All NGOs or charitable organisations are not 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 so.
Donate to Akshaya Patra. Get an exemption of 50% on all your donations and ensure that children have an access to food and education.
Section 80G - How to avail its benefits
The Indian Government encourages people to give and this donation can also be claimed as a deduction under Section 80G, in order to promote the idea of generosity towards the needy. A tax exemption can be claimed only if the donations are made to designated organisations and NGOs.
Who is eligible?
There may not always be a cap on the amount of deduction that can be made for contributions made in accordance with Section 80G. However, in other circumstances, the Section 80G deduction for donations is capped at 10% of the taxpayer's adjusted gross total income. Also, in some cases the full deduction is allowed of the amount donated whereas in some 50% of the amount donated can be claimed as a deduction.
Donations that benefit a taxpayer
The following are some tips to help you lower your tax burden:
• Plan your donation: Organise your charitable donations to NGOs effectively to get the greatest benefit.
• Reimbursement for transportation costs: Vehicle expenses may be claimed if a person donates their time to an NGO or charity organisation.
• Every donor is given a receipt: A receipt for every donation made to an NGO are reliable proofs that the records were audited. Cancelled cheques or other documents may be preserved for lesser donations.
How does donating to Akshaya Patra benefit a taxpayer?
Fifty percent of any donation made as an individual or corporation to Akshaya Patra can be deducted when income tax return is filed. This NGO is registered under the Indian Trusts Act of 1882 and Section 12A(a) of the Income Tax Act of 1961.
To conclude…
Ensure that every child has access to at least one nutritious meal and education every day, by donating to Akshaya Patra. Donate and save 50% tax, under Section 80G of the Income-tax Act!
