To avail tax exemption under Income Tax Act 80G, you will have to upload the donation receipt certificate issued by the concerned organization while filing the income tax return. Without this, tax exemption will not be available.
If you donate to any charitable institution or religious institution and non-governmental organizations, then you can take advantage of tax exemption under Income Tax Act 80G. For this, you will have to upload the donation receipt certificate issued by the concerned institution while filing income tax return. Without this, tax exemption will not be available. It is also worth noting that 50 to 100 percent tax exemption can be availed according to the categories of entities.
Have to give 10BE certificate
As per the Income Tax rules, any charitable or religious institution or NGO has to report the donations received during the entire financial year to the Income Tax Department. Also, the person making the donation has to issue a Form 10BE certificate. With this, the Income Tax Department ensures that the donations received by the institution and the tax exemption claimed by the income tax payer match or not. Hence Form 10BE certificate is required as proof of tax exemption while filing ITR.
No deduction for cash donation
Taxpayers can claim tax exemption for the amount donated in cash, check or online mode. However, the exemption cannot be claimed for cash donations exceeding Rs 2,000. Income tax department allows exemption only for check or online payment.
Benefit in old tax regime only: Tax exemption on the amount of donation can be claimed only under the old tax regime. Therefore, the income tax payers will have to opt for this arrangement at the beginning of the financial year itself. Will not be able to avail this deduction in the new tax regime.
Income Tax Department has to provide the following details: Form 10BE can be filed electronically through Electronic Verification Code (EVC) or Digital Signature. It is mandatory to have the name, address, PAN number and Aadhaar number of the donor in the form. Along with this, it is also necessary to have the registration number and stamp of the concerned institution. The form should be filed on or before 31st May of the financial year in which the donation is made.
100 and 50 percent tax exemption: The Income Tax Department has divided trusts, institutions into categories to claim 100 or 50 percent tax exemption. A tax exemption of 50 percent can be obtained for donating to any religious institution or charitable institution. At the same time, this limit is 100 percent for a government organization or charitable organization notified by the government related to social work or social welfare.