Give a chance to empowering children. Save tax

 Receiving money in your account each month is incredibly comforting, but preparing income tax forms yearly is a tremendous hassle! Although it is fairly significant and required to file your returns on a regular basis if you have annual income greater than 5 lakhs, income tax returns may not be as exciting.

But if your annual income exceeds 5 lakhs, it is mandatory that you file your returns on time! Under Section 80G of the Income-tax Act of 1961, donations made to recognised charity organisations are eligible for tax exemptions.

When you file your income tax return, you can deduct the charitable contributions or donations you made during the specified fiscal year under Section 80G of the Income Tax Act of 1961. You will have lower tax obligations as a result of falling into a lower tax bracket. When you file an ITR for a particular number of charities, one of the special aspects of Section 80G is that there is no upper limit on the amount of your tax-deductible donation.

Terms and Conditions

You must adhere to a few requirements in order to claim tax deductions under Section 80G of the Income Tax Act. These are the first three of them:

• ·         For contributions made in cash that are worth more than Rs 2000, you cannot receive a tax deduction.
• ·         The contributions are not eligible for tax deductions under this provision if they are made in kind.
• ·         Contributions given to trusts that are registered outside of India are not allowed to be deducted from taxes under this section.

Method of Payment to gain Section 80G benefits

Only contributions made in cash, by cheque, or by draft are eligible for the deductions allowed under Section 80G of the Internal Revenue Code. You cannot claim a deduction under this section if the donation is paid in-kind. The deduction calculation under Section 80G does not take cash donations over Rs 2000 into account. Therefore, you must donate more than Rs 2000 online to be eligible for this deduction.

Section 80G tax deductions

The following categories are allowed for deductions for donations under Section 80G of the IT Act: 

•          Donations with no upper limit: Depending on the charity organisation where the gift was made, 50% or 100% of the total donation is deductible, without any further restrictions.
  
  
•        Donations with an upper limit: Depending on the charity organisation receiving the money, 50% or 100% of the entire donation may be tax-deductible. You should be aware that the amount that can be removed; in this case it is 10% of your gross annual income.

Akshaya Patra and Section 80G

Since 2000, Akshaya Patra has been providing Government school children with mid-day meals. The NGO in India is an implementing partner of the Mid-Day Meal Programme (now known as PM Poshan Abhiyaan).

You can gain 50% tax exemption on your donation to Akshaya Patra as an individual or corporation when you file your income tax return. The Foundation is registered as a not-for-profit organisation under the Indian Trusts Act, 1882 (Reg. No. 154) and under Section 12A (a) of the Income Tax Act, 1961.

So, contribute towards feeding over 2 million children every day and help children pursue their dreams. Donate and save tax!