Understanding tax deductions under section 80g

Tax deductions under section 80g of the income tax act, of 1961, allow taxpayers in India to claim deductions for donations made to eligible charitable organizations. Donors can receive either a 50% or 100% deduction, depending on the organizations registration status. To qualify, organizations must be registered under section 80g and provide valid receipts that include the organization’s name and registration number. This provision not only reduces the donors taxable income but also encourages charitable giving, supporting various social causes such as education, healthcare and poverty alleviation. By promoting philanthropy, section 80g plays a vital role in fostering a culture of social responsibility in India.