Income Tax Section 80G: Income Tax: The Income Tax Department allows taxpayers to save tax under several sections. One of these is Section 80G of Income Tax, under which you can save up to 50 to 100 percent.
This section of income tax is for the taxpayers who donate. Under this, you can claim full exemption of tax on the amount of tax donated.
Under section 80G, all taxpayers resident or non-resident can claim deduction on donation of amount. However, it is important that tax saving can be done only under the old tax regime.
Under section 80G (a), 100% deduction can be made without any limit. Under 80G(b), the amount of 50% can be done without any maximum limit.
Under 80G (c), 100% deduction can be claimed up to a limit. On the other hand, under section (d), the amount of 50 percent can be claimed under a limit.
You can save 100% of the amount by donating to places like National Defense Fund, PM Relief Fund, National Children Fund, Army Welfare.
On the other hand, if you donate to Jawaharlal Nehru Memorial Fund, PM Drought Relief Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation, then up to 50 percent amount will be saved. You can save 50% tax on donating to NGOs as well.
