{"id":16476,"date":"2019-05-08T19:09:34","date_gmt":"2019-05-08T13:39:34","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=16476"},"modified":"2020-12-19T12:06:43","modified_gmt":"2020-12-19T06:36:43","slug":"deduction-under-section-80g-complete-eligibility-benefits","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/deduction-under-section-80g-complete-eligibility-benefits\/","title":{"rendered":"Deduction Under Section 80G – Complete Eligibility & Benefits"},"content":{"rendered":"

The Income Tax Act of 1961 allows certain deductions to taxpayers. These deductions are allowed to reduce the tax liabilities of taxpayers. The section 80G of this act addresses such deductions. In this article, we will discuss the deduction under section 80G<\/strong> that can be availed by the taxpayers.<\/p>\n\n\n\n

The\ndeduction is allowed from the total income of the assessee and tax is\ncalculated on the net income after deduction. Let us understand both of the\nsections individually.<\/p>\n\n\n\n

What Does Deduction under Section 80G Relate To?<\/strong><\/h2>\n\n\n\n

Under\nSection 80G tax rebates are allowed to taxpayers for donations made to\ncharitable organizations. The limit on the amount of deduction depends upon the\norganization to which donation is made. <\/p>\n\n\n\n

This\ndeduction is allowed to encourage donations on the part of taxpayers for the\nbenefit and development of the society. <\/p>\n\n\n\n

\"deduction<\/figure><\/div>\n\n\n\n

Benefits of Deduction Under Section 80G<\/h2>\n\n\n\n

The\nsection 80G of Income Tax Act 1961 serves dual benefits for society. Primarily\nit reduces the tax liability of the taxpayers and provides them with a chance\nto invest that money in charitable and social development cases. <\/p>\n\n\n\n

On\nthe other hand, it acts as a pillar for activities carried out for social\ndevelopment. Donations from taxpayers create a large fund for social\norganisation. <\/p>\n\n\n\n

Owing\nto such donation, these organisations can carry their work of social\ndevelopment.<\/p>\n\n\n\n

What is the Applicable Limit of Deduction under Section 80G?<\/strong><\/h2>\n\n\n\n

The limit of deduction allowed to taxpayers under this section is basically divided into 4 categories as under:<\/p>\n\n\n\n

1. 100% deduction without any eligibility:<\/strong><\/h3>\n\n\n\n

100%\ndeduction is allowed against a donation made to specific government-specified\ncharitable organizations. One can avail the whole amount as a rebate, which has\nbeen paid as a donation.<\/p>\n\n\n\n

Some\nof the government specified charitable organizations are as under:<\/p>\n\n\n\n