IN India’s philanthropic landscape, great change happens when compassionate individuals and trailblazing NGOs come together. At the heart of this relationship is the desire to make the world a better place. In addition to this noble endeavour is also the ability of citizens to contribute to social causes while enjoying substantial tax benefits in the form of an 80G deduction.
This blog contains frequently asked questions about how compassionate individuals can also benefit financially while making donations to NGOs. Designed to encourage charitable contributions, Section 80G of the Income Tax Act offers a unique opportunity for donors to pledge their financial support to NGOs while receiving significant tax exemptions in return.
Here are 10 FAQs on tax exemption and 80G deduction on your charitable donations:
1) What is tax exemption?
Tax exemption in India refers to the relief granted by the Government of India that allows individuals to exclude specific income or transactions from their taxable earnings. This can include various deductions, exemptions or credits, promoting economic activities, social welfare or specific sectors.
2) How can I save taxes by donating to NGOs?
Donations to NGOs in India under Section 80G of the Income Tax Act enables tax savings. Contributions to eligible NGOs with an 80G certificate qualify for deductions, reducing your taxable income. By using this provision, you can support charitable causes while benefiting from valuable tax incentives.
3) What is Section 80G of the Income Tax Act?
Section 80G of the Income Tax Act provides tax deductions for donations made to registered charitable organisations. Donors can avail themselves of deductions on their taxable income, encouraging philanthropy and supporting social causes while enjoying financial benefits under this provision.
4) How is an 80G deduction calculated?
An 80G deduction is calculated based on the donated amount, subject to specified limits. Typically, donors can claim a deduction of 50% or 100% of the donated sum, depending on the nature of the recipient organisation and as specified in the Income Tax Act.
5) What tax exemption benefits do I get?
When you donate to an NGO in India, you may qualify for tax exemption benefits under Section 80G of the Income Tax Act. This provision allows you to deduct a portion or the entire donated amount from your taxable income, providing financial incentives for supporting charitable causes.
6) Once I make a donation, when will give.do issue a tax exemption certificate?
After making a donation to an NGO on the give.do platform, the receipt of your donation will be sent to you within a period of two weeks. For tax exemption, donors will receive 10BE by the end of May. Form 10BE validates the deduction claimed and is issued by the organisation receiving the donation.
7) What is the procedure to claim tax exemption under Section 80G?
To claim tax exemption under Section 80G when donating to an NGO, ensure the NGO is registered under 80G, provide accurate address and PAN card details where the information is requested.
8) What documents do I need to submit to claim a tax deduction?
The following documents are required to claim a tax deduction under Section 80G: a receipt by the organisation to which the donation was made detailing the donor’s name, address, amount donated, PAN number of the trust and other information that may be included by the registered NGO.
9) What information do I need to submit to claim a tax deduction?
To claim tax exemption under Section 80G through Form 10BE for donations to an NGO, the following details need to be provided: name of the donor, PAN of the donor, address of the donor, the amount donated and the amount that is eligible for deduction. These details need to be submitted when filing income tax returns.
10) Are NRIs eligible for tax exemptions on donations?
Yes, non-resident Indians (NRIs) are eligible for tax exemptions on donations made to NGOs in India under Section 80G of the Income Tax Act. By contributing to registered Indian NGOs, NRIs can avail themselves of tax benefits while supporting charitable causes and social initiatives.
Donate to charity and save taxes with 80G deduction
As we enter into the tax season, understanding 80G tax exemptions allow us to make a difference in the lives of people while having financial benefits. On Give.do, you can join a multitude of other individuals who are changing the world around them while engaging in smart tax savings. Explore NGOs on Give.do here and create a brighter and more inclusive future for our nation.
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Give exists to alleviate poverty by enabling the world to give. Established in 2000, Give, together with its partners, is the largest and most trusted giving platform in India. Give enables individuals and organizations to raise and donate funds conveniently to any cause they care about, with offerings including crowdfunding, corporate giving, cause marketing, and philanthropy consulting. Give’s community of 2.6M+ donors supports 3,000+ verified nonprofits, serving 15M+ people across the country.
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