Giving on Donatekart is now another way of saving on tax!
Each year about 8.4 crore people in India pay the income tax. When it’s time to file returns, everyone starts looking for ways to save on their payable tax. Of course, there are ways such as home loan, investments, health insurance, etc. to achieve the same.
Another way you can save tax while doing some good work is by using the deductions available under Section 80G of the Indian Income Tax Act. Section 80G of the I-T Act allows donations made to specified relief funds and charitable institutions as a deduction from gross total income before arriving at taxable income.
What is section 80G?
Section 80G of the Indian Income tax Act provides a 50% exemption from paying tax for donations made to charitable organisations or a noble cause qualifying under the act. These exemptions are meant to endorse the upliftment of vulnerable communities of our society.
This section ensures tax deductions on donations with a qualifying limit not exceeding 10% of adjusted gross total income. At the time of filing income tax returns in India, the donor should be able to claim the exemption.
What information should the donor have at the time of filing IT returns under section 80G?
At the time of filing IT returns, the donor will need to furnish a few information pertaining to the organisation they’ve donated to. Deductions under section 80G can be claimed by all taxpayers who have made donations during the financial year.
The following information is needed at the time of filing returns.
- Name and address of the organisation
- Name of the donor
- The amount donated: both in words and figures
- The 80G receipt provided by the organisation at the time of making donations. It includes their registration number along with its validity and PAN number.
How will donating on Donatekart will help you save on tax?
Donatekart can now give tax exemption to its donors in India under Section 80G of the Indian Income Tax Act. Donors who donate products on our platform for any cause will be eligible for a tax deduction on the total paid amount, given it doesn’t exceed 10% of their adjusted gross total income.
How to claim 80G when you donate on Donatekart?
Right after the donation is made, donors will see the ‘GET 80G’ button on the ‘payment success’ page to download the 80G receipt. Alternatively, they can also get the receipt by clicking the ‘GET 80G’ button in their ‘payment success’ mail. It will take them to a form and upon filling it, let them download the receipt. This way they can get the receipt for their donations at their own convenient time.
How is payment receipt different from 80G receipt ?
Payment receipt is an acknowledgement of a donation provided for donors’ reference.This is sent as an attachment in the automatic payment success email.
80G receipt is an optional tax exemption receipt provided to donors so that they can claim tax benefits for their donations.
Since our inception, we take pride in being the most transparent and trustworthy crowdfunding platform in the country. The 80G exemption is another step to inspire our donors to continue helping the most vulnerable and marginalised communities across the country.
