ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is Section 80G? You can claim a deduction under Section 80G of the Income Tax Act for contributions made to certain relief funds and charitable institutions. All donations, however, are not eligible for deductions under Section 80G. Only donations made to prescribed funds qualify as a deduction.

Detailed explanation-2: -What qualifies as an in-kind donation? In-kind donations are anything that’s donated to a nonprofit, other than cash. They can be donated by an individual, other nonprofit organizations, or companies. Goods can be brand new or used, or even loaned.

Detailed explanation-3: -Traditionally, cash was the most common donation. A cash donation means a donation of cash, check or credit card, but recently in-kind donations have become more frequent. An in-kind donation is any non-cash item given to an organization to be used by the organization.

Detailed explanation-4: -Section 80G deduction of the Income Tax Act is allowed for amount paid by the taxpayer as donation to any fund or institution or charitable Trust. All donations are not treated equally under Income Tax Act. Donations to certain funds and institutions qualify for 100% or 50% deduction without any qualifying limit.

Detailed explanation-5: -Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations, however, are not eligible for deductions under section 80G. Only donations made to prescribed funds qualify as a deduction.