The government has tightened the rules for claiming tax benefits on charity. Tax benefits can be claimed on donations made to recognized charitable institutions or NGOs. This tax benefit is available under section 80G of the Income Tax Act, 1961.
Now the government has changed the rules for claiming tax benefits under this section. Now a certificate like TDS will be necessary for this. You will have to download this certificate from the e-filing portal of the Income Tax Department. Let us know about it in detail.
What is the new provision?
As per the new provision of section 80G, the donation certificate will be considered as the proof of donation. It has to be downloaded from the Income Tax Portal. Earlier, this certificate was not required to claim tax benefits on donations. This rule was applicable till the financial year 2020-21. The tax benefits can then be claimed with the help of a receipt issued by the institution to which the donation is being made. After that the government changed this rule.
Must download donation certificate
The Income Tax Department has made rules for claiming online tax benefits and other benefits. Now the process of claiming tax-benefit on donations under section 80G has also been made online. Now donations received by charitable institutions are matched with claims made by taxpayers.
For this, it is necessary to put the details of all the donations received by the charitable organization or NGO in a financial year on the website of the Income Tax Department. Apart from this, it is necessary to issue a separate certificate to the person doing charity.
Donation statement has to be filed before May 31
The institution or NGO receiving the donation has to file the details of the donation in Form 10BD. It is required to be filed electronically on the e-filing portal of the Income Tax Department. The institution or NGO is required to file the details of donation before 31st May of every financial year.
understand with the help of example
We can understand this easily with the help of an example. Suppose you donate Rs 1 lakh to a recognized organization on 1st August 2022. This donation is done in the financial year 2022-23. The company receiving the donation will have to submit its details on the Income Tax Department’s website by May 31, 2023.
When you file income tax return for the financial year 2022-23, you will have to give complete details of the donation certificate. The Income Tax Department will match the information given by you with the details of donation filed by the organization. Your tax benefit claim will be approved only after matching.
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