What is section 80g of income tax act

Section 80g of the Income Tax Act, 1961 is a provision that allows taxpayers in India to assert deductions for donations made to certain charitable corporations. This phase is geared toward promoting philanthropy and helping ngos that interact in social welfare sports. Under this section, people and agencies can receive deductions of both a 100% or 50% of the donated amount, relying on the nature of the employer and the type of donation.To avail of this deduction, contributions have to be made to corporations registered beneath section 80g and they must be used for charitable functions like relief of the negative, education and scientific relief. Donors are required to gain a receipt from the recipient enterprise, consisting of its registration quantity below section 80g. This provision now not most effective incentivizes charitable giving but also fosters a subculture of social obligation among taxpayers in India.