Donating money to charity can be a great way to not only support a cause you care about but also to save on taxes. Know from the best education NGO in India.

In India, under Section 80G of the Income Tax Act, donors can claim tax deductions for charitable donations made to certain approved organizations. Classic example of a trusted NGO for poor child education is Lycee Trust. 

80G Tax Benefits You Will Get While Donating Money

• There are certain rules when you want to claim tax benefits under Section 80G. The donation must be made in cash or by cheque or draft to a registered charitable organization or trust. The organization must have been approved by the Income Tax Department for tax exemptions under Section 80G.

• The tax benefits available under Section 80G vary depending on the type of organization and the amount of donation. For donations made to certain organizations such as the Prime Minister's National Relief Fund or the National Defence Fund, the entire amount donated can be claimed as a tax deduction. For other organizations, the tax deduction is limited to 50% of the donation amount.

• In order to claim tax benefits for a donation under 80g, the donor must get a receipt. This will be provided by the organization where the donation has been made. The receipt should include the name of the organization, its registration number, and the amount of donation. The donor can then claim the tax deduction by attaching the receipt to their tax return.

• It is important to note that there are certain restrictions. For instance, on the amount of donation that can be claimed as a tax deduction under Section 80G. In any financial year, a person can claim a tax deduction of up to 10% of their gross total income.

• Be careful who you donate to since gifts to organisations that the income tax department has not notified for this purpose will not be eligible for a tax deduction. Additionally, only donations to a specific list qualify for a 100% tax deduction, including those made to notified entities. To learn more, keep reading.

Wrapping It Up

Donating money to charity can be a great way to give back to society. Get in touch with Lycee Trust today and start making donations. What’s better than donating to child education NGO India and reducing tax liability? It is important to obtain a receipt for the donation and to keep in mind the restrictions on the amount that can be claimed as a tax deduction. Lycee is the best NGO in India to donate money that also helps you save money on taxes.