Section 80G of the Income Tax Act, 1961, allows individuals and businesses in India to claim tax deductions on donations made to certain approved charitable organizations. This provision encourages taxpayers to contribute to social causes by offering a reduction in their taxable income, thereby lowering their overall tax liability. Donations eligible under Section 80G must be made to organizations registered with the government, which are authorized to issue donation receipts. The amount of deduction can vary, with some donations eligible for 100% deduction and others for 50%, subject to specific limits and conditions. For small business owners and first-time entrepreneurs, understanding Section 80G is useful for planning tax-efficient charitable contributions as part of their financial management and compliance. Claiming deductions under this section requires proper documentation, such as receipts from the donee institution, to be submitted during income tax filing. For more detailed guidance on tax deductions and compliance, you can visit https://services.fintax24.in/5-income-tax.
Section 80G