Donating for Tax Exemption- Akshaya Patra

Your involvement with an NGO gives you the opportunity to
contribute constructively towards the betterment of the
society. Comprehending the potential of NGOs, the
Government of India introduced Section 80G as tax
exemption in India to encourage people to donate towards
charitable trusts by providing income tax relief. Under Section
80G of the Income Tax Act, the amount donated towards an
NGO is allowed to be claimed as a deduction at the time of
filing income tax return, provided the charitable trust or relief
fund you have donated to is registered to offer you exemptions
from taxes. The assessee can either claim income tax
exemption 50% of the amount donated as a deduction
depending upon the criterions set by the Income Tax Act.
Over the years, there has been a visible change in the number
of individuals who donate towards charity. According to the
World Giving Index 2016, about 203 million Indians donated
money during 2015 as opposed to 183 million in 2014.
Simultaneously, there has also been an increase in the
awareness of various issues. In addition, the government is
also taking steps to ensure transparency and accountability of
the funds received by the NGOs, thereby furthering the
confidence of donors on charitable trusts.
Financial contributions play a crucial role in the operations of
an NGO. And that’s why NGOs respect every penny of your
donation and maximise its potential towards achieving their
goals pertaining to their respective causes. For example, if you
donate towards PETA, you are ensuring animal rights; if you
are donating towards Save Green, you are helping to increase
green cover and the like. Similarly, when you donate to
Akshaya Patra, you are contributing towards school lunch for
children in government and government-aided schools. This
means while you are supporting a cause you are also saving
tax under 80G deduction.
As they say, ‘change does not happen overnight’, it takes a lot
of perseverance, commitment, and dedication. Hence, only
with a continuous concerted effort from all of us can bring
about the change we want to see. For example: when you
donate towards the Mid-Day Meal Programme, you are
supporting children to continue schooling by countering
hunger. This will create a nourished and educated generation
who will be assets for their families in particular and the
nation in general. So, while you support the healthy
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