What is 80GGA of Income Tax Act?

What is 80GGA of Income Tax Act?

Section 80GGA allows deductions for donations made towards scientific research or rural development. This deduction is allowed to all assessees except those who have an income (or loss) from a business and/or a profession.

What is the difference between 80G and 80GGA?

Under section 80G comes another sub-section, 80GGA which exempts the money donated towards any of the following causes: Any sum paid to a college, university or organisation that is registered with the Income Tax Department and is involved in scientific research.

How do I claim 80GGA deduction?

To claim deduction under Section 80GGA, the taxpayer needs to furnish the following along with their Income Tax Returns: name of the donee, PAN of the donee, address of the donee and the amount contributed. Sections 35AC and 80GGA have certain common features when it comes to income tax deductions.

Which donation is eligible for 100% deduction?

Donations Permitted under Section 80G

Sr. No. Name Of The Charity % that qualifies for a Tax Deduction
1 Welfare Fund of Armed Forces (Army/ Naval/ Air Force) 100%
2 Chief Minister’s Relief Fund (LG’s) of any State (Union Territory) 100%
3 National Illness Assistance Fund 100%

Who controls the income tax department?

Central Board for Direct Taxes
The Income Tax Department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance.

What is 80EEA exemption?

Amount of deduction A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act. Read more about the deduction of Rs 2 lakh on interest on home loan here.

How much is 80G exemption?

Section 80G of the Income Tax Act provides a 50% exemption from paying tax on donations made to funds or organizations qualifying under the act. This Section offers tax deductions on donations made to certain funds or charitable organisations with a qualifying limit not exceeding 10% of Adjusted Gross Total Income.

How do I know if I have 80G exemption?

Steps for online verification are as under:

  1. Go to Income Tax website. Visit website Click Here >>
  2. Select Tax Exemption Institutions. There are twelve services under the tab “Tax Information and Services” namely;
  3. Select Search Options.

What donations are tax exempt?

What donations are tax exempt? Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government.

Who is eligible for 80GG deduction?

Who can claim deduction under Section 80GG? An employee or self -employed person who is not getting House rent allowance and has not received HRA at any time during the financial year. The deduction under Section 80GG is given to the least of the following: Total rent paid minus 10% of basic salary.

What is the maximum donation deduction for 2020?

Individuals can elect to deduct donations up to 100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25% of taxable income, up from the previous limit of 10%.