Donating for Social Cause and
Saving on Tax under Section 80G
As per the Income Tax Act, 1961, not all donations are subject to tax deductions. If you have donated to an NGO that is not certified under Section 80G of the Income Tax Act, you may not be entitled to tax benefits. To save on tax, ensure that the NGO you have chosen for donating meets this criterion.
What is Section 80G?
The Income Tax Act, 1961 encourages charitable deeds. This government body offers donation tax benefits to donors under Section 80G. NGOs and Trusts having a 12A certificate are entitled to 80G certification. A 12A registration is a one-time exemption obtained by a Trust/NGO. The IT Department intensely scrutinizes every detail before granting such a certification.