Did you know that donating is a great way to save on taxes? According to Section 80G of the Indian Income Tax Act, one can avail tax exemption on donations made to charitable organizations or noble causes. To qualify under section 80G, donors must donate exceeding INR 2,000 in modes other than cash. The 80G also specifies tax deductions of up to either 50% or 100% with or without restriction to various donations made.
Although people have been donating to charitable organizations for a long time now, crowdfunding platforms like Donatekart have made this process easier. With a few clicks, one can not only support the cause of their choice but also get their 80G certificate.
Here’s how you can claim your 80G receipt on Donatekart in a few simple steps:
- Log in to your account using the same email ID you used for the donation
- Go to ‘My Donations’
- Choose the financial year for which you’d like the donation certificate
- Click on ‘Download 80G Certificate’
- Fill out the Form (if required)
- Submit the form
You will then receive your 80G receipt in your email within 24 hours.
Instead of receiving separate 80G certificates for each donation, you’ll receive a consolidated 80G certificate via email covering all your donations made through our platform in the financial year. You can also get a consolidated 80G receipt under ‘My Donations’ by selecting the year you require the receipt for and clicking on ‘Download’. You can then claim tax benefits while filing ITR in India with that certificate.
Further, The corresponding 10BE form that proves your eligibility for the tax deduction will also be consolidated. This way, you won’t have to worry about multiple downloads and can save time.
What is Form 10BE?
Starting from the financial year 2021-22, if you’re making donations to organizations and want to claim a tax deduction, you need to get a Form 10BE from that organization by May 31st each year. This is a new rule introduced to make sure people are truthful about their donations when claiming tax benefits.
Before this rule, the government couldn’t easily verify if the donation details provided by donors were accurate. So, to bring more transparency, the tax authorities made a rule in March 2021. It requires the organizations receiving donations to file Form 10BD, which lists the details of the donations they receive from donors.
So after you donate to an organization and they file Form 10BD, they should provide you with Form 10BE. This form is your proof that you can use when claiming your tax deduction under Section 80G.
How Can You Avail 10BE On Donatekart?
This can be done by filing your 80G claims for donations made during the Financial Year (FY). You can download your 10BE from the ‘My Profile’ section by 31st May of the next FY and also receive it via email.
For example: if you made donations between April 2023 and March 2024 (FY 2023-24), you will get your 10BE by 31st May 2024, provided you need to claim the 80G for these donations.
Donating and saving on tax has never been easier, and crowdfunding platforms have been a great contributing factor to the same. If you’re looking to support organizations across India that are working tirelessly to uplift and empower hundreds, click here.
