Charitable Contributions

Tax Glossary Definition

Charitable Contributions

Charitable Contributions – Charitable contributions are voluntary payments or donations made by individuals, businesses, or other entities to registered charitable or nonprofit organizations that serve public or humanitarian purposes. Such donations may qualify for tax benefits when made to institutions recognized under specific provisions of tax law. Example: A contribution of ₹50,000 to a registered NGO eligible under Section 80G of the Income Tax Act allows the donor to claim a 50% deduction from taxable income.

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