Make Tax Deductible Donations to Charity

Upholding the quality of your generous self, you may look for opportunities to give back to the society. One of the major reasons which urges people to make donations, is ‘the feel-good factor.’ Additionally, contributing to NGOs can also make you eligible for receiving tax exemptions. However, there a few things you need to ensure before making any contribution:

– Is the NGO registered?

– Is it a trustworthy organisation?

– Is your money being utilised diligently?

– What are the transparency policies of the organisation?

– Whether the organisation is eligible to give tax exemptions to its donors?

Donate for children and save tax

In order to encourage more people to engage in charitable acts, The Government of India has made provisions to help tax-payable citizens save tax on every charitable donation, under section 80G of Income-tax Act, 1961. When you donate to charity, you can claim IT exemption of 100% or 50% of the donation amount. This depends upon the criteria set by the Income Tax Act. Common examples of organisations you can make tax exemption donation towards are: public charitable trusts, non-governmental organisations, relief funds and the like.

What are the limitations under section 80G?

Once you make a donation to support NGOs with a cheque, draft or cash, you are eligible to claim deductions u/s 80G. However, donation made in kind like groceries, vegetables, clothes, medicines, etc., cannot be claimed as tax deductible donation under section 80G. Also, 2018 onwards, donations made in cash, more than ₹2000, are not allowed as deductions.

Donate towards The Akshaya Patra Foundation & save tax

The Akshaya Patra Foundation is registered as a non-profit organisation and is recognised as the world’s largest NGO-run school meal programme. The Foundation feeds 1.8 million children in 52 locations spread across 12 States and 2 Union Territories of India. Akshaya Patra serves locally palatable meals in 19,039 schools. For example, Sambar and Rice is served in Karnataka, Pappu and Rice is served in Andhra Pradesh, Boondhi Kadhi is served in Chhattisgarh and Dal Dhokali is served in Gujarat.

The Akshaya Patra Foundation feeds 18,00,907 children studying in Government schools and Government-aided schools in India. It aims to feed 5 million children by 2025 with the vision, ‘No child in India shall be deprived of education because of hunger.’ For the last 20 years it has been feeding wholesome meals to children belonging to challenging socio-economic backgrounds. These meals are a great intervention into bringing children back to school every day. These school meals help in holistic development of children. Usage of nutritious vegetables and pulses help children in their physical development and also in focussing better during their school hours.

You can donate towards providing unlimited food for education to children by donating ₹1100 towards The Akshaya Patra Foundation to feed 1 child with a year full of healthy and nutritious meals on every school day.

Donate towards making tomorrow, healthy future for children.

Healthy children make a healthy nation!

Show your support to the future of the Nation!

Income Tax deduction through Non-Government Organizations in India

You could be either a salaried employee or an entrepreneur, you are a taxpayer in the country by default. However, to reduce your income tax liability, there are various allowances available for exemption of tax. You can claim tax deductions by investing in House Rent Allowance, Leave Travel Allowance, Food coupons, Home Loan, Non-Government Organizations (NGO), etc.

There are approximately 3-3.6 million NGOs in India.

An NGO is a Non-Governmental Organization that aims at doing something good to others without any expectation.

Have you contributed towards an NGO? If your answer is no, you have one major reason to save on your taxes – Donation.

There are various NGOs that help you donate by charity.

Doing charity is a selfless act. To encourage donating for good causes, the Income Tax department allows people to claim exemption under Section 80G on the amount that is donated to NGOs and charities.

Donate to NGOs and avail tax benefits

The Akshaya Patra Foundation is an NGO in India that works consistently towards providing healthy, nutritious meals to school-going children. It reaches out to 18,02,517 children in 51 locations across 12 States & 2 Union Territories of India and provides freshly cooked meal on all school days. They implement the Mid-Day Meal Programme in 16,856 schools across the country. It strives to reach out to all the children and provide them with the much-needed school meals.

You can be an active part and contribute actively towards NGOs for the betterment of the society. The Government of India introduced Section 80G as tax exemption in India. Under this Act, the amount that is donated towards an NGO can be claimed as a deduction while you file your IT returns. However, the charitable trust should be registered to offer you exemptions from taxes. The donor can claim IT exemption of 100% or 50% of the donation amount depending upon the criteria set by the Income Tax Act.

For any NGO to be fully operational and functional, financial contributions are essential. Every denomination of your money is utilized towards achieving the agenda of the NGO If you donate to Akshaya Patra, your money will be used to providing wholesome, mid-day meals to school children going to Government and Government-aided schools.

Making donations for such initiatives will make lives of other people better. Apart from that, the joy that you experience on thinking ‘That child wasn’t going to school because he couldn’t concentrate in class due to hunger. But because I donated for the child’s meal, he doesn’t miss a day of going to school.’ This is when you are a proud human being.

If you want to identify yourself as life-changer, contribute regularly to any charity that you can connect with. Click here to make your donation today! Your efforts today will build a better, healthy and energetic generation tomorrow.

Donating to a non-governmental organization is one of the noblest ways to save tax

We are all aware of income tax and we are also aware that it is our fundamental duty to pay taxes on time every year. Taxes are applicable for all salaried and self-employed individuals earning above a certain income level. Additionally, businesses also need to declare their income and profit based on which the tax slab is decided for them. The taxes we pay are utilised by the government for developmental and security purposes such as constructing hospitals, schools, welfare centres, roads, maintenance of defence forces and the like. However, the Government has also made the provision of tax deductions for the welfare of the taxpayers.

donating to charity save tax

Applicability of tax deduction

The Government of India has made a provision under the Income Tax Act that relaxes the taxable amount of those who have made investment for the welfare of the self or the society. For instance, with regards to welfare of the self, if you are paying for house rent or children education; or you have invested on housing loan or medical insurance, you can avail tax deductions on your taxable income. Similarly, with regards to welfare of the society, is you contribute donations to registered non-governmental organizations in India, you can avail tax benefits under Section 80G of the Income Tax Act.

Charity – the noblest way to save tax

Investing on personal progress is a must, but at the same time, we must also look beyond ourselves. As citizens, it is our responsibility to contribute towards the upliftment and development of the country. Hence, as a means to encourage people to get involved with charitable organisations, the Government has made the provision of tax exemption donation.

Funds and fundraising are an important aspect of an NGOs operations and your contribution supports non-governmental organisations in India to make progresses in their respective fields of work. This in turn brings about a desirable and sustainable change in the society.

For instance, if you relate to women empowerment, you can choose any of the NGOs working in this field. Similarly, if you strongly identify with health and education of children, you can support child-centric NGOs such as The Akshaya Patra Foundation that provides free school meals to more than 1.8 million children on each school day across 12 States and 2 Union Territories of India.

When you donate to registered non-governmental organisations in India, you may either get 100% or 50% exemption on the donated amount based on a pre-decided slab and criterions set by the Income Tax Act depending on the type of NGO and its cause. Your support to any charitable causes makes you a part of the solution for several critical issues obstructing the progress of the society. Your choice of NGO could be any but your support potentially transforms the entire ecosystem of the society for the better along with making you eligible for tax exemption donation.

In conclusion, as you invest for yourself, take a moment to act for the society too of which you are an integral part!

Disclaimer: Each of the above-mentioned tax exemption plans/investments has its own terms and conditions. Hence, it is advised to understand the respective tax exemption clauses prior to making an investment or a claim.

50% Tax Exemption under Section 80G of Income Tax Act

Non-Governmental Organisations (NGOs) play a crucial role in addressing various socio-environmental issues such as illiteracy, hunger, malnutrition, poverty, unemployment, climate change, pollution, and the like. The operational success of NGOs can be attributed to their focussed and strategized functioning towards a particular issue or a set of related issues. For instance, The Akshaya Patra Foundation, an NGO in India aims at countering the twin problem of hunger and illiteracy by providing mid-day meals to children at government schools. No matter what causes a particular NGO is focussing on, all NGOs create a platform and welcome the participation of all of us. And, one of the many ways to get involved with a cause is to offer charity.

tax exemption benefit

Aside from the satisfaction of doing a philanthropic act, offering charity can also benefit you financially. Yes, by donating towards an NGO you can avail tax exemption under 80G deduction. As a move to encourage people and business establishments to support various causes, the Government of India introduced Section 80G to give tax exemptions on donations made towards charitable organisations. However, you will be eligible to avail this tax benefit only if you are donating towards certified NGOs and charitable institutions. By certification, it means the NGO or Trust must have a 12A Certificate along with tax exemption status under Section 80G, Section 80 GGA, and Section 35AC (i & ii, i & iii) of the Income Tax Act of 1961.

The limit of deduction is either 50% or 100% of the donated sum depending on the charitable organisation you have chosen. This is in view of the segregation made by the Income Tax Department wherein certain Trusts and NGOs can offer 100% deductions to their donors and some can offer 50% deductions on the donated amount. Well, one such registered NGO in India that provides tax benefits for your donations is The Akshaya Patra Foundation. Akshaya Patra is a mid-meal NGO serving school lunch to children in government and government-aided school across 12 states of India.

  • The Foundation is registered as a not-for-profit organisation under the Indian Trusts Act, 1882 (Reg. No. 154).
  • It is registered under Section 12A (a) of the Income Tax Act, 1961.
  • The Foundation is also registered under Section 6 (1) (a) of the Foreign Contribution (Regulation) Act, 2010 (FCRA Reg. No. 094421037).

As per the revised tax exemption act, effective 1 April 2017, donations above Rs. 500 to Akshaya Patra will be eligible for 50% tax exemption under Section 80G of Income Tax Act. But, you must note that a cash donation of above Rs. 2,000 is not applicable for 80G certificates. The benefits of 80G deduction are applicable only for Indian and NRI donors (Indian citizens, holding an Indian passport). To know about tax exemption for foreign donors, click here.

By contributing to Akshaya Patra, you will help in providing school lunch to millions of children who come socio-economic background. The school lunch helps such children to continue schooling by countering classroom hunger. The education and nourishment they receive through the Mid-Day Meal Programme empower them to grow up to be skilled and resourceful citizens of the nation. This means by donating towards the mid-day meal cause, you are supporting zealous, young lives thereby contributing to nation-building. And, simultaneously, you are also benefitting from income tax exemption, making it a win-win situation for the cause and you!

Well then, go ahead and begin the ripple effect of charity by choosing to donate online to charity or offer an offline donation. Your charitable contribution will potentially create a healthy, educated, and responsible generation.