Apart from investments and expenses, even donations to specific institutions can be exempt from income tax, while filing returns. But before you donate, check whether the institution is an exempted institution. These can include: trusts, non-government organisations, non-profits and charitable institutions.
For your donation to qualify for deductions, these institutions have to be registered under various sections of Income-tax Act, 1961. For added security, verify the permanent account number (PAN) of these institutions as well.
