How Much Deduction is Allowed? Benefits of Donations

Section 80G of the Income Tax Act helps taxpayers save tax while supporting good causes.

It allows deductions on donations made to approved charitable organizations.

This section encourages people to give back to society and reduce their tax burden at the same time.

In this blog, we explain Section 80G in simple terms.

You will learn how much deduction is allowed, the benefits of donating, and how to plan your donations wisely.

Understanding Section 80G

Section 80G provides tax relief for donations made to eligible charities and funds.

The government introduced this section to promote charitable giving.

The deduction you can claim depends on:

• The amount you donate
• The type of organization you donate to
• The deduction limit set for that organization

How Much Deduction Is Allowed?

Deductions under Section 80G fall into two main categories:

• 100% Deduction
  Donations to certain approved funds and institutions qualify for a full deduction.
  This means the entire donation amount is deducted from your taxable income.
• 50% Deduction
  Donations to some organizations, such as those involved in rural development or research, qualify for a 50% deduction.
  Only half of the donated amount is allowed as a deduction.

Always check whether the organization is registered under Section 80G before donating.

The Income Tax Department provides a list of approved institutions for reference.

Benefits of Donations Under Section 80G

• Lower Tax Liability
  Eligible donations reduce your taxable income and help you pay less tax.
• Encourages Giving
  Tax benefits motivate individuals and companies to support social causes.
• Social Responsibility
  Donations help fund initiatives that improve lives and support communities.

How to Plan Tax-Saving Donations

• Choose the Right Organization
  Donate only to organizations registered under Section 80G.
  Select causes that match your values.
• Keep Proper Records
  Save donation receipts and certificates.
  These documents are required when filing your income tax return.
• Plan Your Donations
  Spread donations across the year if needed.
  Donate according to your income and tax planning goals.

Narayan Seva Sansthan and Its Social Impact

Narayan Seva Sansthan is a well-known NGO making a real difference.

Founded in 1985, the organization focuses on healthcare and rehabilitation for differently-abled individuals.

By supporting Narayan Seva Sansthan, donors contribute to a meaningful cause and also receive tax benefits under Section 80G.

Conclusion

Section 80G allows you to save tax while helping society.

It combines smart financial planning with social responsibility.

By donating to trusted NGOs like Narayan Seva Sansthan, you not only reduce your tax liability but also help create a more inclusive and compassionate society.