Income Tax Department notifies update for taxpayers on Donation

The Income Tax Department has notifies an Update on Donation made by taxpayer to claim deduction under Income tax.

The Update stated as, “It may be noted that statement of donation in Form 10BD and certificate of donation in Form 10BE is only applicable to the fund or institutions approved under sub clause (iv) of clause (a) of sub section (2) of Section 80G i.e Category D – Donation entitled for 50% deduction without qualifying limit. In respect of donations which fall in any other category (excluding category D), the deduction under Section 80G of the Act shall be allowed to an assesse based on the claim made by him in his return of income E.g. Donations made to PMNRF and PM CARES Fund etc.”

Donations made are eligible to be claimed as a deduction under Section 80G in all cases except in cases where the donation has been made in kind (eg: food, clothes, medicine etc). Donors must additionally provide evidence of payment in order to claim this deduction. The recipient trust issues a stamped receipt in this respect, the specifics of which must be included by the taxpayer when completing his income tax return.