Section 80G: Tax Benefits for Giving - Donation Schemes for National

A Comprehensive Guide to Section 80G: Schemes, Subsections, and Investment Opportunities

Section 80G is one of the most popular tax-saving provisions under the Income Tax Act in India. It provides a wide range of investment opportunities and expenses that are eligible for tax deductions. In this article, we will take a comprehensive look at Section 80G, including its subsections, schemes, and investment opportunities.

Section 80G

Section 80G of the Income Tax Act has several subsections that outline the specific types of investments and expenses that are eligible for tax deductions. These subsections include:

• Subsection of 80G

  1. Section 80G(1)

     Section 80G(1) offers tax deductions for donations made to specified funds and charitable institutions. The donations made to these organizations can be claimed as a deduction of either 100% or 50% of the donated amount, depending on the organization's classification. To claim a deduction under Section 80G(1), the organization must be registered under the Income Tax Act, and the donor must have a receipt for the donation.

  2. Section 80G(2)

     Section 80G(2) offers tax deductions for donations made to specified organizations, trusts, and institutions. The donations made to these organizations can be claimed as a deduction of either 100% or 50% of the donated amount, depending on the organization's classification. To claim a deduction under Section 80G(2), the organization must be registered under the Income Tax Act, and the donor must have a receipt for the donation.

Things to Remember While Claiming Deductions under Section 80G:

Here are some things to keep in mind while claiming deductions under Section 80G:

• 1. Make sure the charitable organization is registered under the Income Tax Act.

  2. Keep a receipt for the donation made to the charitable organization.

  3. Check the classification of the charitable organization to determine the percentage of deduction available.

  4. Ensure that the deduction is claimed in the same financial year in which the donation was made.

Maximizing Your Tax Benefits: Schemes Covered by Section 80G

Now, let's take a look at some of the popular investment schemes under Section 80G.

• Schemes List

  1. National Relief Fund

     It is a fund set up to provide financial assistance to families affected by natural calamities like floods, earthquakes, etc.

  2. Prime Minister's National Relief Fund

     It is a fund set up to provide financial assistance to families affected by natural calamities and also to support families of deceased government officials.

  3. National Children's Fund

     It is a fund set up to support the welfare of children in need of care and protection.

  4. National Foundation for Communal Harmony

     It is a fund set up to support the education, healthcare, and welfare of victims of communal violence.

  5. Swachh Bharat Kosh

     It is a fund set up to support the Swachh Bharat Abhiyan, a nationwide cleanliness drive.

  6. Clean Ganga Fund

     It is a fund set up to support the conservation and rejuvenation of the river Ganga.

  7. National Sports Fund

     It is a fund set up to support the development of sports in India.

  8. National Cultural Fund

     It is a fund set up to support the promotion and preservation of Indian culture.

  By donating to any of these funds, you can claim tax deductions under Section 80G of the Income Tax Act. The amount of deduction allowed varies depending on the specific fund and the percentage of the donation eligible for deduction.

Investment Opportunities under Section 80G

Donations made to eligible charitable organizations can offer tax deductions under Section 80G. Here are some investment opportunities under Section 80G:

• Investment List

  1. Donations to eligible charitable organizations:

     Donations made to eligible charitable organizations can offer tax deductions of either 100% or 50% of the donated amount, depending on the organization's classification.

  2. Donations to the Prime Minister's National Relief Fund:

     Donations made to the Prime Minister's National Relief Fund can offer tax deductions of 100% of the donated amount.

  3. Donations to the National Children's Fund:

     Donations made to the National Children's Fund can offer tax deductions of 100% of the donated amount.

  4. Donations to the National Foundation for Communal Harmony:

     Donations made to the National Foundation for Communal Harmony can offer tax deductions of 100% of the donated amount.