How to save Income Tax on Income from salary for Individuals?by Akshaya Patra NGO in India - Akshaya Patra
Paying income tax is a mandatory duty for all citizens. This tax helps the government to maintain defence forces, build infrastructure like healthcare, schools etc. and take care of overall development of the nation. However, it gives tax benefits to those who care for the welfare of the society by contributing towards charities.
By definition, income tax is an amount that an individual has to contribute to the government from his earnings or income on a yearly basis. The amount of contribution depends on the income slab of the individual wherein tax rates keep increasing with an increase in the income. For instance, the income tax slabs and eligible deductions for the Financial Year 2018-19 was:
• Individuals with less than annual income of Rs. 2,50,000 – No tax
• Individuals with annual income between 2,50,000 and 5 lakhs – 0% to 5% tax
• Individuals with annual income between 5 lakhs and 10 lakhs – 20% tax
The above slabs are further divided based on age groups and gender, and policy revisions.
However, for the welfare of citizens and encourage people to get involved with social causes, the government has made provisions wherein tax payers can get tax exemption if they contribute a certain amount from their salary towards charitable organisations and NGOs or invest in housing, health, and education. Keeping our focus on social causes, the Section 80G of the Income Tax Act states that by contributing donations to a registered charitable trust or NGO, a donor can either claim for 100% or 50% tax exemption on the donated amount.
Charity donation and 80G benefits
Be it a national or international NGO, funds play a major role in operations, administration, and sustenance and expansion of their service. NGOs utilise the donated amount for the welfare of the society and environment depending upon their respective causes. For example, The Akshaya Patra Foundation, a mid-day meal NGO in India provides nutritious meals to school children to support their education. By implementing the Mid-Day Meal Programme, Akshaya Patra is bridging the gap between children and school and upholding the dreams and goals of millions of children. So, when you donate to Akshaya Patra, you are supporting health and education of children in need. Your generosity will provide the much-needed meals to children regularly because for most of these children the school meal is the only meal they receive for the entire day. This meal also incentivises parents to send their children to school rather than sending them to earn money. The mid-day meal gives hope to children that the future will be better and brighter.
Akshaya Patra is a registered NGO under Indian Trusts Act 1882 and is also registered under under Section 12A (a) of the Income Tax Act 1961 as well as under Section 6 (1) (a) of the Foreign Contribution (Regulation) Act 2010. This makes Akshaya Patra eligible to receive donations and also give 50% tax exemption to all its donors under 80G of the Income Tax Act. This tax season, consider this pioneer mid-day meal NGO for availing -exemption. Your kindness will shape the future of the country’s children in the most desirable way. Donate and save tax.
Disclaimer: Each of the above-mentioned tax exemption plans 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.
The Akshaya Patra Foundation is a mid-day meal NGO in India serving more than 1.76 million children across 12 states of India. This meal helps children to attend school regularly and also improves the literacy rate. Support school meals of millions of children and avail tax benefits under Section 80G.
Created on Feb 25th 2019 05:57. Viewed 127 times.
No comment, be the first to comment.