Consider tax exemption for a cause
The universe has a unique way of working and we never know how and when it brings us an opportunity to support and do something good for others. Here is a small incidence that introduced me to the path of charity. Just a week ago, I was consulting with my friend on how to cut down on tax. During the discussion, we came upon various ways such as housing loan, house rent allowance, children education allowance, medical insurance, donations, and the like. Though I had heard of these means, but contributing donation was something new for me. Curiously, I furthered the discussion on it. And, patiently my friend familiarised me with the whole concept of tax deduction on charity, the gist of which I have narrated below.
Witnessing the impactful groundwork of NGOs, the Government of India has made a provision wherein contributing donations to registered NGOs or charitable trusts can exempt you from paying taxes on the donated amount under Section 80G. You can either claim for 100% or 50% exemption on the donated amount based upon the NGO you have donated and the terms set by the Income Tax Act. This is applicable for both online donations and offline donations.
For instance, I identify with children-specific causes such as the right to education, child rights, and child health and development. So, I chose to contribute my taxable income to The Akshaya Patra Foundation, an NGO for children implementing the Mid-Day Meal Programme in association with the Central Government of India and various State Governments. The Mid-Day Meal Programme is an initiative that provides freshly cooked nutritious school lunch to government school and government-aided school children on all school days. And, Akshaya Patra aims at providing ‘unlimited food for education’ with the intention of supporting the education of children. This NGO has been in the service of children for the past 17 years, with a current beneficiary base of over 1.6 million children across 34 locations in 12 states of India. The tangible impact of Akshaya Patra is clearly visible in the stories of children and the impact studies that have been conducted in association with third-party research agencies.
Personally, I was convinced with the service of Akshaya Patra and decided to make my foray into charity by donating to the Foundation. For more information on charity tax exemption, just click on tax-deductible donations. I am glad that I am saving tax by supporting millions of children, and would suggest everyone to connect with the cause.