80G Tax Exemption (FAQ’s)

Tax Exemption Donation FAQ’s

  1. What is Income Tax Exemption in India? How does it work?
    • Income Tax Exemption is a deduction allowed by law that lowers taxable income, providing relief or reduced tax rates. It encourages economic and socially beneficial activities.

  3. How can I save tax by donating to an NGO?

    • Section 80G of the Income Tax Act allows deductions for donations made to registered NGOs. Submit the donation receipt to avail the deduction.

  4. What is Section 80G of the Income Tax Act?

    • Section 80G permits deductions from taxable income for donations to approved charitable entities.

  5. What tax exemption benefit do I get for donating?

    • Donations above ₹500 to the United Children Foundation qualify for a 50% deduction under Section 80G. Contributing to the United Children Foundation also provides tax deductions.

  6. What is the minimum amount for tax exemption?

    • A minimum donation of ₹500 to the United Children Foundation is required for Income Tax Section 80G exemption.

  7. What is the maximum amount for income tax exemption under 80G?

    • The limit varies by donation category, with some having no set maximum and others up to 10% of the adjusted gross total income.

  8. Do you issue tax receipts, and how long does it take to receive them?

    • Receipts are sent within 10 days of donation.

  9. Is there a tax exemption on cash donations?

    • Cash donations above ₹2,000 are not eligible for 80G certificates.

  10. When can I get a tax exemption certificate?

    • Certificates are generated within 6 days for online contributions and sent within 10 days.

  11. What if the tax receipt is misplaced?

    • Duplicate receipts may not be provided, but a copy of the Income Tax exemption certificate can be sent.

  12. Can NRIs get tax exemption on donations?

    • NRIs holding Indian citizenship and passports are eligible for tax exemption under Section 80G. Provide your Indian PAN Card Number for benefits.

  13. What certificates are required for tax exemption under Section 80G?

    • Documents needed include donation receipts, photocopies of 80G certificate, and the charitable trust’s registration number.

  14. Can I claim tax exemption through my employer?

    • Yes, you can claim deductions through your employer with a certificate stating the donation from your salary.

  15. Does the NGO accept in-kind donations?

    • United Children Foundation does not accept in-kind donations but welcomes volunteers and equipment sponsors.

  16. What are the benefits of donating to NGOs?

    • Claim tax deductions and experience fulfillment by helping those in need.

  17. How is 80G donation calculated?

    • Deduct 50% of the donated amount from taxable salary to calculate the benefit.

  18. What is the limit for donation under 80G?

    • Cash donations up to ₹2,000 are eligible for 80G certificates; amounts beyond this must be in non-cash modes for deductions.