How section 80G helps save tax through donations to NGOs.

 What Documents are required to Claim tax deduction under Section 80G?

Receipt: To claim deduction u/s 80G, you need a donation receipt to back your claim. The receipt should provide details like Name, Address, PAN, registration number of the trust & the name of the donor as well as the amount of donation and mode of payment.

Registration No. of Trust on Receipt: Every trust registered with the IT department u/s 80G has a Registration Number. It is mandatory to mention that number on the receipt. This registration is valid for a limited period only. Hence, the receipt must mention the registration number and the validity period.

Photocopy of 80G certificate: While getting a receipt, you should insist on a photocopy of the trust’s 80G registration certificate.

How much deduction is allowed under section 80G?

For individuals, the deduction under Section 80G can be claimed on the amount donated to eligible institutions or funds up to a maximum of 50% or 100% of the donated amount, depending on the institution or fund to which the donation has been made.

For companies, the deduction under Section 80G can be claimed on the amount donated to eligible institutions or funds up to a maximum of 50% or 100%of the donated amount. However, it is important to note that the limit on the deduction for companies is subject to certain conditions and restrictions.

Additionally, this deduction under Section 80G can only be claimed by taxpayers who have opted for the old tax regime.

More details:

https://tax2win.in/guide/80g-deduction-donations-to-charitable-institutions

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