Ishan Arora

Introduction to Income Tax Deductions on Donations to NGOs

ishanarora01 — Tue, 29 Dec 2020 15:17:45 GMT

Filing taxes can be quite a taxing experience, especially for the first-timers! General information regarding various types of papers, taxation laws and amendments, accounts, investments, income tax deductions and exemptions, etc. usually bombards the taxpayer! However, knowledge and evaluation of the topic in the discussion is a useful skill that will boost an individual’s confidence to deal with the process of paying taxes. There are a few important things to know that will prove to be useful while filing income tax, especially for first-time taxpayers. Calculations on tax are based on the income earned during a financial year; the period is marked from April 1 of the present year to March 31 of the subsequent year. An Income Tax Deduction can be availed for the amounts spent on medical expenses, tuition fees, and charitable contributions. Also, one can invest in several schemes like retirement saving schemes, life insurance plans, national saving schemes, etc. The Indian Government also provides Income Tax Deduction options to propagate the participation of commercial institutions and individuals in profitable social activities. For example, Section 80G of the Income Tax Act permits the taxpayers to contribute funds to charitable institutions, giving them tax benefits on monetary donations, which can be availed by offering proof of payment.Taxpayers can claim Income Tax Deduction under Section 80G only if their donation is made through cheque, draft or cash. While one can donate any amount to a charity/NGO, the deduction is only obtainable for a cash donation that does not surpass INR 10,000. Donation supplies like food, clothing, medical provisions, etc. are not considered under Section 80G deduction claims. To avail of this tax benefit, one must present the customary proof of payment given by the trust/entity as an attestation of the donation. One must also ensure that this proof includes the name, address, PAN Number, registration number of the trust, name of the donor and amount donated, written in figures and words. These particulars are poignant and will be required at the time of filing ITR to claim the deduction. Save the Children works to make a difference in the lives of underprivileged children, every day. It runs on donations to sustain its projects and continues setting up many more with the aim of making a difference. Any donation made by you – one-time or monthly, will be utilised by it to plan and implement projects that help benefit the disadvantaged children of India.

How To Claim Donations Under 80g

ishanarora01 — Thu, 29 Oct 2020 08:42:33 GMT

Even if you are new to filing taxes or are seasoned taxpayers, you’re always looking for ways to exempt yourself from paying a huge sum of money as Income Tax. We all look for various methods to save tax, whether at an individual or organizational level. Here is a quick read on how to claim donations under 80G?

For those who haven’t heard of Section 80G of the Income Tax Act, 1961 – any contributions made in the form of donations to certain relief funds and charitable institutions can be availed as a deduction under Section 80G of the Income Tax Act. However, not all donations are eligible for deductions under Section 80G. Only those donations made to prescribed funds qualify as a deduction, which could be claimed by any taxpayer – individuals, company, firm, even NRIs!

It is important to note for any taxpayer that deduction under Section 80G can only be availed when the contribution is made through a cheque, draft, or cash. The deduction is not allowed for cash donations exceeding INR 10,000. From the commencement of FY 2017-18, any donation made in cash exceeding INR 2,000 is not allowed as deductions. Therefore, in this case, donations above INR 2,000 should be made in another mode of payment other than cash to qualify as deductions. Also, contributions such as food, material, clothes, medicines, etc. do not qualify for deductions under Section 80G. Various donations specified under Section 80G are eligible for a deduction of up to either 100% or 50% with or without restriction.

To avail the benefit of the deduction, one must present the standard receipt given by the trust/entity as an attestation of the donation made. While the receipt is being made, one must ensure that the receipt contains the name, address, PAN Number of the trust, the registration number of the trust, name of the donor and, the amount donated, written clearly in figures and words. These details are extremely crucial and will be required at the time of filing Income Tax Returns to claim deductions.

International NGOs like Save the Children have set the highest benchmarks in morals, values, transparency, and capability. It presents a substantial donation tax rebate to donors. Committed to uplifting the downtrodden, Save the Children is present in 80 countries internationally, working to make a difference in the lives of underprivileged children. They run solely on donations to sustain their projects and continue setting up many more, which is why a person’s support is vital. Any donation made by you – one-time or monthly, will be utilized by them to plan and implement projects that help benefit the disadvantaged children of our nation.

Did you know that all the donations made to Save the Children India are eligible for tax exemption under Section 80G of the Income Tax Act, 1961?

Source: https://www.youthkiawaaz.com/2020/09/how-to-claim-donations-under-80g/

Banish the Evil of Child Marriage in India

ishanarora01 — Fri, 18 Sep 2020 06:53:31 GMT

Child marriage is defined as a marital union of a girl and boy before the age of 18, which also includes informal unions wherein children under the age of 18 live with a partner as if they are married. This illegal act violates children’s rights and places them at an increased risk of violence, exploitation, and abuse. It is certain that the girl and boy are affected by the marriage, however, the girl child is affected disproportionately; it puts an end to her childhood. A girl married as a child is prone to be illiterate, experience domestic violence, become infected with sexually transmitted diseases, bear a child at an early age that could potentially endanger her life due to complications during pregnancy and childbirth, etc.

While the pervasiveness of girls getting married before 18 years has decreased from 47% to 27% between 2005-2006 and 2015-2016 respectively, the sheer number is still too steep. Estimates suggest that every year, at least 1.5 million girls under 18 years get married in India, which makes it home to the largest number of child brides in the world. Close to 16% of underage girls between 15-19 years are currently married.

Ending child marriage requires efforts across all sectors and at every level of the societal fabric. It requires us to concede the multiple drivers behind this practice in various contexts and, therefore, adapt our mediations respectively. Today, we have an opportunity to act on this crippling issue and accelerate our efforts to help change the lives of children threatened by the evils of child marriage. Why should you know how to stop child marriage, you ask? It is because it will safeguard the future of our nation - its children.

Few of the ways, to begin with, that we can help diminish the practice of child marriage include:

1) Enable girls with information, skills and support systems

2) Implement economic support and incentives to girls as well as their families

3) Educate and encourage parents and community members to think progressively

4) Improve girls’ access to a high-quality education

5) Strengthen supportive laws and policies against child marriages

If you have thought of more ways on how to stop child marriage, reach out to us and let us know! Visit www.savethechildren.in today!

Ending child marriage requires improved, targeted grants from international donors and governments. Additionally, many NGOs have been associated with children ensuring that their rights are not violated by providing them

with opportunities to educate, nourish, and protect themselves. The work done by Save the Children in this

regard has been monumental; to date, they have helped 10.1 million children through their initiatives and programs across 19 states in India.

Isn’t it our responsibility to help the children of our nation with a better life?