Income Tax: Donating money? Here's how much tax you can save under these sections

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Eligible donations: This section encompasses donations made to diverse charitable organizations and funds sanctioned by the Income Tax department. These may include: Deduction percentage: The deductible amount varies based on the type of institution and the donation's nature. It can range from 50% to 100% of the donated sum, subject to specific limits.

Claiming the deduction: To avail of the deduction, you must possess a valid donation receipt from the registered charitable institution. This receipt should indicate: Cash donations over ₹2,000 are not eligible for deduction under Section 80G. Donations should be made via cheque, draft, or online transfer.

You can avail of the deduction for donations made in the respective financial year when filing your Income Tax Return (ITR). This section provides an extra deduction of 100% for donations made to particular entities, like political parties and scientific research institutions. While Section 80G encompasses a broader range of eligible charities, Section 80GGA specifically targets donations made towards: Scientific research: This covers institutions involved in scientific research or universities/colleges with government-approved research programs.

Rural development: Donations to approved programs or institutions dedicated to rural development initiatives are eligible under this section. As this section permits a full deduction on the donated amount, the entire sum you contribute is subtracted from your taxable income, providing substantial tax savings. Additionally, there is no maximum limit on the donation amount you can claim under Section 80GGA, unlike certain deductions under Section 80G.