Section I: Income Tax and Your Career

• Ques: Reduce tax liability by making donations
• Ans: Key points:
  • Under section 80G, you can claim deduction if you have made a donation to an approved fund or a charitable institution, such as, Prime Minister’s Relief Fund, National Children’s Fund, or CRY. This deduction is over and above other deductions such as 80C.
  • Some donations like Prime Minister’s Relief Fund, Approved University or educational institution, earthquake relief funds, national illness assistance fund, national sports fund etc. qualify for 100% deduction from the income.
  • Donations to CRY and Red Cross are not specifically mentioned in the Income Tax Act, but generally donations to these organizations are deductible up to 50% under section 80G.
  • You should always check with the organization about the eligibility of donation under section 80G.
  • Generally you should donate only up to 10% of your gross total income.