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  Tax Exemptions for Donations

Donations for charitable purposes attract tax benefits. If you give to a charitable organisation, not only is your donation exempt from Income Tax in the hands of the organisation, but you can earn a tax deduction too. For this, the organisation must be certified under 80-G or have projects approved under various sections of the regulations which offer tax benefits to donors.

Your donations to organisations that have the following tax exemption certifications are eligible for tax benefits :

80 G: 50% of your donation can be set off against from your taxable income.

35AC : 100% deduction can be claimed for donation for certain projects approved under this section.

35(1)(iii) : NGOs engaged in research in social sciences can be approved for tax exemption under this section. People who have business or professional income can claim 125% deduction of their donation and others can claim 100%. This deduction will be withdrawn after 31 March 2005.

35CCB : NGOs engaged in conservation of natural resources and aforestation are given approval under this. 100% deduction may be claimed by donors.