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Questions to ask about tax exemptions on charity donations in India-converted

Philanthropy in India has been developing, as more individuals feel the sense of needing to give back to the society they live in. The simplest way of contributing is by donating to the various food NGOs in India and social organizations working to alleviate the existing issues of the country.

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Questions to ask about tax exemptions on charity donations in India-converted

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  1. Questions to ask about tax exemptionson charity donations inIndia Philanthropy in India has been developing, as more individuals feel the sense of needing to give back to the society they live in. The simplest way of contributing is by donating to the various food NGOs in Indiaand social organizations working to alleviate the existing issues of the country. These impending issues range from rampant malnourishment, illiteracy, lack of healthcare, inadequate facilities for the elderly, etc. You can join hands with these organizations to truly facilitate positive change and feel a great sense of satisfaction, but also reduce the amount of taxes youpay! As per Section 80 (G) of the Income Tax Act, Individuals, Hindu Undivided Families, Companies and Partnership Firms can claim tax exemptions once they Donate money to NGO.The decision to allow this exemption was taken by the Government and financial authorities to encourage more Indians to donate towards socialcauses. If you wish to make a charitable donation and subsequently claim a tax deduction, here are a few guidelines to keep inmind: What mode of payment should youuse? Tax exemptions under 80 (G) can only be availed if the donations above ₹ 2000 are made through modes other than cash. Donors can make monetary contributions through cheques, demand draft, online banking, net banking, or card payments. In- kind donations such as textbooks, clothing, or food items are appreciated by NGOs but do not come under the purview of Section 80 (G) to claim adeduction. What documentation do you need to claim anexemption? While filing the Income Tax returns form, you will have to submit proof of the charity donation made to claim a deduction. NGOs will provide donors with a receipt as proof ofpayment. It is important to ensure that the receipt contains information including the name of the donor, amount contributed, and date of payment. Details regarding the NGO or charitable organization including the registered name, address, and PAN number must also be mentionedclearly.

  2. How much of your donation will be claimed as adeduction? You must verify the qualifying limit of the NGO before making a donation and claiming a deduction. NGOs across India either offer 50% exemption or 100% exemption.

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