Income Tax Exemption List!

 Almost all of us have contemplated doing our bit for the community at some point in our lives. Donating to a cause you deeply believe in, and making a difference through that donation, is a commendable act. Because of the noble nature of this gesture, the government extends its full support to charitable causes. Indian Income Tax Act Section 80G allows you to make a tax deduction for donations made to any charitable organization.

Donations you make to charitable trusts or organizations registered to offer you tax exemptions may qualify for an 80G certificate that exempts your taxes in part or in full. As an example, the tax exemption under section 80G is available to charitable organizations and trusts registered under section 12A. The maximum allowable deduction is however a criterion. The excess amount will not qualify for a tax deduction if the aggregate of your donations exceeds 10% of your total gross income. The 80G certificate entered the law book in 1967-68 and has continued to be an important tax-saving document, also consisting of an 80Gexemption list. Those who give an eligible donation under 80G are eligible for a tax deduction. Organizations, funds, trusts, and NGOs eligible for deductions under section 80G have been notified by the government.

For example, if you donate 2000 rupees to an NGO that offers 100% tax exemption, then your taxable income becomes the total amount minus the donation amount. Based on prevailing tax rates, your taxable income is now revised to reflect the newly revised net income. Certain donations (under section 80G of the Income Tax Act) allow you to deduct only 50% of the amount donated, while sections 80GGA or 35AC allow the full amount donated to be deducted. Depending on your taxable income, you can deduct up to 10% from these expenses. It should however be noted that any donations made to political parties (for miscellaneous campaign expenses, for example), foreign trusts, or organisations not registered with the Income Tax Department are not deductible. No tax rebate is available based on 12A or 80G.

NRIs sometimes donate to charitable organizations in India. The Indian government recognizes such contributions from non-resident Indians, and citizens with Indian passports are eligible to receive 100% tax exemption under section 35 AC or 80 GGA of the Income Tax Act. In order to claim tax benefits, NRIs are required to mention their Indian PAN Card Number when they donate online in the prescribed form.

In the future, when you donate to an NGO you could keep your accounting team informed of your investment and other income tax-related savings in advance by letting them know in advance when you plan to contribute. Companies in India cannot restrict donations or use any other tax-saving measure, and tax exemptions for Form 16s can be offered by all organizations throughout the country. Tax Deducted at Source (TDS) will not be deducted, ensuring donors receive no additional deductions.

Giving to a globally renowned organization like Save the Children will not only result in tax exemptions, but you will also feel good about helping India's marginalized children.

For more information on the 80G exemption list, visit www.savethechildren.in now!

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