Did you know that now you can claim tax benefits on the money you donate for poor child education? This blog says all about it, so keep reading it till the end. 

Section 80G of the Income Tax Act makes donations a deduction from gross total income. These contributions are generally done to specific charitable organizations as well as relief funds. Before arriving at taxable income, they still remain as tax benefits. Hence, if you are making a donation under 80g, you will surely get some relaxation on taxes.

FAQs On Tax Benefits While Donating Money

• How will I know if I am eligible for the tax deduction?

Deduction under this section is not limited to a particular category of assesses. One can avail of this deduction if he/she makes a donation to NGOs set up by the government. On the other hand, donations made to political parties and foreign trusts do not qualify for enjoying the tax advantages. In case of making a donation to political parties, your deduction will be categorized under section 80GC. 

• What is the form of payment?

You can claim your deduction under 80G only when your donation is made through cheque, cash or digital payment methods. An individual can only ask for a maximum deduction of Rs. 2,000 on payments made in cash. If you have made the payment via cheque or digital method, there is no limit on the deduction amount. One cannot be a part of the tax bearers if they are donating food rations, clothes and so on.

• Donation deduction without upper limit

When the “without upper limit” clause applies to the donation, then the donor can either claim 50% or 100%. And the good news is that there is no limitation. Various trust funds like Prime Minister’s Drought Fund lets the donor claim only 50% of the money donated. 

• What is the percentage of claims?

Claiming 50% or 100% of the amount you have donated is possible. However, the factor to consider here is “with” or “without” the maximum limit. One can claim the amount of money donated as a deduction with or without the upper limit. All you have to do is check the entity to which you are making the donation. According to the Income Tax department, there is a list of organizations that talk about their specific limit of deductions. 

Wrapping It Up

You do not have to worry about your taxes when you donate to top NGOs in India for child education. That’s what Lycee Trust has been offering to its donors all this while. Get in touch with us today as we are the most trusted top poor child education ngo in India.