We all know that charity is a holy thing and we learn to do charity from our home. So, if you are habituated to doing charity and you have started up an NGO to help others, there is a piece of good news for you. Your NGO will help you to save during your ITR filing. If you want to know more about it, you can consult with an experienced chartered accountant in Kolkata Chandan Agarwal. And for now, please read the blog carefully to clear your queries.
A Brief on 80G Exemption
In India, charitable works pay you benefits. According to Section 80G (Indian Income Tax Act), a person can have the benefits to save in tax if you contribute or donate a certain portion of her income in India. Even, if you run an NGO or a non-profit organization then you have to register your organization and validate it with the income tax department of India to obtain the certifications.
Who Is Eligible for 80G Exemptions?
Individuals who donate only to charitable trusts and institutions are eligible to get tax exemptions. But, if anyone donates to private trusts or political party funds, they are not eligible to receive a tax deduction. Even, if you donate to a trust or NGO that does not have 80G certification then you would not get any tax exemption.
The reason why, religious trusts, NGOs, or any non-profit organizations need to show the donation statement they receive over the year. Donors are eligible to receive tax benefits when the 80G eligible trust or organization furnishes the information along with necessary proof.
Conclusion,
So, if you want to get tax exemption under Section 80G then you must donate to a registered trust or organization. It would be better if you discuss this with an experienced CA like Chandan Agarwal in Kolkata before making any donation.
