Tax Benefits of Donating for a Good Cause Under Section 80G of Income Tax Act
Charitable giving is an important part of society. It is the social responsibility of an individual who is in a position to donate and make a difference in the lives of underprivileged people. Donating for a good cause is not new in Indian culture; it has existed for a very long time when people donated food, money, and other resources to those in need. However, today, organizations are working for the benefit of poor people and providing them with well-rounded support. The Indian government also encourages charitable giving by providing a tax deduction under Section 80G of the Income Tax Act on donations to registered NGOs. Here’s what you need to know: What is Section 80G of the Income Tax Act? Under Section 80G of the Income Tax Act, a donation made to a registered NGO or charitable institution is tax deductible. It is important to note that the deduction amount ranges from 50% to 100% of the total contribution that is made to a particular organization. So, all donations are no