Friday 14 January 2022
How can Section 80G benefit you?
Charitable organisations give a platform for you to engage in humanitarian services as well as appreciates your noble work by making you eligible for tax exemption too.
Non-profit
and charitable organisations work at the ground level to serve underprivileged communities
in a sustainable way. This makes the service of NPOs, NGOs, and charitable
organisations impactful and tangible, paving way for lasting change. The work
of charitable organisations includes socio-environmental issues such as empowerment,
equality, healthcare, education, poverty, hunger, climate change, water
conservation, animal welfare, etc. These organisations greatly depend on the
support of donors and sponsors for monetary aid to carry out their operations
and expand their reach. To encourage individuals and for-profit organisations
to support the efforts of NGOs, the government has made the provision of tax
exemption donation.
No matter
which country you are a citizen of, you have to pay tax to the government if
you are salaried or self-employed individual or run a business. The tax
collected by the government is utilised for healthcare, public utility
services, management of defence forces, and various welfare projects for the
citizens. As per the tax policies in India, you can receive exemption from
paying taxes based on certain investment criterions such as housing loan, life insurance, medical insurance, etc. In addition, upon donating
to charitable organisations, you can also become eligible to receive tax
exemption as per the Section 80G of the Income Tax Act of India. While this provision clearly reinstates
the importance of ‘giving back to the society’ and supports philanthropic
contributions, it is important that as a donor you must ensure that the NGO you
are donating to is a registered organisation and is eligible to provide you tax
exemption. You must also note that depending on the cause and work of the charitable organisations, you may
either receive 100% exemption or 50% exemption on your donated amount.
When you donate, it helps the beneficiary NGO in its operations and makes a positive impact in the lives of the beneficiaries of the NGO or on the mission of the NGO.
But did you know that Section 80G has multiple benefits for you too!
· First,
it makes you eligible to receive tax exemption.
· Second,
it upholds the values of compassion and generosity,
· Third,
it facilitates the action of ‘giving back to the society’.
· Fourth,
it makes you a part of the solution.
· Fifth,
as you participate in the upliftment and welfare initiatives, it makes you the
‘agent of change’.
As is
said, ‘every drop makes the ocean’, similarly, every bit of your support adds
to the larger good of the society along with qualifying your contribution for tax
exemption donation. Among many NGOs, The Akshaya Patra Foundation is one
charity that is known for its 21 years of relentless service, financial
transparency, and credibility. This is one of the most reputed mid-day meal NGOs
in India nourishing 18,00,907 children studying in 19,039 government and
government-aided schools across 58 locations in 13 States and 1 Union
Territory.
Your
contribution to this non-profit organisation makes the much-needed mid-day
meals available to children on each school day. This greatly contributes to
their nutrition requirement, health, and education. The meals promote better
concentration, improves attendance and reduces drop-out rate. Regular schooling
enables children to step towards their aspirations with added enthusiasm,
determination, and confidence. As Akshaya Patra is a registered charity, your
contribution of ₹500 and above qualifies for tax exemption donation too.
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