Donate and Save Tax under sec 80G of Income Tax
How to Calculate and Claim Deduction under 80G
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FAQ. Your Questions on Sec. 80G Answered.
Income tax department allows reducing of the taxable income of the taxpayer in case the taxpayer makes certain investments or eligible expenditures allowed under Chapter VI A.
Another way you can save tax while doing some good work is by using the deductions available under Section 80G of Income Tax Act. Section 80G of the I-T Act allows donations made to specified relief funds and charitable institutions as a deduction from gross total income before arriving at taxable income.
Eligibility of Individuals and NGOs for Donations under 80G
Government approved (registered) trust/ organisations are eligible for 80G deductions. You can easily check the registration of trust/ organization through the Income Tax Website. Simply visit www.incometaxindia.gov.in & check for the trust/organization.
All taxpayers (individuals/companies/Hindu Undivided Families) are eligible to make donations to charity under Section 80G
What is the payment mode of donation for availing the benefit under Section 80G?
In case you wish to claim income tax deduction benefit in respect of the amount you have donated to eligible institutions you need to adhere to the following :
- No deduction or income tax benefit shall be given for donations made in kind such as donation of clothes, food etc.
- No tax benefit for cash donations exceeding Rs 2000 shall be allowed to the taxpayer.
- The payment for higher amount (exceeding Rs 2000) should be made through cheque, net banking, demand draft or other banking channels.
Can a tax deduction under 80G be claimed on all sources of income like capital gains, salary income, rental income, etc
You can claim deduction on all types of income except those incomes which are taxable at special rates. For e.g. short term capital gains, long term capital gain etc.
How to claim deduction under Section 80G in Income Tax Return?
For claiming deduction u/s 80G, you have to submit the following details in your Income Tax Return (ITR):
• Full Name of the Donee Institution
• Amount of contribution made in the corresponding financial year
• PAN Number of Donee
• Address of Donee
How to Calculate the amount of deduction under 80 G?
• Check the category in which the fund/charitable institution falls (100% or 50% deduction with or without maximum / qualifying limit).
• When the payment is made to first category then there is no need for further calculations, just claim 100% or 50% of the donation amount subject to taxable income.
• When payment is made to the second category you need to first find out the maximum/qualifying limit. The maximum / qualifying limit is 10% of the “adjusted gross total income”.
• Now use this formula to arrive at the amount of deduction =
a) Gross Qualifying limit = All donations made to category 2
b) Net Qualifying limit = This is 10% of the “adjusted gross total income”.
c) Amount Deductible = 100%/50% of the donation amount subject to qualifying limit.
Donate Online to SERUDS NGO
Ways to donate online
The account name is “SERUDS”
Non-FCRA Bank Accounts – (donate money in Indian rupees only) – Domestic Donations:
|Name of the Bank||Account No.||IFSC CODE|
|State Bank of India||30737287674||SBIN0003185|
* Please send your address to avail 80G Tax Exemption benefits from our charitable nonprofit organization under section 80G of Income Tax, 1961 Act.
Foreign Contributions only
FCRA Bank Account – Donate from outside India:
ACCOUNT NAME: SERUDS
|Name of the Bank||Account No.||IFSC / SWIFT|
|State Bank of India||30||
IFSC CODE: SBIN0000691
SWIFT CODE: SBI-NIN-BB-104
Bank Address for Foreign Donations:
Name of the Branch: New Delhi Main Branch (NDMB)
Address of Branch: FCRA Cell, 1st Floor, 11, Sansad Marg, New Delhi-110001
Branch Code: 00691