As a socially conscious taxpayer in India, you may have made donations to charitable organisations and wish to claim deductions for them while filing your tax return. It's important to understand the provisions and guidelines.
In India, donations made to certain funds, institutions, or organisations are eligible for deductions under Section 80G of the Income Tax Act. The official website of the Income Tax Department features a list of qualifying organisations or alternatively it can be obtained from the respective organisations.
Receipts and Documentation
To claim deductions, it's important to maintain proper documentation. When making donations, ensure that you receive a receipt or acknowledgement from the charitable organisation. The receipt should contain details such as the name and address of the organisation, your name, the donation amount, and the organisation's registration number under Section 80G. Keep these receipts safely as they will serve as evidence when claiming deductions.
Filing Process
- Calculate the Eligible Donation Amount: Determine the total amount of eligible donations made during the financial year for which you are filing your tax return.
- Identify the Appropriate Section: In the tax return form, locate the section that allows you to claim deductions for donations made to charitable organisations. Generally, this section is labelled as "Deductions" or "80G."
- Enter the Donation Details: Provide the necessary information regarding your donations, such as the name and address of the organisation, the donation amount, and the organisation's registration number under Section 80G. Ensure accuracy while entering this information.
- Compute the Deduction: Based on the eligible donation amount, the tax software or the tax return form will compute the deduction automatically. Verify that the deduction is correctly calculated.
- Review and Submit: Before submitting your tax return, carefully review all the details, including the claimed deduction for charitable donations. Ensure that all the information entered is accurate.
