What is section 80G of Income Tax Act?
Section 80G of the Income Tax Act provides taxpayers with the ability to claim a deduction for donations made to certain organizations and foundations.
In this section, income deduction from taxpayers who make the necessary formation or income is explained. It is allowed to deduct from the gross income of the taxpayer before calculating the tax liability.
The amount of discount that taxpayers can benefit from depends on the type of school or foundation the donation is made to. Donations made to some foundations and schools receive a 100% discount, while others receive a 50% discount.
In order for taxpayers to claim this discount, they must obtain a receipt from the institution or organization to which the donation is made. The receipt must include the name and address of the school, the grant amount, and the school's registration number under Section 80G.
It should be noted that not all organizations and foundations are eligible for deduction under Section 80G. The company or fund must be registered under the Income Tax Law and approved by the Income Tax Department to be eligible for the deduction.