Donate To Ngo And Save Tax – Know How

By Author: kanan james
Total Articles: 17
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More than 50 percent of people living under the poverty line call for the need to take developmental steps for ensuring their better lifestyle. By the ways of donation, volunteering services and adoption of communities, Samaritans are doing their bit. To encourage people to participate generously in various charitable initiatives, the Government offers 100% exemption from income tax. Read on to find what donations qualify for tax exemptions.

It is important for all of us to stand up for the weak and unprivileged sections of society. NGO India works actively towards bringing up the weaker sections of the society. They provide them opportunity to rise above the odds. The poor and downtrodden people are largely dependent on the donations made by people, from all sections of the society. The Government, in turn, rewards the donors with tax exemption on the donations they make.

Donations under Section 35AC

Section 35AC is meant for professionals and business owners who make income by way of their enterprises. Proprietorship firms, NGOs, corporates and ...
... companies need to register themselves under Section 35AC to be recognized as the entities who can accept tax-free donations.
The companies registered under Section 35AC contribute mainly to developmental programs that offer better opportunity to the needy people for education, shelter etc. The donations made under Section 35AC go primarily to the cause related to:

• Education of the children of needy people
• Home building projects for under-privileged people
• Rural development programs
• Family welfare and immunization
• Employment programs for rural people
• Encouragement of sports activities
• Medical camps in rural areas

Donations under Section 80G

Donations under 80G qualify for 100% exemption from tax. Nothing could be a better way of contributing towards causes that are beneficial for elder care and guarantee a better quality of life for the downtrodden. Here is a list of charitable and developmental funds that attract 100% deduction from taxable income.

1. Prime Minister Earthquake Relief Fund
2. National or State Blood Transfusion Council
3. University of National Eminence approved by prescribed authority
4. Government fund for medical relief to the poor
5. National Foundation for Communal Harmony

NGOs need contribution and you need relaxation from tax

NGOs are working hard to make things better for the downtrodden and those who are hit badly by natural calamities. These organizations have volunteers, service providers and a number of vendors who work together to make a project successful. A variety of expenses related to the functional aspects of the projects can be met easily if people come forward and donate generously for the cause.
The procedure to make donations to NGO is easy and simple. Whatever donations that a donor makes, is validated by a stamped receipt which can be presented at the time of filing returns. Employer at the time of paying salary deducts tax at source and the same is reflected in Form 16.
Donation made under Section 80G and donation under Section 35AC can be deducted, in full, from the gross taxable salary. Thus, contributing to noble causes like sponsoring education, shelter, meals for the downtrodden offers you some respite from tax liability. Think about giving back to the society and donate generously to bring smile on the face of someone needy. A small thoughtful gesture of yours can bring a turning point in someone’s life.