Donate Today. Earn Goodwill. Save Tax
He says:
“Our society needs a doctor to treat people, an
engineer to build buildings similarly we also need police to maintain harmony
and peace in the locality. Different types of people live together in a society
and this can also raise conflict among them. When I become a policeman, I want
to maintain peace and stop any kind of crime in society.”
He also adds: “Police are the most trusted authorities of society. They help others without thinking about their life. They have to face different problems while helping us still, they never hesitate and this encourages me to be a police officer.”
One of the most satisfying experiences is
giving. Not only can it make the recipient of the gift happy, surprised and
awestruck, but it can also make the giver feel wonderful.
The same is true with charitable
contributions. A monetary donation can have a significant influence on an NGO
that depends on donations to carry out its goal, but there's another big
advantage to making charitable contributions: you can save tax. Donations made
to recognised charitable organisations are eligible for tax deductions under
Section 80G of the Income-tax Act of 1961.
Many people and corporations in India
give to charities both for goodwill and to avail tax exemptions.
In India, how Do donations operate?
According to the Indian tax law, donations
given in accordance with Sections 80G and 80GGA of the Income Tax Act, 1961,
are tax deductible. The amount of charitable contributions may be allocated to
humanitarian efforts and charitable organisations under Section 80G.
Depending on the organisation to which
the donation is made, the deduction for donations made under this provision may
be either 100% or 50%. The Income Tax Act of 1961 has a list of the
organisations with which you can avail tax exemption. One must keep in mind, nevertheless, that any donations made
to foreign trusts or political organisations are not eligible for a deduction
under this clause.
Donations that Benefit You
Are you considering making charitable
contributions in order to reduce your tax liability? It is preferable to have a
few reminders. The following are some advice that will assist you in saving on taxes.
Plan your donation
It is always advisable to properly
arrange your philanthropic contributions so that you can receive the most
advantage. You can minimise your "out of pocket" expenses in this
way. Will a charitable donation enable you to save more money? It is preferable
to wait until the following fiscal year.
Reimbursement for transportation costs
In the event when an individual volunteers
for a non-profit or charitable organisation, vehicle expenditures may be
claimed. To do this, accurate records of the car expenses related to the organisation's
activities must be kept.
Every donor is given a receipt
Get a receipt for any donations you make
as a taxpayer habit. The person's records would be reinforced in this way.
Additionally, there would be reliable proofs to support the gifts in the event
that the records were audited. Cancelled cheques or other documents may be
preserved for lesser donations. Maintaining records and receipts is essential
for larger donations because they would otherwise not be accepted.
This New Year, you can ensure that every
child has an access to at least one nutritious meal a day and an access to
education, by donating to Akshaya Patra. In addition, you can also donate
towards the health and well-being of homeless mothers. Donate and save tax
under Section 80G of Income-tax Act!
In a Nutshell
Not all NGOs or charitable organisations are immediately eligible to
offer their donors a deduction under Section 80G. Only organisations that have
been given the go-ahead from the Commissioner of Income Tax (Exemptions) to
accept donations and issue 80G certificates may do this.
The Akshaya Patra Foundation is a non-profit organisation that is
registered under Section 12A (a) of the Income Tax Act, 1961. Which means that
all online donations made above INR 500 are eligible for 50% tax exemption. All
donors will receive a tax exemption certificate as a proof of their giving too.
