Murugesan (Asst. Manager - Finance) (180 Points)12 June 2018
What is the IT exemption for the donation paid to the orphanage by an individual
Under Section 80-G of Income Tax Act, you are eligible for income tax deductions only for the amount which has been donated.
The tax deduction limit under Section 80G of ITA is either 50% or 100%. It entirely depends on the charitable institution to which the amount is donated.
CA Sunil Kumar
Replied 12 June 2018
Charitable organizations with 100% deduction without any qualifying limit:
Charitable organizations with 50% deduction without any qualifying limit
For certain donations, the aggregate deduction limits to 10 per cent of the ‘Adjusted Gross Total Income’. Thus, in such cases, even if you are donating funds eligible for deduction, it would be capped at 10 per cent of the Adjusted Gross Total Income – Gross total income minus long-term capital gain along with short term capital gain and all deduction under Section 80CCC to 80U except any deduction in this section.
Donations to the following are subjected to 10% of Adjusted Gross Total Income:
For 100% Deduction
For 50% Deduction