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.

Support a Child and Avail 100% Income Tax Exemption

We’ve all been hungry before, but very few of us have had to go days between eating a complete meal. Millions of children across India experience debilitating hunger every day, and are forced to focus all their energy on simply earning enough money for a single meal. In a situation like this, children cannot even consider getting educated or enjoying their lives in any way.

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The Akshaya Patra Foundation, a top NGO in India, has been trying hard since the year 2000 to ensure that no child in India misses an opportunity to attend school due to hunger.  The freshly cooked nutritious meals served by the NGO have helped bring over a million children back to school. Today, over 1.4 million children in 10 states in India receive mid-day meals from Akshaya Patra. Apart from improving children’s nutritional status, the mid-day meals have helped improve school enrolment, classroom attendance, concentration levels and performance.

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The credit for the children’s improved nutrition and education goes primarily to people who make the charitable trust donation. In return, Akshaya Patra also gives some benefits to its well-wishers. A charitable trust donation of ₹500 or above, made to support Akshaya Patra’s Mid-Day Meal Programme gets you a 100% income tax exemption in India under Section 35 AC or 50% under section 80G of the Income Tax act.  Within 10 days of making the donation, the donor will receive an income tax exemption certificate from Akshaya Patra.

Tax-Benefits

As a next step, the organisation wants to feed 5 million children by 2020 and you can help it reach its goal. Support the programme generously with charitable trust donation and fulfil children’s dreams.