Showing posts with label tax deductible donation. Show all posts
Showing posts with label tax deductible donation. Show all posts

Wednesday, 14 September 2022

Effects of hunger on children. Beat it by donating to charities

 

When you think of hunger, your mind immediately paints a black and white picture of a child probably in tattered clothes scurrying for food here and there.

Sadly, this is true and very uncomfortable.

India is home to 33 lakh undernourished children, out of which 17.7 lakh of them are severely malnourished.

For most of us, hunger is only about skipping a meal. But, in reality, hunger is much more than a missed meal and grumbling stomach.

Hunger is a vicious cycle that only makes room for hungrier children and it is unending. 


What happens when a child is hungry for a long term?

If a child is hungry, depending on the stage of hunger, h/she is categorised as suffering from:

  • ·         Acute hunger
  • ·         Chronic hunger
  • ·         Hidden hunger

Acute hunger is when a child is undernourished for a definable time, for example, during wars and disasters. Chronic hunger is a form of hunger that is associated with poverty where they lack sufficient funds for healthy food. Hidden hunger is a form of hunger that results from an unbalanced diet where initially, the symptoms are not identifiable but in the long-term lead to nutritional deficiencies and illnesses.

Apart from these physical deficiencies and illnesses, children who stay hungry for a long time suffer from mental incapability like forgetfulness, decreased attention span and inability to remember long term memories, resulting in decreased academic scores. 

Make charity donations to defeat hunger in children

NGOs target the grass root levels to eradicate all forms of hunger - acute, chronic and hidden. Some of them even go back to nourishing the mother who carries children – pregnant, nursing and new mothers.

Donating to these NGOs to nourish mothers and their children also makes you eligible to gain tax deductions. 

Your tax deductible donations are either eligible for 50% or 100% tax exemption depending on the registration of the non-profit organisation.

Every charity wants to be the best NGO to donate to because the cause they fight for is so genuine. Also, the impact that donors’ contribution has on the beneficiaries is truly appreciable. Here is a story of a young school child who has beaten the ill effects of malnourishment.

Sachin, a Class 6 student at Hanspal Primary School, dreams of becoming a pilot. He suffered from malnutrition and stunting during his initial days of school. He was never able to focus in class and was weak and lifeless. But after getting regular meals at school, he blossomed into an attentive student who performed well and is a favourite of all the teachers.

Beating all the forms of hunger, he says his school lunch has changed him inside out. Adding to it, he says he prefers school meals to the food he gets to eat at home.

Sachin is a mid-day meal beneficiary of The Akshaya Patra Foundation, an NGO in India that serves nutritious meals every day. It has the distinction of being the world's largest NGO-run school lunch programme, serving freshly cooked nutritious meals to over 1.8 million children in 19,039 schools in 14 states and 2 union territories.

Make charity donations to this organisation to end classroom hunger in children studying in Government and Government-aided schools. Your tax deductible donations support food and education of children whose parents cannot afford one square meal a day. Help many more children like Sachin, to break the unending cycle of hunger by feeding them with Akshaya Patra.

Thursday, 10 March 2022

5 tax-saving tips

The Akshaya Patra Foundation is registered as a not-for-profit organisation under the Indian Trusts Act, 1882 and Section 12A (a) of the Income Tax Act, 1961. It has been serving mid-day meals to underprivileged school children since 2000. Every donation made towards the NGO in India is eligible for 50% tax exemption.
 

Monday, 24 January 2022

Deductions qualifying for tax exemption

 


Salaried employees are major contributors to the bucket of taxpayers in a country. Income tax is paid as a part or percentage of the annual income that an individual earns. It is every citizen’s duty to pay his income tax for all the rights he earns in the country while he earns as a salaried employee or as an entrepreneur.

According to the Government of India’s e-Filing portal of the Income Tax  Department, there were 8.83-crore taxpayers till 7th September 2021.

 

The money collected by the tax department is used to provide various facilities for the benefit of the citizens. How do you think the Government of India is able to provide facilities free of cost? For example, public utility services like metro construction, road construction, free health care facilities for the underprivileged, all come from the money that is paid when you pay taxes.

 

The Government has made various provisions to help its citizens gain tax exemption in India.

 

Paying tax is inevitable, however making smart investments that will help you save as well, is a smart choice people can opt for.

 

Tax exemption in India

Depending on the nature of the income, there are various categories for tax exemption in India. The most common of these are: House Rental Allowance (HRA), Education loan, car loan, Leave Travel Allowance (LTA), contribution towards Employee’s Provident Fund (EPF) Scheme, etc.

 

House Rent Allowance

If you are a salaried employee who lives in a rented house, you stand a chance to get the benefit of HRA. This amount could either be totally or partially exempted from income tax. However, if you are not living in a rented property but claim HRA, this entire amount will be taxable.

 

Leave Travel Allowance

If you are a salaried employee and your employer has the provision of LTA, you can claim for the exemption of your travel within India under Section 10(5) of the Income Tax Act, 1961. However, tax exemption does not include food expenses, shopping and stay, but, only for travel of the individual, their family including children.

 

Deductions under section 80C, 80CC and 80CCD (1)

This is by far, the most extensively used option to save tax. To encourage individuals to save and invest in retirements plans, the Indian Government has made provisions for individuals under these sections. These include Life Insurance premium, Equity Linked Savings Scheme (ELSS), Employee Provident Fund (EPF), Contribution to PPF Account, National Pension Scheme, National Saving Certificate (NSC), etc.

 

NGO donations under section 80G

An individual can get involved in philanthropic donations for tax write off. Charitable organisations give a platform for an individual to engage in humanitarian services as well as to appreciate the noble work by making you eligible for tax exemption too. The deductions under Section 80G of the Income Tax Act of 1961 towards charitable organisations are either eligible for 50% or 100% tax exemption depending on the NGO being supported.

 

When you contribute by making donations for tax write off, you are not only saving on your taxable income, but you also add goodness in your life for helping people in need. Thousands of not-for-profit organisations receive donations for tax write off, but the help that they provide to the organisation to work towards its cause is often gone unnoticed.

 

Benefits of making NGO donations

·         Gives inner satisfaction of helping people

·         Giving back to society makes an impact

·         Connects with like-minded people

·         Saves tax on your contribution

·         Draws attention to the cause

·         Helps people in need with what they require

 

Every little support to people in need gives them relief from their suffering. The Akshaya Patra Foundation is an NGO in India that provides free and unlimited food for education of children coming from challenging socio-economic backgrounds. It has the distinction of being the world's largest NGO run school lunch programme spread across 60 locations in 14 states and 2 union territories of India.

Akshaya Patra provides nutritious and locally palatable meals to 1.8 million children coming from low-income sections of society.

AkshayaPatra is an NGO known for 21 years of relentless service, financial transparency, and credibility. All your donations above INR 500 made towards this NGO, are eligible for 50% tax exemption under section 80G of the Income Tax Act. You will also get a tax exemption certificate within seven working days with your name and contribution amount. So the next time you plan on making tax saving investment, think of the benefits of donating to NGOs.

Wednesday, 5 January 2022

How can you claim tax exemption for donations?

 

In order to receive tax exemption for your donations, it is very important to verify whether or not the charitable organisation you are donating to is a qualified tax-exempt organisation because not all charitable organisations are eligible to give you tax benefits. Here is the 5-point checklist to claim tax exemption for donations to charitable organisations

How can you claim tax exemption for donations?