Tax Deduction under Section 80G of Income Tax Act for Donations to Trueheaven Foundation
As an incentive for charitable contributions, the Government of India offers tax deductions under Section 80G of the Income Tax Act. Donations made to institutions like Trueheaven Foundation qualify for tax benefits as per the applicable provisions.
Under Section 80G, every individual, Hindu Undivided Family (HUF), company, and partnership firm is entitled to deduction on the donation made, including non-resident Indians. It provides an opportunity to save taxes while contributing towards a meaningful cause.
According to the Income Tax Act, while computing the total income, 50% of the donation made to an institution covered under Section 80G (such as Trueheaven Foundation) is eligible for deduction, subject to 10% of the adjusted gross total income.
Adjusted gross total income refers to the gross total income minus exemptions and deductions under other provisions of Chapter VIA of the Income Tax Act.
Mode of Payment and Eligibility
Donations can be made via cheque, demand draft, or online transfer. Deduction under Section 80G is available for cash donations only up to Rs. 2,000. Therefore, it is recommended to donate via cheque or online modes to qualify for a full tax deduction.
Note: Trueheaven Foundation does not accept any cash donations.
Approval for Section 80G
For an NGO to qualify under Section 80G, it must be registered under the Societies Registration Act, The Companies Act (Section 8 / Section 25), or the Indian Trusts Act, and it must fulfill the conditions laid down in Section 80G(5) of the Income Tax Act. Trueheaven Foundation complies with these statutory requirements and is duly registered to provide 80G tax benefits to its donors.
Documentation for Claiming Deduction
As per Clause (viii) and (ix) of sub-section (5) of Section 80G introduced from 1 April 2021, all approved institutions are required to:
- File a Statement of Donation Received (Form 10BD) containing details of donors and donations received.
- Issue a Certificate to the Donor (Form 10BE) containing details of the donee, donor, and donation amount, on or before 31st May following the financial year in which the donation is received.
The deduction under Section 80G shall be available to the donor only on the basis of the Statement of Donation (Form 10BD) filed by the organization.
Trueheaven Foundation will issue the 80G Tax Exemption Certificate (Form 10BE) to donors with all required details. Based on the Statement filed by Trueheaven Foundation (in Form 10BD), the donation details will appear in the donor’s Income Tax Return for claiming the deduction.
Conclusion
More people are becoming socially aware and willing to support healthcare and compassion-oriented initiatives. Trueheaven Foundation has been working towards providing free medicine and funding life-saving medical treatment for the underprivileged. Through our transparent and accountable structure, donors not only receive a significant tax rebate under Section 80G but also experience the satisfaction of saving a life and contributing to the well-being of society.
Your support enables us to ensure no one is denied treatment due to lack of funds.
Donate to Trueheaven Foundation and help us deliver free medicines and medical care to those who need it most.