fails to file Form 10BD or issue Form 10BE, they may face a daily fee of Rs 200 and a penalty of up to Rs 10,000 or Rs 100,000 under Section 271K.
No, only donations made in money (cash, cheque, or electronic modes) are eligible for deduction under Section 80G. Cash donations exceeding Rs 2,000 are not eligible.
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