The gifts to institutions that are eligible for a deduction with no restriction and donations to institutions that have a maximum deduction limit are listed below. The type of institution to which the money has been donated determines whether a deduction is allowed without a maximum limit or is limited to 10% of adjusted gross total income.
After deductions for donations, the remaining income is taxable according to the taxpayer’s tax bracket. However, in some situations, the deduction for charitable contributions under Section 80G is limited to 10% of the taxpayer’s Adjusted Gross Total Income. In some situations, the deduction that can be claimed for donations given under section 80G has no maximum limit. Maximum Limit for Deduction under Section 80G.
The Indian government has been encouraging people to donate to the poor and needy regularly to promote the concept of charity, and this donation can also be claimed as a deduction under Section 80G.
All About Section 80G | How to claim Income Tax Deduction of Donations Paid