2. Section 80G: Deduction is also available on the donations made by an individual to certain funds or charitable institutions under Section 80G of the I-T Act. Under this section there is no restriction on the amount of charity and the rate of deduction, is either 50 or 100 per cent, that too depending on the choice of trust. But the, donations must be made to registered institutions only. This also includes any amount contributed to a recognized political party and that can be claimed as a deduction under Section 80GGC. This is a new deduction and was introduced in 2010.   Even donations done to an institution that involves scientific research or rural development also get exemption under Section 80GGA.  However, you cannot use this route to evade tax by bringing down your income tax slab. The amount of deduction allowed under this section is only up to 10 percent of the gross total income of the donor. Also, remember only cash donations are taken into account, donations of food, clothes and medicines do not qualify for such a deduction.