I donated money to Kerala Flood relief fund this year. Am I eligible for any tax deductions?
Donations that were made to specific relief funds and registered charitable institutions are eligible for tax deductions under Section 80G of the Income Tax Act. Donations made by cheques, DDs, cash or bank transfers are eligible for deductions. However, cash donations more than Rs. 2000 are not eligible for tax deductions.
If you made donations in kind like ordering food supplies or any other products for the people of Kerala afflicted by the floods, then you cannot avoid any tax deductions.
While filing for returns make sure that you have a receipt of the donation with name, PAN number and address of the organisation that you are making the donation to.
Tax Deductions Available
There are two types of deductions available on donations made to Kerala flood relief – one with a limit and other without a limit. The limit on deductions mainly depends on the institutions or the organisations the donations are made. If you donated money to a government-owned and operated organisation, then your donations belong to the no-limit category. In such circumstances, you are eligible for a 100 percent deduction which means if you donated Rs. 10,000 you can subtract the whole amount from your income on which taxes are payable.
If you have made a donation to a registered NGO (Non-government Organization) for the Kerala flood victims, then you are entitled to a 50 percent tax deduction of your donation or 10 percent of your Gross Total Income, whichever is lower. However, to avail this deduction, you must ensure that the organisations are registered, and the government has not revoked the registration certificate that is issued to the NGO. If such a case happens, then you will not be eligible for any tax deduction.