Uncovering tax benefits for organ donors in India
What's the story
Organ donation is an act of love and humanity. It saves lives, and there is no nobler deed than that.
In the U.S., the government appreciates your altruism and provides various tax benefits under the Income Tax Act.
Knowing these incentives might nudge you to tick that organ donor box.
This article aims to demystify the key tax benefits available to organ donors in India, to encourage this life-saving gesture.
Medical insurance
Deductions under Section 80D
Donors are eligible to claim deductions for the medical insurance premiums they pay for themselves and their dependents, and this includes expenses incurred for organ donation.
The maximum deduction limit is ₹25,000 for individuals below 60 years and ₹50,000 for senior citizens.
This policy serves to ease some of the financial strains associated with organ donation.
Health checkup
Exemption on medical expenditure
Medical expenses incurred directly for the organ donation process, including medical tests and hospitalization costs of the donor, qualify for tax deduction under Section 80DDB.
This deduction is available up to a maximum of ₹40,000 or the actual amount spent, whichever is lower.
For senior citizens, the maximum limit for this deduction is ₹1 lakh.
Charity support
Deductions for donations to charitable institutions
If a person makes a donation to a charitable organization engaged in the advocacy of organ donation or facilitating organ transplant surgeries, they are eligible to claim deductions under Section 80G of the Income Tax Act.
The rate of deduction ranges from 50% to 100% of the donation amount, depending on whether the charity holds approval from the Income Tax Department.
Serious ailments
Special provisions for critical illnesses
In cases where organ transplantation is required due to serious illnesses like kidney failure or liver disease, individuals are eligible for deductions under Section 80DDB of the Income Tax Act.
This provision provides a deduction limit of up to ₹100,000, irrespective of the age of the patient.
It aims to alleviate the significant financial burden associated with these challenging situations, ensuring critical healthcare is more affordable.
Smart planning
Tips on maximizing benefits
To take advantage of tax deductions, keep all your medical and donation receipts in order. Consult with a tax professional for individual advice.
Donations should be strategically planned within the fiscal year to qualify for the highest deductions.
This way, you can help the less fortunate and be smart about your taxes.