If a person donating any amount (upto the extent of 10% of his/her gross total income) to any charitable institution to which this section applies, He/She will be entitled to get deduction of 50% of total donation amount from his/her total taxable income. By this he may save tax upto 15% amount of total donation amount as given to above charitable institution.
Person Gross Total Income Rs. 12,00,000/-
Total Tax Liability (AY 2017-18) 190550/-, if there is no deduction and no donation
Now if donates Rs. 1,20,000/- to Sewa Bharti
His Total Tax Liability for the Assessment Year 2017-18 will be Rs. 172010/-
Total Saving in Tax Will be Rs. 18540/- i.e. 15.45% of Total Donation Amount.
Sewa Bharti , Indore
34,Tilak Path, (Behind Nagpur Nagarik Sahakari Bank Limited)
Rambagh, Indore -452007
Office timings 11 AM to 6 PM (Sunday closed)
Phone Office - 0731-2548483
89- 89 - 822 - 899