It should be registered under the Societies Registration Act 1860 or under Section 25/8 of the Companies Act 1956/2013 or under the Indian Trusts Act 1882 and it fulfills the conditions mentioned in sub-section (5) of Section 80G of the Income Tax Act. Procedure for an NGO to qualify for approval under Section 80G of the Income Tax Actįor an NGO to qualify for approval under Section 80G of the Income Tax Act, it needs to fulfill certain criteria. ** Please note that Pledge Foundation (Reg as Pratijnya Foundation) does not accept any cash donations. Section 80G allows a deduction for donations unless they are in the form of a sum of money. It is, therefore, imperative that checks or donations made online qualify as deductions, aligned with the government’s vision for a cashless economy and transparency. Deduction under Section 80G is available for cash donation* that does not exceed Rs. When donating through cash, check, draft, or online, taxpayers can claim Section 80G as a deduction. organization like Pledge Foundation (Reg as Pratijnya Foundation) subject to 10% of adjusted gross total income”, shall be deducted.Īdjusted gross total income means gross total income as reduced by any portion thereof on which income tax is not payable under any provision of the Income Tax Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of Chapter VIA of Income Tax Act. Under the Income Tax Act, in computing the total income of an assessee 50% of “Donation given to any institution or fund covered under sub-clause (iv) of clause (a) of sub-section (2) of Section 80G of Chapter VIA of Income Tax Act i.e. Also applicable to non-resident Indians, it provides a highly attractive tax-saving option along with doing a good deed. Every individual, Hindu Undivided Family, Company, and Partnership Firm is entitled to tax benefits under Section 80G. Tax Deduction under Section 80G of Income Tax Act for Donation towards Pledge Foundation - (Reg as Pratijnya Foundation)įor charitable contributions made, there is Section 80G, which allows tax savings.Īs an incentive for donations, the government has offered a deduction under Section 80G of the Income Tax Act.