Donations made to move to lower tax slab can make taxman see red

Donate only to legitimate organisations using banking channels, maintain documentation to back up claim

Bindisha Sarang Mumbai
cash, currency, notes, funds, investment, shares, growth, profit, loss, tax, money, income, earnings

The income-tax (I-T) department has issued around 8,000 notices to salaried employees, self-employed individuals, and companies who made significant donations to charitable trusts. The department suspects potential tax evasion, as records of these donations do not correspond with the income and expenses of those making them.
Sandeep Bajaj, managing partner, PSL Advocates & Solicitors, says, “Notices were issued for donations made during the assessment years of 2017-18 through 2020-21.”
Section 80G of the I-T Act allows deductions from income for donations made to certain funds and charitable institutions.

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First Published: Apr 24 2023 | 9:10 PM IST

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