How to get a tax rebate on my income by donating to an NGO?
You can get a tax rebate on your income by donating to an eligible NGO in India.
You can check their qualification and authenticity by checking the 80G certification and their involvement in activities like education, religious or society welfare.
Here is a list of eligible entities that can claim a deduction under Section 80G:
Individual Person filing ITR
Companies and Firms
Hindu Undivided Family
Non-Resident Indian
Qualifications Required for Deduction under Section 80G
It is very important to know that tax exemption under 80G is not available for individuals who opt for the new tax regime. Deduction limit and eligibility criteria also vary with the type of institution.
Donations should be made from taxable income, which means that if you are making donations from non-taxable income sources, you do not qualify for it.
For tax-exempt value, donations should be made in cash or cheque. In other formats, it does not qualify for deduction.
After donation to an NGO, you must take a valid receipt to make a claim and keep it with you always as proof to avoid any kind of notice or penalty.
There are various provisions of eligibility for 50% or 100% deduction, so you must check the contribution mode.
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