"Maximize Tax Savings with Smart Donations!"

The article explains tax deductions under Section 80G of the Income Tax Act, detailing four donation categories based on deduction percentage and qualifying limits, along with eligible payment modes like cheque, draft, or online transfer. It emphasizes that cash donations above Rs. 2,000 are ineligible, urging donors to follow guidelines for maximum tax benefits.


Donation Category Eligibility for Deduction Percentage of Deduction Mode of Payment
Donations with 100% Deduction (Without Qualifying Limit) Donations made to specified funds like PM Relief Fund, National Defence Fund, etc. 100% Cheque, Draft, or Online Payment (Cash donations above Rs. 2,000 are not eligible)
Donations with 50% Deduction (Without Qualifying Limit) Donations to certain charitable organizations specified under Section 80G. 50% Cheque, Draft, or Online Payment (Cash donations above Rs. 2,000 are not eligible)
Donations with 100% Deduction (With Qualifying Limit) Donations to organizations promoting family planning or other specified institutions. 100% of 10% of Adjusted Gross Total Income Cheque, Draft, or Online Payment (Cash donations above Rs. 2,000 are not eligible)
Donations with 50% Deduction (With Qualifying Limit) Donations to other charitable organizations not specified under the 100% category. 50% of 10% of Adjusted Gross Total Income Cheque, Draft, or Online Payment (Cash donations above Rs. 2,000 are not eligible)

Section 80G of the Income Tax Act allows salaried employees to claim tax deductions on eligible donations made to specified funds and charitable institutions. To avail of these benefits, ensure the donation is made through accepted payment modes and obtain a receipt containing the name, PAN number of the trust, and registration number under Section 80G.

It's important to note that cash donations exceeding Rs. 2,000 do not qualify for deductions under Section 80G. Therefore, donations should preferably be made through cheque, draft, or online modes to maximize tax-saving benefits.

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