Section 80g of the income tax act in India

Section 80g of the income tax act, of 1961, in India, provides tax deductions for individuals and businesses donating to eligible charitable organizations. This section encourages philanthropy by allowing donors to claim deductions of either 50% or 100% of their contributions, depending on the organization’s registration status. To qualify, companies have to be registered below section 80g and provide legitimate receipts to donors which consist of important details like the agency’s name and registration range. Donations to positive funds which include the prime minister’s national relief fund, qualify for a 100% deduction. This provision no longer reduces the donor's taxable profits however additionally complements the credibility of charitable businesses, fostering a tradition of giving and assisting numerous social causes in India.