What Is The Limit For Deduction Under Section 80g?

To spread the idea of giving to the most vulnerable and poor, The Indian Government regularly solicits public donations. The donation could be claimed as a donation tax deduction limit under Section 80G.

There are a variety of government organizations and non-governmental organizations that help improve the lives of the poor. You can donate to these organizations to ensure that your money is put to the best reasons.

To motivate people to encourage people to donate, the Government also provides tax deductions as per Section 80G for the amount given. Therefore, the amount donated by an individual can be claimed as a donation tax deduction limit when he files the income tax return.

Maximum donation tax deduction limit under Section 80G

In certain cases, there is no upper amount that you can claim on contributions made for donation tax deduction limit under Section 80G. However, in certain instances, deductions for donations under Section 80G are restricted to up to 10% of adjusted Gross Total income earned by the donor. The calculation as to whether a deduction is permissible without a limit or is restricted by 10% net adjusted income is contingent on the kind of institution to which the money was donated.

Deductions that have a maximum limit of 10 percent of the Adjusted Gross Total Income

The deductions below are allowed up to a maximum that is 10% of your adjusted gross income. So, for example, if your Adjusted Total Income was the sum of Rs. 9,00,000 (computed using the method mentioned above) you would be allowed to deduct a maximum amount of just 10 percent, i.e., Rs. 90000 if donations are made to any of the listed charities.

Donations that are eligible for the full deduction

Donations to the Government or any local body, organization, or association are used to support family planning.

The amount that a business to the Indian Olympic Association or any other organization notifies the Central Govt to establish infrastructure for games and sports or support games and sports.

Donations that qualify for a 50% Deduction

The following donations are permitted with a 50% deduction subject to a qualifying amount. In the same way, as mentioned above, if you make a donation to any of the following charities, you are eligible to claim deductions for any amount up to. 90,000. Furthermore, the deduction permitted could be only 50 percent of 90,000, i.e., Rs. 45,000

Donation to any authority established within India by or under any law for meeting the requirement for housing or to aid in the planning, development, or improvement of towns, cities, and villages, or both.

Any corporation established through any of the Central and the State Govt for promoting the rights of those who belong to the minority community.

Any mosque, temple, temple, gurdwara, church, or any other location notified by the Central Govt to be of historical, archaeological, or artistic significance for the renovation or repair.

Well, this post might have helped you in understanding what donation tax deduction limits are under Section 80 G.

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