A voluntary help either in terms of money or kindness towards any charitable organization registered under section 12AA of the income tax act is considered as a donation and it is exempted from tax under section 80G of the Income Tax Act.

Today, there are various Non-Governmental Organizations (NGOs) and other non-profit bodies that are working for the welfare of a particular section of the society. Be it an orphanage, child education, an animal shelter, an old-age home or any other social cause, these organizations need our help to run their affairs smoothly and efficiently.

When you donate money to any of these NGOs, not only do you feel good about helping someone in need, but you also get a tax benefit. This is because the Indian government has exempted donations made to certain approved organizations from taxation under Section 80G of the Income Tax Act.

There are certain conditions that need to be satisfied for a donation to qualify for tax exemption:

1. The donation should be made to an organization registered under Section 12AA of the Income Tax Act.

2. The donation should be in cash, cheque or draft.

3. The donation should not be in the form of goods or services.

4. The donation should be for a social cause or charity registered with the Income Tax Department.

5. The donor should have a valid PAN card.

6. The donation should be more than Rs 200 but less than Rs 10,000 in a year.

7. If the donation is more than Rs 10,000, it will be subject to a flat rate of deduction of 30%.

The tax benefits available on donations under Section 80G are as follows:

1. If the donation is less than Rs 200, there is no deduction allowed.

2. If the donation is between Rs 200 and Rs 1,000, the donor gets a deduction of 50% of the donation amount.

3. If the donation is between Rs 1,000 and Rs 10,000, the donor gets a deduction of 100% of the donation amount.

4. If the donation is more than Rs 10,000, the donor gets a deduction of only 30% of the donation amount.

However, it is important to note that even if the donor does not have a PAN card, he/she can still claim the deduction under Section 80G. In such a case, the donor would need to attach a self-declaration form with the donation receipt to claim the deduction.

So, if you are planning to make a donation to any social cause this year, make sure you do so through an organization registered under Section 12AA of the Income Tax Act. This will ensure that you get a tax benefit on your donation and you can contribute towards making a difference in society.