80g limit

Simplification of 80g limit where section 80g is concerned, the deduction limit assumes vital importance in determining how much tax advantage will be available. Under this provision, the taxpayer is allowed to reduce his donation of 50% or 100% to the eligible ngos and charitable institutions from the income. However, this is subject to a cap of 10% of the adjusted gross total income. To give an example, if the taxable income of a person is ₹15 lakhs, the amount of deduction available to him would be ₹1.5 lakhs.