Difference between Section 80G and 80GGA

Section 80G offers tax exemption on amounts that are donated towards charitable organizations registered with government of India. Tax rebate under section 80G is rolled out to taxpayers only when donations towards these registered charitable organizations are made.

Following are some of the most significant donations that are exempted from tax under section 80G:

1. Donations to private trusts.
2. Donations towards trusts and funds set up by the government of India.
3. Any fund set up by the government for relief in case of various natural calamities.
4. Donations to approved organizations that indulge in research functions.

What Financial Transactions are Exempt from Tax, under Section 80GGA of the Income Tax Act?

Under section 80G comes another sub-section, 80GGA which exempts the money donated towards any of the following causes:

1. Any sum paid to a college, university or organization that is registered with the Income Tax Department and is involved in scientific research
2. Any sum paid towards a registered organization that works for rural development
3. Any sum paid to any organization which is registered with the National Committee, for carrying out eligible projects and schemes of the government
4. Any sum paid by the taxpayer towards rural development fund set up by the central government
5. Any amount paid by the assessee towards National Urban Poverty Eradication Fund set up by the government

Proofs Required to Claim Tax Exemption under Section 80G and 80GGA:

Following are the documents that serve as proof towards donations made under section 80G and section 80GGA of the Income Tax Act.

1. Stamped receipts listing down the amount of donation and the registered name of the trust as well as that of the income tax assessee. On the receipt, the most important figure is the registration number furnished by the Income Tax Department. It is mandatory for processing of tax exemption.
2. PAN of the trust
3. Validity of the trust registration number
4. Copy of 80G certificate

Into how many types are donations categorized under Section 80G?

They are broadly categorized into four types. They are:

1. 100% deduction without any limit
2. 100% deduction subject to a limit
3. 50% deduction without any limit
4. 50% deduction subject to a limit