Question 1

What is the difference between 100% and 50% deduction under Section 80G?

Accepted Answer

**100% deduction** means the entire donation amount is deductible from taxable income (e.g., PM CARES Fund, National Defence Fund). **50% deduction** means only half the donation is deductible (e.g., PM National Relief Fund, charitable hospitals). Some donations also have a **10% of income limit** while others are unlimited. Always check which category your chosen organization falls under.

Question 2

What is the 10% of Adjusted Gross Total Income (AGTI) limit?

Accepted Answer

For certain donation categories, the total deduction cannot exceed **10% of your AGTI**. AGTI = Gross Total Income minus deductions under Chapter VI-A (80C, 80D, etc.). For example, if your AGTI is Rs 10 lakh, your 80G deduction for 'limited' category donations cannot exceed Rs 1 lakh, even if you donated more.

Question 3

Can I donate in cash and claim 80G deduction?

Accepted Answer

Cash donations above **Rs 2,000 are NOT eligible** for 80G deduction. Only the first Rs 2,000 of a cash donation qualifies. For larger donations, always use **online transfer, cheque, or demand draft** to claim the full deduction. This rule was introduced to promote digital transactions and maintain audit trail.

Question 4

How do I verify if an organization has valid 80G registration?

Accepted Answer

Before donating, verify the organization's **80G certificate** which should show: registration number, validity period, and approved category (50%/100%, limited/unlimited). You can verify the registration on the **Income Tax Department website** or ask for a copy of the 80G certificate. The certificate must be valid for the financial year of donation.

Question 5

What documents do I need to claim 80G deduction?

Accepted Answer

Keep these documents: (1) **Donation receipt** with date, amount, and organization details, (2) **80G certificate copy** with registration number, (3) **Organization's PAN** (mandatory for donations above Rs 2,000), (4) **Payment proof** (bank statement, cheque copy, online receipt), (5) **Form 58** if applicable. Without proper documentation, your deduction may be disallowed during scrutiny.

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