Taxexemption.in

Taxes are an unavoidable part of life. But there are some ways to save on taxes, one of which is Section 80g. This section of the Income Tax Act gives taxpayers deductions for donations made towards certain approved funds and charitable institutions. Here's how you can use Section 80g to reduce your tax burden: Firstly, you must make a donation or contribution to one or more eligible organizations listed in Section 80g. This could be done through cash or cheque payments, as well as bank transfers. Donations should be less than 10% of your total income from the previous year in order to qualify for a deduction under this section. It is also important that these donations must be made within the financial year itself.

Section 80g of the Income Tax Act of 1961 grants tax exemptions and deductions to individuals donating money to charitable institutions. This article will detail the benefits of Section 80g, what types of donations are eligible, how to apply for benefits, tax exemption and deduction limits, documentation required and tips and advice on how you can use Section 80g to save on taxes. The first step is understanding the types of donations that qualify under Section 80g. These include contributions made to certain funds or charities such as Prime Minister's National Relief Fund (PMNRF) or any university approved by UGC or any fund set up by a State Government in India. Additionally, donations made towards conservation trusts established by local governments would be eligible too.