Budget 2020: Donation details to be pre-filled in tax returns

Khyati Dharamsi

If you had been running around, searching for donation receipts at the time of tax-filing, then a major relief can be sought with the Budget 2020 announcement.

Your income tax return form would now be pre-filled with the details of the donation you have made and the amount that can be claimed for deduction under Section 80 (G) of the Income Tax Act.

To reduce the multiplicity of efforts on notifying donations to charitable institutions and to ease the process for claiming deductions, the Central Board of Direct Taxes would get information on donations from the charitable institutions. This information received would be pre-filled in the income tax return forms.

To ensure this seamless movement of information and to enable donors to get the right tax exemptions, charitable institutions would have to be registered with the income tax department. A complete electronic registration process would provide a unique registration number to these charitable institutions. This provisional registration would be valid for a period of three years initially.