Donate to NGOs and save tax. Here’s how.

What is tax exemption?

Doing charity is a noble deed and several nations’ tax departments also acknowledge it!

To encourage people and organisations to donate a part of their earnings for the welfare of challenging socioeconomic communities, the law offers mandatory tax deductions on contributions made to certain charitable institutions.

In India, Section 80G and 80GGA of The Income Tax Act of 1961 allows the assessee to claim tax exemptions on donations made to NGOs and trusts registered under the Income Tax Act. The taxpayer can receive either a 50% or a 100% deduction on tax depending on the non-profit entity they donate to.

Some charitable institutions also qualify for the same deduction but up to a maximum limit of 10% of the taxpayer’s adjusted gross income. So, donations made to some institutions are eligible for 80G deductions without any upper limit while in some others, the maximum amount of deduction is limited as per the prescribed provisions.

Additionally, donations made to foreign trusts, political organisations and scientific research can be claimed for tax exemptions but not under this clause. Section 80GGC offers a tax exemption for donations made to political parties and Section 80GGA allows a deduction for contributions made for scientific research.

Some key points to remember while claiming 80G deductions:

• All taxpayers are eligible to claim deductions under Section 80G
• Contributions to specified non-profit institutions should be made through cheques or cash
• Cash donations exceeding ₹2000 are not allowed for deductions. Thus, donations over ₹2000 should be made in any mode other than cash to qualify as a deduction under Section 80G
• In-kind contributions do not qualify for tax deduction under Section 80G
• From FY 2020-21, one can claim deductions by continuing with the old tax regime. But they cannot claim tax exemptions for donations made during the year if they opt for the new tax regime
• If one volunteers for an NGO in India, they can claim travel expenditures provided they maintain accurate records for the same
• One must provide the stamped receipt issued by the charitable entity as evidence of the contribution made to claim the deduction. The receipt must mention the name, address, pan number, registration number of the trust and the validity of the registration along with the name of the donor and the amount donated in words and figures.

Nourish for 1 year with 1 donation

Claiming tax deductions while gaining goodwill through CSR activities has become prevalent among people and organisations in India over the years.

But keep in mind that not all NGOs fall within Section 80G's eligibility to grant tax deductions to their donors. 80G certificates can only be issued by those non-profit institutions that have been authorised by the Commissioner of Income Tax (Exemptions).

The Akshaya Patra Foundation is one such NGO registered under Section 12A (a) of the Income Tax Act, 1961. It is renowned across the world for implementing the Government’s largest school-feeding programmes for numerous children coming from lower socioeconomic backgrounds.

Currently, it is running the Mid-Day Meal Programme and Breakfast Feeding Programme under the PM Poshan Abhiyaan for Government and Government-aided school children, Feeding the Homeless Mothers Programme, Anganwadi Feeding Programme, Digital Education Programme and many more.

The 22-year-old NGO nourishes over 2 million beneficiaries every day with meals that meet nutritional guidelines given by the Supreme Court and Ministry of Education. All the meals are made in the state-of-the-art kitchens across 65 locations following international hygiene standards.

Your one donation can nourish people in need and help them upskill themselves for an entire year!

Donate and save tax

All online contributions to Akshaya Patra over ₹500 are eligible for a 50% tax exemption, and contributors will receive a tax exemption certificate as proof.

So, plan your charitable contributions well to get the most out of Section 80G deductions.

Double your rewards by gaining tax relief along with the satisfaction of supporting someone in need.

Donate and save tax!

The Akshaya Patra Foundation is an Indian Ngo implementing the Mid-Day Meal Programme. Your support to Akshaya Patra can potentially improve lives of millions of children across India and also avail you tax exemption.