Income Tax Department: If you have done this in the Corona epidemic, you will get the benefit of tax exemption

- For 100% discount on donations, Form-58 has to be filled and submitted. Apart from that, the registration number of the trust has to be given

New delhi date. Monday, August 30, 2021

Many people have lost their livelihoods during the Corona epidemic. It is our moral responsibility to help those in need. Because of this anyone who pays tax can avail exemption on such contribution (donation).

According to tax experts, donations are tax deductible under the Income Tax Act and these benefits are available under certain rules and regulations. This requires donations in a pre-determined form. You will also get a tax deduction if you have donated through an organization or company. According to him, donations need to be made financially.

You cannot donate more than Rs 2,000 in cash. Donations in excess of this limit require a check or draft. Have to use networking or any other medium.

Discount up to 100 percent

Can be taken as 50% or 100% deduction of the amount contributed. A limit has been set for certain organizations to claim deductions on donations made. It depends on the taxpayer's income.

The Prime Minister can get a 100 per cent discount on donations made to the National Relief Fund. However, donations made for the renovation of a proposed temple, mosque, gurudwara, church or any such place of worship are subject to a 50 per cent deduction.

These documents are required

- The organization to which the donation is being made must give a receipt to the donor. It serves as a documentary evidence to claim a tax exemption.

- In addition to the donation amount, the name, address and page number of the donor should be recorded in the given receipt.

- For 100% discount on donations, Form-58 has to be filled and submitted. Apart from that, the registration number of the trust has to be given.