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.

Advertisements

The impact of mid-day meal in Rajasthan

In 2002, Rajasthan became one of the first states to implement the SC directive of providing cooked mid-day meals in government and government-aided schools across all its 32 districts. Since then there have been noticeable changes in the school environment resulting in increased enrolment at the elementary level, particularly of the girl child, significant improvement in health and quality of education, decrease in school drop-out rate, while also addressing the hunger and malnutrition issue to quite an extent. A 2016 study titled, ‘School Feeding and Learning Achievement: Evidence from India’s Midday Meal Program’ stated, ‘Continued exposure to mid-day meals contributed to an increase in test scores. Reading scores improved by 18% for children exposed for five years to mid-day meals, in comparison to children who had been exposed to mid-day meals for less than a year. The arithmetic test scores witnessed an improvement of 9%.’ To further this impact, The Akshaya Patra Foundation made its advancement towards Rajasthan in February 2004 as a mid-day meal serving NGO in Jaipur.

mid-day meal impact in Rajasthan

Akshaya Patra began its service with the introduction of the Jaipur kitchen in February 2004, followed by Baran (2005), Nathdwara (2006), Jodhpur (2013), and Ajmer (2016). To facilitate its Mid-Day Meal Programme, Akshaya Patra follows the centralised format of kitchen in Jaipur, Nathdwara, Jodhpur, and Ajmer, and operates the decentralised format in Baran for being a remote area. The three kitchens at Jaipur, Nathdwara, and Ajmer are ISO 22000:2005 certified facilities affirming the NGO’s commitment towards cleanliness, hygiene and other vital aspects of kitchen operations. Acknowledging the importance of maintaining a local taste for children to enjoy their meal, Akshaya Patra’s menu for mid-day meal in Rajasthan include rice, roti (Indian flatbread), dal (lentils curry), pulao (a rice-based dish cooked in a seasoned broth) and vegetable dishes. The strategic expansion of the NGO has resulted in its current beneficiary base of 1,70,723 children in 2,672 schools.

Taking reference from two impact studies: Akshaya Patra: Feeding India’s Schoolchildren – Harvard Business School 2007, and Assessment of Mid-Day Meal Programme in eight states – Sigma Research and Consulting Pvt. Ltd. 2014, it is observed that Akshaya Patra’s school meal programme resulted in consistent attendance of children, decrease in drop-outs and long absences, improved concentration, and significant improvements in nutritional level, height, and weight. Along with impacting the lives of children in Rajasthan, Akshaya Patra is also feeding children across 11 more states and has a total beneficiary base of over 1.6 million children. While it is moving ahead on its path to feed 5 million children by 2020, it requires your generous support. By choosing to donate towards this NGO you will also avail the benefits under 80G tax exemption in India. Come and join in the efforts of Akshaya Patra so that ‘No child in India is deprived of education because of hunger.’

How to make this Diwali special by involving in a social cause

Make this festival of lights special. There are numerous ways to do it. But by involving social cause in your celebration, you would be spreading joy among others too.

diwali-post

How can you do so? One can get involved with a social cause. The Akshaya Patra Foundation is one such avenue for anyone looking to share their happiness with the disadvantaged. While you are ensuring someone is getting a chance to be happy, it’s a chance to light up many lives.

The non-profit fundraising ideas of an NGO, especially a credible one like Akshaya Patra, would be a good means of ensuring you have reached the right target group or groups.

Happiness cannot be measured, but can be felt, and can be contagious. If someone you know also notices that they too can be a part of the social cause, it’s no less than magical. Imagine the number of lives you can touch while indirectly encouraging others too to be part of the cause.

You can either make the donation yourself directly to the foundation or organize various fundraising activities. These can be anything engaging. The profit generated out of this can be used to donate towards the cause of feeding children. This way your source of joy will not be limited to your family and friends. Even these children whom you will be donating meals to can make you happy. As you donate towards the cause, you will be eligible for tax exemption in India.

This is just one of the ways you can reach the target group. In this case, mostly school children. By donating just Rs 950, you can assure a child a meal for one entire year. Apart from just filling their stomach, this will also help them prioritise studies over work.

Contribute towards ensuring every child in India is well-fed and educated. Donate to charity today.

A full-stomach meal improves a child’s efficiency

Malnutrition is prevalent among large sections of our population across the country. It disproportionately affects children from all sections of the society, mostly from disadvantaged backgrounds. The NGOs like Akshaya Patra Foundation play a major role in ensuring that the prevalence of malnourishment among children is minimised.Healthy childrenChildren who are able to have a square meal, are also more productive and thus, more efficient. The World Health Organization, says, “Adequate nutrition can raise your productivity levels by 20 per cent on average.” That should be enough of data to encourage the government and NGOs to work towards this goal.

In fact, one can get tax exemption if you contribute towards this cause of ensuring adequate nutrition for children. NGOs have a major role to play towards meeting this goal. So, why not make charity donations to an NGO in India like Akshaya Patra. Thus, your charity donations would reach the right people.

This is where Mid-day meal benefits are obvious. Most of the children benefiting from Akshaya Patra’s mid-day meal scheme are those from not from better-off backgrounds.  Many of them, who otherwise would have dropped out of school, stay on because they are able to focus on their studies as the nutritious food they get ensures that they stayed focused.

The Charity Donations the organisation receives from you could help feed children who are the future generations. Regular meal will help them stay focused on studies. As a result of the contributions, the school children will be able to stay on in school. Also, they will understand the importance of education and ensure that their children are well-fed and educated.

Thus, it’s time to tackle the probably hardest and most ongoing challenge we all face: nutrition. Let’s join hands to ensure that every child in the country is well-fed and educated. Donate to feed children, today.

Sponsor a Child and Develop Hunger Free India

As we celebrate 70 years of independence, let us pledge to sponsor a child and give him the education he deserves.  Millions of children in India suffer from hunger as a result of which their growth is stunted.

Hunger free India

We cannot truly call our country free unless we free our children from the shackles of hunger. Hunger in India is directly related to lack of education and growth among children. Akshaya Patra, an NGO that serves wholesome lunch to school children, is trying to free children from both hunger and illiteracy. When you choose to sponsor a child beneficiary of Akshaya Patra, you get tax exemption in India. But most importantly, you get to be a part of a mission that’s feeding and educating children of India. Let’s together develop a hunger free India.

The history of mid-day meal scheme in India dates back to the year 2000 when the Akshaya Patra Foundation began the mid-day meal programme in Bengaluru. The organisation began serving children nutritious meals, several donors came forward to sponsor children, several others donated vehicles and other resources. The organisation joined hands with the government and now serves meal to children in 12 states in India.

Donors in India started getting tax exemption, more resources were added, the Sponsor a Child programme helped get nutritious meals to many more children. The history of mid-day meal scheme that began with serving 1,500 children continued and served 1.6 million children and became the largest mid-day meal programme in the world.

It’s a scheme that creates a free environment for our children to grow and get education. Our children would make our future society that we visualise as independent and free. And we can ensure this only by setting our children free from hunger today. The mid-day meal scheme is creating history every day in India as more and more children come to school and get wholesome lunch.

If we donate for this cause, we can easily get tax exemption in India. Sponsor a child today.

Global Hunger Index 2016 Says India is at ‘Serious’ Level

The hunger problem has spread its roots so widely and deeply all around the world that eradication of hunger seems a distant dream without the coherence and cooperation of each one of us. We’ve earned enough of luxury for ourselves but we also need to realize that there’s no better expenditure of money than making a donation to feed the hungry. According to the 2016 Global Hunger Index Report, roughly one in four children is affected by stunting and 8 per cent of children are affected by wasting.

We witness many of them daily and the sight really breaks our heart. But we somehow manage to move on. If everybody starts working towards change, imagine the results? We need to make a paradigm shift and to perfectly exemplify this. Akshaya Patra, an NGO registered under Section 80G of Income Tax Act, has been doing outstanding work since 16 years. If you look at the history of mid-day meal scheme in India, you will notice two important positive results: increase in school enrolment rate and decrease drop-out rates. But there’s still so much to do.

The scourge of global hunger

Hunger is comprehensively measured and tracked at the global, regional, and country levels by a tool called the Global Hunger Index. According to the 2016 GHI Report, ‘Regionally, the highest GHI scores, and therefore the highest hunger levels, are still found in Africa, south of the Sahara and South Asia. As a matter of fact, India, a South Asian country, is a home to 33% of world’s undernourished children. And if our ignorance towards this problem is persistent, we’ll ultimately end up with distressingly high level of hunger around the globe. Now, this is where Akshaya Patra lets and urges us to help those in dire need of our sponsorship with an additional benefit of tax exemption in India. We need to realize our responsibilities towards society and raise funds for children charity.

tax-exemption

The two most critical sustainable goals

By pledging to eradicate undernourishment and provide unlimited food for education, Akshaya Patra targets the two most critical UN sustainable goals: Zero Hunger and Quality Education. The history of mid-day meal tells you that Akshaya Patra has presented a chance to fulfill dreams for those 1.7 million children who are deprived of education because of hunger. The splendid outcomes have made Akshaya Patra well-recognised across the world. With the perpetual expansion of such selfless programmes and philanthropic donors raising children charity open-handedly, the decrement in undernourishment and increment in literacy level is assured.

sdgs-by-food-for-educaion

A strong stand against all other national challenges

Various inhibitions to development like gender inequality, poverty, crimes, violence etc. are inextricably linked with education. Nelson Mandela realised this long back. He described education as a weapon to change the world and a great way to foster peace in societies. Unfortunately, many children are deprived of education because of financial incapability and social backwardness.

chose-education

Let’s embrace the humanitarian core and do some charity donations today, not as a gesture of tokenism but as an ardent yearning to defeat hunger. Make a donation in honour of someone today.

Of Quality Education: what defines quality?

Running a children’s charity would mean providing the little ones the basic necessities of life which they are deprived of for various reasons. Akshaya Patra opened its doors to Indian children in the year 2000 by providing them mid-day meals in government schools and government-aided schools. Vision: No child should be deprived of education because of hunger.

Ever since India began its Mid-Day Meal Scheme, the drop-out rates have decreased and enrolment rates in schools have increased. However, Mid-Day Meal is only one of the factors in making this possible. With the help of central and state governments, Akshaya Patra, an NGO in India, has been providing mid-day meals to school children for the last 16 years.

Now with more and more children in schools, the country is focusing on Quality Education – one of the goals proposed by UNDP (United Nations Development Programme). In 2015, the UNDP (United Nations Development Programme) proposed Sustainable Development Goals to 194 countries. Among the 17 aspirational goals with objective to transform the world, the fourth goal is Quality Education. Akshaya Patra is playing a vital role as an NGO in India in education sector, highlights the understanding on Quality Education.

sdgs-by-food-for-educaion

What is Quality Education?

According to a paper presented by UNICEF, five points define Quality Education.

  • Learners who are healthy, well-nourished and ready to participate and learn, and supported in learning by their families and communities;
  • Environments that are healthy, safe, protective and gender-sensitive, and provide adequate resources and facilities;
  • Content that is reflected in relevant curricula and materials for the acquisition of basic skills, especially in the areas of literacy, numeracy and skills for life, and knowledge in such areas as gender, health, nutrition, HIV/AIDS prevention and peace;
  • Processes through which trained teachers use child-centered teaching approaches in well-managed classrooms and schools and skillful assessment to facilitate learning and reduce disparities;
  • Outcomes that encompass knowledge, skills and attitudes, and are linked to national goals for education and positive participation in society.

(Source: unicef.org/education/files/QualityEducation.PDF)

The first point talks about students who are ‘healthy, well-nourished and ready to participate.’ This very objective is followed by Akshaya Patra in its large-scale feeding initiatives.

Quality Education, we believe leads to remarkable success. With literacy rates rising, we should also focus on providing inclusive and quality education to ensure progress.

UNDP states: “Achieving inclusive and quality education for all reaffirms the belief that education is one of the most powerful and proven vehicles for sustainable development. This goal ensures that all girls and boys complete free primary and secondary schooling by 2030. It also aims to provide equal access to affordable vocational training, to eliminate gender and wealth disparities, and achieve universal access to a quality higher education.”

Akshaya Patra’s Food for Education initiative embraces two most critical sustainable development goals – Zero Hunger and Quality Education. You can show your support by sponsoring a child’s meal for an entire academic year. Make a charity donation and win tax exemption in India.

Are you looking for a tax exemption? Try donating for a cause

Have you thought of making a donation and also earn tax exemption? It’s simple. As per IT sec 35AC/ 80GGA, if you make a donation of Rs 500 or more to Akshaya Patra, you will be eligible for a 100% tax exemption.

What is Tax Exemption?

The Akshaya Patra Foundation is an NGO registered under section 35AC of the Income Tax Act 1961. Therefore every donation above Rs 500 made to The Akshaya Patra Foundation is eligible for a 100% tax exemption under Section 80GGA.

The exemption is calculated by reducing the donated amount from your taxable salary. For instance, if your taxable income per year is Rs 200,000 and you make a donation of Rs 5,000 then your net taxable income will become Rs 195,000. Your tax will now be calculated on this new amount basis the prevailing tax rates.

Is it important to donate for a cause?

Yes, if you would like to witness equality and fairness in society. Many NGOs in India and individuals are working towards strengthening the nation by working towards education, empowerment, employment, improvement of living conditions and so on. An NGO’s role in India is of utmost importance today.

tax-exemption

Similarly, Akshaya Patra, an NGO in Bengaluru is working towards children’s education by providing them with fresh nutritious mid-day meals. In the last 16 years of our service, the growth has expanded from 1500 hundred to over 1.6 million beneficiaries pan India, thanks to charity donations. Food for Education is a concept where children are given meals within school premises so to encourage them to attend school. In India, many children often do not go to school and unfortunately, their economic condition is such that they are made to help parents with work or look after their younger siblings at home.

In a situation where there are often far too many mouths to feed, education is given least importance. The most practical solution to this problem is to bring children to school and provide them with one-time meal, known as Mid-Day Meal.

100% Tax Exemption in India

Akshaya Patra is a registered charity for children working across 11 states in India. Donations to Akshaya Patra are eligible for 100% tax exemption in India under Section 35 AC/ 80 GGA of the Income Tax. Under Section 35 AC of the Income Tax act, the Central Government – on recommendation from the National Committee for the Social & Economic Welfare – has notified the Project “Mid-Day Meal Programme run by The Akshaya Patra Foundation” as an eligible project for the allowing of 100% deduction of the contribution made by the Assesse.

When you make a contribution, you receive a certificate of 100% tax exemption benefit along with Thank You letter via courier or post. You may use the certificate to avail the benefit for the respective financial year. There are many reasons to donate to a great cause. This is one of them. Donate to charity today!

Revisiting 2016: Akshaya Patra’s Achievements and Future Plans

foodforeducation

Two billion meals and counting. One of the greatest achievements of Akshaya Patra during 2016 was undoubtedly the feeling of reaching this number that got us all thrilled and excited. We became conscious that 2016 was just one of the several years that has contributed towards reaching out to millions of children through Food for Education initiative. It was a result of year-to-year and day-to-day hard work of several people. The Akshaya Patra Foundation celebrated the serving of 2 billion meals, in the presence of Shri Pranab Mukherjee, Honourable 13th President of India in August 2016.

Methodical approach to reaching out children

As we surged ahead to achieve our targets in 2016, we kept our eyes on a very methodical approach to achieving goals. Akshaya Patra didn’t start off as simply a children’s charity. We knew the depth of the problem of hunger among children and so we started from the root.

kiga2016forakshayapatra

KIGA 2016

On October 15, 2016, The Akshaya Patra Foundation was awarded the prestigious Kalam Innovation in Governance Award 2016 (KIGA 2016). The award was presented during the 1st Edition of Dr APJ Abdul Kalam Memorial Summit on ‘Innovation in Governance’ held at Vigyan Bhawan, New Delhi. Though our children’s charity bagged several awards such as AVA Digital Award, Six Sigma Award, Nikkei Asia Award, this specific award on governance inspired us the most to reach out more and more children and set loftier goals.

More centralised kitchens in 2017

akshaya_patra_kitchen_karnataka

Centralised Kitchen

The largest Akshaya Patra kitchen can cook nearly 100,000 meals every morning. Currently 25 centralised (automated) kitchens and 2 decentralised kitchens are established across India. This has been made possible due to several charity donations through which people have sponsored kitchen equipment to expand our reach. A similar initiative was taken in December 2016 when Akshaya Patra and the Infosys Foundation laid the first foundation stone of Telangana’s first high-tech, Centralised Mega Kitchen in Khandi. The Infosys Foundation had given away Rs 18.03 crores, generously as charity donation committing to cover the entire construction cost of this kitchen, which will use highly advanced technology. Over 1,00,000 children in Telangana will be fed nutritious mid-day meals prepared in this kitchen, beginning the next academic year.

khandi

Partnership with Infosys Foundation

And now Akshaya Patra is all set to feed its nutritious mid-day meals to a greater number of beneficiaries in Uttar Pradesh (U.P). The Foundation will launch 11 new kitchens in the state. The groundbreaking ceremony for the same was performed by Honourable Chief Minister of Uttar Pradesh, Shri Akhilesh Yadav on December 26, 2016 at Lok Bhavan, New Secretariat, Lucknow. These new kitchens will be established in the districts of Varanasi, Ghaziabad, Agra, Allahabad, Kanpur, Etawah, Kannauj, Ambedkar Nagar, Azamgarh, Rampur and Ballia.

up

Groundbreaking ceremoney

In U.P, Akshaya Patra currently feeds 1,05,000 children and 66,000 children from its Vrindavan and Lucknow kitchens respectively, totalling to 1,71,000 children across 3021 schools. The introduction of the 11 new kitchens will take its nutritious meals to a total of 13 lakh or 1.3 million beneficiaries every day in the state, making this the Foundation’s largest intervention in India. Thus, every kitchen will feed over 1 lakh children from the next academic year.

All these initiatives have been happening with the help of several volunteers, Akshaya Patra staff, the Government of India and hundreds of donors. Like every year, Akshaya Patra has published audit reports keeping the finances transparent. Our charity donations are as per the rules of tax exemption in India and we keep our donors in the loop as to how their money is spent. You can join hands with us as we strive for another fruitful year of our quest for curbing hunger among children.

3 Stories of Hope from Akshaya Patra Would Make Your Day!

storiesofhope_600x400

Hope is a good thing. If you can still relate to this famous thought from the American classic The Shawshank Redemption, you are most likely an optimist. Regardless, it’s always good to know that hope can change things. It can inspire action and evoke positive spirits.

A lot of people engage in charity donations in the hope of building a better tomorrow. Had it not been for hope, several children charities wouldn’t get enough resources to help children. The Government of India works with several non-profit organisations and partners with local bodies in order to provide education, food and medical aids to deprived children. Donors are benefitted through tax exemption in India if they choose to donate to organisations such as Akshaya Patra.

Akshaya Patra is a children charity that engages in providing mid-day meals to school children around India. All of its donations get the benefit of tax exemption in India while the organisation works in tandem with the government.

manthan

Back here at Akshaya Patra a children charity, we get to reap the rewards of great work in the form of various hope stories that we get to hear from beneficiaries. One such child is Manthan Jikarda who studies in Class VI at Maharana Pratap Primary School in Surat, Gujarat. He says, “Akshaya Patra food is tasty and protein-rich, which is why we like it. It is very nutritious, prepared using carrots, pumpkins, and other such healthy vegetables. The menu is different every day; sometimes there is Dal Dhokli, sometimes Khichdi.”

But that’s not half as exciting as seeing him come to school every single day and attend his classes sincerely. Manthan aspires to be a stage actor, wanting to entertain a live audience with his dramatic performances. He is an active participant in various extra-curricular activities that the school organizes.

riddhi

Riddhi Barot, an Akshaya Patra beneficiary from Veer Narmad Primary School in Saradnagar Tarsali, Vadodara, studying in Class VII, is another touching story of hope. She is the daughter of a father who works in an electric shop and a mother who is a homemaker. She has two siblings –sister Siddhi (Class V) and brother Jai (Class II), studying in the same school. What truly makes Riddhi stand out is that her inspiration comes from the noted Gujarati writer, freedom fighter and social reformer, Jhaverchand Meghani. This girl wishes to become a pilot when she grows up. Her focus is a matter of wonder for both her teachers and her parents. Riddhi loves Science and English apart from being an active member of scouts and guides. It is children like her who keep us motivated and restore hope that investing in today’s children is the best way to change the world.

divya

Similarly, Shri Baba Amte Primary School in Surat often echoes with the sound of a beautiful voice. This singer is an 11-year-old Divya Chandrakar who studies in Class VI. Contradictorily enough, she wants to be a dancer. This Akshaya Patra beneficiary brings so much joy and cheer to her class when she enters. Divya Chandrakar wants to be a figure in elegance and become a dancer. She says, “At school, we can study, play, learn new things and have nutritious meals.”

These hope stories have often moved parents of other children and they have been motivated to send their children to school. Let’s add more stories of hope. Donate to charity today and win tax exemption.