Under the income tax provisions and section 80G, NRIs are eligible to claim a deduction on the donations. Provided, the donation is made to the specified and eligible charitable organizations in India or the notified institutions and the relief funds set up by the Indian govt. However, one must remember that any donation made to foreign trusts or and political parties do not qualify for deduction under this section. Any donation to political parties made by an individual can be claimed as a deduction under the section 80GGC of the IT Act. An NRI can avail a maximum deduction of Rs. 2,000 if the donation is made to a relief fund or charitable organizations in cash. However, there is no maximum limit on the deduction amount if the payment is made via cheque or digital payment methods. An NRI must provide the standard receipt that has to contain the name, address, Pan Number of the trust, the registration number of the trust, name of the donor and amount donated, written in words and figures issued by the trust/donee entity as proof of the donation made. These details will be required at the time of filing ITR to claim a deduction.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We Strongly recommend you to seek professional guidance pertaining to your query or doubt.
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India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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