Mr Amit is a non-resident Indian living in Australia. He wants to send Rs 20,000 to an NGO in India from his Australian bank account. Will he get a tax deduction for this amount or can deduction be claimed only if the money is sent from his Indian account?
Under the income tax provisions, NRIs are eligible to claim a deduction on the donation under section 80G. Provided, the deduction is allowed for the donations made to specified and eligible charitable organisations. Any donation made to foriegn trusts will not be allowed to be claimed as a tax deduction. An individual can claim a maximum of Rs 2,000 for donations made in cash. Any amount exceeding such amount must be contributed through electronic means or through cheque.
Also Read: Tax Query: Can co-owners of the same house claim tax benefits?
To conclude, Mr Amit can contribute the amount from this Australian account and claim a deduction of Rs 20,000 under section 80G.
For any clarifications/feedback on the topic, please contact the writer at komal.chawla@cleartax.in
I am an aspiring Chartered Accountant. I spend most of my free time dredging through the various Indian finance subreddits. I am a semi-professional bowler with a high strike rate every time there is a new tax reform!
