11 March 2022

How can I save tax by donating to an NGO?

Donation not only makes you happy but also lets you donate and save tax. Income tax section 80g under Act’1961 provides income tax exemption to both the charitable trust and the charity donor, provided the NGO meets all the stated rules of the act. For a donor to be able to claim a deduction under section 80G, you need to present the receipt of the donation based on which you can avail the deduction. You are also required to obtain Form 10BE, which is provided to donors by authorised relief funds and NGOs. This form must then be uploaded to the income tax portal along with the other required documents. The details of the donation will be automatically populated under section 80G. The documents that are required generally include the NGO’s registration certificate, receipt of donation, etc.