TAX REBATE ON DONATION

Section 80 - G : Deduction in respect of Donations to certain charitable institutions

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.

Illustration :

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.

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