If you are pressed for time with tax planning, we have for you some information on financial year-end donation to charity. It won’t just help you avail 100% tax deduction, but also ensure that you experience the joy of giving.
Charitable institutions play a crucial role in socioeconomic development of the country, and therefore, there exist Income Tax rules that have been specifically constituted to encourage people to donate to charities. Some charitable projects are approved as eligible for tax deductible donations under Section 35AC and Section 80GGA.
If you have your own business or you happen to be a salaried individual donating to an eligible institution, then you can claim 100% deduction under Section 35AC. If, on the other hand, your source of income is anything other than business, then deduction can be claimed under Section 80GGA. These provisions in the Income Tax Act are meant to help charitable institutions attract prospective donors and raise funds to run the programmme.
If you want to avail tax benefits, you need to check which projects are eligible for the same. It’s the Central Government that decides which programme of which charitable institution is to be approved for tax deductible donation under various sections of the IT Act. The Akshaya Patra Foundation’s Mid-day Meal Programme is one of the projects you can donate to in order to avail 100% income tax exemption under Section 35AC.
Any donation of Rs. 500 and above is eligible for tax benefit in this case. If say you donate Rs. 2000, then this amount will be deducted from your taxable amount. You will receive a certificate acknowledging your contribution. You can use the same to claim exemption from taxable income.
By donating to Akshaya Patra, you will be doing your bit to feed children, bring them to the classroom, and nurture smiles.