If you make daily donations to charities or NGOs, you can avail tax exemption benefits that come with such donations under Section 80G of the Income Tax Act, 1961. From now on, while filing Income Tax Return (ITR), you will need a certificate like a TDS to avail tax exemption.
This certificate can be downloaded by the organization or NGO receiving the donation from the e-filing portal of the Income Tax Department. which you have donated.
As per the rule of Section 80G of the Financial Act 2020, the donation certificate verifies that the money donated by you has been received by the NGO and you are eligible for it. Explain that till the financial year 2020-21, individuals who donated could claim deduction only on the basis of donation receipts issued by the institutions and such donation certificate was not required. But now you have to take a certificate from the Income Tax Department to get tax exemption.
With increasing technology in the country, the Income Tax Department has standardized the process to ensure that donations received by charities are matched one-to-one with tax exemptions claimed by taxpayers. In this way, the charitable institution or NGO receiving donations will have to give details of all donations received in a financial year to the Income Tax Department from the financial year 2021-22 and separate certificates will have to be issued to the donors, which will allow deduction only on the basis of this certificate. can claim.
IT department will have to give these details
The recipient organization or NGO approved by the Principal Commissioner or Commissioner of Income Tax Department will have to file the details of donation in Form 10BD electronically on the e-filing portal of the Income Tax Department. Form 10BD can be filed electronically through Electronic Verification Code (EVC) or digital signature. The details of donation in Form 10BD should be filed on or before 31st May of the financial year in which the donation is received.
These documents will have to be given
To enable the Donor Institutions to file the correct details of the donation with the details of the Donor, the Donor, i.e., you must furnish the name, address and identity proof to the Donor Institution. A copy of PAN and Aadhaar is preferable, but it is necessary to provide this information in Form 10BD.
- Permanent Account Number (PAN)
- aadhaar number
- tax identification number
- Passport number
- Elector’s Photo ID Number
- driving license number
- Ration Card No
