Articles
Make The Most Of Tax Exemption By Making Donations
by Kanan James NGO INDIARather than all the donations made to social causes, there is a vast gap between the demand of money from the poor and the sum contributed by donors. This perhaps, is the cause why the Government has given tax benefits on donations.
The sum contributed to a charitable institution draws tax exemption. Section 80G of the Income Tax Act has been here for a very long time and it’s here to remain, as well. Numerous tax exemptions have been removed; however the tax concessions for donations have lasted, for sure.
Eligible Contribution: There are many trusts registered in India that claim to be involved in charitable deeds. A lot of them are genuine, however few are untrue. So that just genuine trusts get the income tax benefits, the Government has made it mandatory for all the charitable organizations to register themselves with the Income Tax Department. And for this reason, the Government has made 2 sorts of registrations essential u/s. 12A & U/s. 80G. Only if the charitable trust follows 12A, they will get the income tax exemption official document. It is generally identified as 80G official document.
The government from time to time issues a list of authorized charitable organizations as well as funds that are authorized to obtain contributions that meet the requirements for tax exemption. The list consists of trusts, societies as well as corporate bodies included under Section 25 of the Companies Act 1956 as non-profit companies.
Just The Donations In cash/cheque Are Entitled For The Tax Deduction: Donations in kind are not entitled for any tax benefits. E.g., during natural adversities like floods, earthquake, several organizations start campaigns for gathering clothes, blankets, food etc. Such contributions will not get you any tax benefits. No deduction in this section is permissible in case if the payment goes beyond Rs 10000/- , except if the sum is remunerated by any mode except cash.
Limit On Donation Sum : There is no limit on the amount of contribution. But in few cases, there is a maximum limit on the eligible sum.
So, support a non- profit organization in India through their online donation platform which aims to channel and offer resources to needy all over India. Moreover, a donation under 80g is tax exempted, too. You can make donations for several causes, e.g., you can help poor elderly to make their living worthwhile by making the self-dependent as well as happy.
Author Bio:
Author of the article is social writer, writes about Non-Profit Organization - HelpAge India. If you want to help poor elderly, make Donations for Help Poor Elderly. To make donations online just log on HelpAge India.
The sum contributed to a charitable institution draws tax exemption. Section 80G of the Income Tax Act has been here for a very long time and it’s here to remain, as well. Numerous tax exemptions have been removed; however the tax concessions for donations have lasted, for sure.
Eligible Contribution: There are many trusts registered in India that claim to be involved in charitable deeds. A lot of them are genuine, however few are untrue. So that just genuine trusts get the income tax benefits, the Government has made it mandatory for all the charitable organizations to register themselves with the Income Tax Department. And for this reason, the Government has made 2 sorts of registrations essential u/s. 12A & U/s. 80G. Only if the charitable trust follows 12A, they will get the income tax exemption official document. It is generally identified as 80G official document.
The government from time to time issues a list of authorized charitable organizations as well as funds that are authorized to obtain contributions that meet the requirements for tax exemption. The list consists of trusts, societies as well as corporate bodies included under Section 25 of the Companies Act 1956 as non-profit companies.
Just The Donations In cash/cheque Are Entitled For The Tax Deduction: Donations in kind are not entitled for any tax benefits. E.g., during natural adversities like floods, earthquake, several organizations start campaigns for gathering clothes, blankets, food etc. Such contributions will not get you any tax benefits. No deduction in this section is permissible in case if the payment goes beyond Rs 10000/- , except if the sum is remunerated by any mode except cash.
Limit On Donation Sum : There is no limit on the amount of contribution. But in few cases, there is a maximum limit on the eligible sum.
So, support a non- profit organization in India through their online donation platform which aims to channel and offer resources to needy all over India. Moreover, a donation under 80g is tax exempted, too. You can make donations for several causes, e.g., you can help poor elderly to make their living worthwhile by making the self-dependent as well as happy.
Author Bio:
Author of the article is social writer, writes about Non-Profit Organization - HelpAge India. If you want to help poor elderly, make Donations for Help Poor Elderly. To make donations online just log on HelpAge India.
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About Kanan James 
NGO INDIA
35 connections, 0 recommendations, 133 honor points.Joined APSense since, October 16th, 2014, From New Delhi, India.
Created on Dec 31st 1969 18:00. Viewed 0 times.
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