In this article I will be writing about the tax exemption on donations and how to calculate the maximum eligible amount for the tax exemption. I have received many queries from the readers about the limitation of tax exemption on donation, i thought it is worth writing the another article on the same topic. You can read our previous articles on section 80g in detail. If you have any doubts please post it in the comments section. Subscribe to our future articles here.
Tax Exemption on Section 80G
- Income Tax Exemption and Rules on Gifts
- Income Tax Exemption on Donations
- BUY: Income tax guide for the tax payer
As we know that the donation made to the NGO’s which are registered under section 80G is tax exemption. Please note that many of us thinking that entire amount donated to the NGO’s are tax exempt. That is not fact, there is certain limitation and calculation required to find the eligible amount for the tax exemption.
To avail the tax exemption, the registration of that NGO under section 80G must a valid one. You can check their certificate for the verification.
The following are the rules for find the maximum eligible amount as the tax exemption.
- There is maximum of 50% of the total donation can be exempted. For example, if you are donating Rs.50000, you can exempt up to Rs.25000 from the total income.
- It can not exceed the 10% of your total income. For example, Your total annual income is Rs.500000. You can exempt up to Rs.50000. Even if you have donated more than Rs.50000, that will be ignored.
Summary
I hope this article is useful to understand the maximum amount eligible for the tax exemption under section 80g. If you have any doubts, please post it in the comments section. To get the free updates to your email, please subscribe here. Thank you for reading this article.
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November 23, 2009 at 8:00 am
We will doing in our dasert area leving peopels for drinkiking water for
sami block 100 one handred village. (patan District gujarat State) for this project we are doner for our drinking water plan. please gaidnce our NGO DEEPMALA YUVA WELFARE TRUST have 80 (G) certicite and Pan card and our NGO REGISTER IN 1996 4 June
Presedant
M H JOSHI
January 26, 2010 at 11:51 pm
Hello Sir,
I m a married woman. and my Father donated some amount to a NGO(Rotary club). i want to know that whether i can claim that amount for my tax benefit or not.
Thanks,
Sunayana
March 4, 2010 at 2:51 am
i have total taxable income of 430000 after deductind 100000 under section 80c i want to give donation of 80000 is it possible . 50% of the donation could be exempted from my total taxable income of 430000 pl reply me
April 16, 2010 at 4:42 am
Will I get tax benefit of Rs 50,000 from my total income if I gift to our HUF?
February 14, 2012 at 5:51 am
what ever amount you donate, in that you will be geting 50% tax exmsion under section 80G for ex: 10000 is your donation in that for 5000 you will get tax examption..
October 10, 2012 at 9:34 am
Sir
I have an NGO and I will fill the 80g certification.
What is the benefits of 80g certification in NGO.