Akshaya patra is an NGO in Bangalore working towards eliminating classroom hunger through midday meals. By being a part of this venture by donating to this noble cause one can not only get the satisfaction of doing good but also enjoy tax benefits
Salaried employees are major contributors to the bucket of taxpayers in a country. Income tax is paid as a part or percentage of the annual income that an individual earns. It is every citizen’s duty to pay his income tax for all the rights he earns in the country while he earns as a salaried employee or as an entrepreneur.
According to the Government of India’s e-Filing portal of the Income Tax Department, there were 8.83-crore taxpayers till 7th September 2021.
The money collected by the tax department is used to provide various facilities for the benefit of the citizens. How do you think the Government of India is able to provide facilities free of cost? For example, public utility services like metro construction, road construction, free health care facilities for the underprivileged, all come from the money that is paid when you pay taxes.
The Government has made various provisions to help its citizens gain tax exemption in India.
Paying tax is inevitable, however making smart investments that will help you save as well, is a smart choice people can opt for.
Tax exemption in India
Depending on the nature of the income, there are various categories for tax exemption in India. The most common of these are: House Rental Allowance (HRA), Education loan, car loan, Leave Travel Allowance (LTA), contribution towards Employee’s Provident Fund (EPF) Scheme, etc.
House Rent Allowance
If you are a salaried employee who lives in a rented house, you stand a chance to get the benefit of HRA. This amount could either be totally or partially exempted from income tax. However, if you are not living in a rented property but claim HRA, this entire amount will be taxable.
Leave Travel Allowance
If you are a salaried employee and your employer has the provision of LTA, you can claim for the exemption of your travel within India under Section 10(5) of the Income Tax Act, 1961. However, tax exemption does not include food expenses, shopping and stay, but, only for travel of the individual, their family including children.
Deductions under section 80C, 80CC and 80CCD (1)
This is by far, the most extensively used option to save tax. To encourage individuals to save and invest in retirements plans, the Indian Government has made provisions for individuals under these sections. These include Life Insurance premium, Equity Linked Savings Scheme (ELSS), Employee Provident Fund (EPF), Contribution to PPF Account, National Pension Scheme, National Saving Certificate (NSC), etc.
NGO donations under section 80G
An individual can get involved in philanthropic donations for tax write off. Charitable organisations give a platform for an individual to engage in humanitarian services as well as to appreciate the noble work by making you eligible for tax exemption too. The deductions under Section 80G of the Income Tax Act of 1961 towards charitable organisations are either eligible for 50% or 100% tax exemption depending on the NGO being supported.
When you contribute by making donations for tax write off, you are not only saving on your taxable income, but you also add goodness in your life for helping people in need. Thousands of not-for-profit organisations receive donations for tax write off, but the help that they provide to the organisation to work towards its cause is often gone unnoticed.
Benefits of making NGO donations
Every little support to people in need gives them relief from their suffering. The Akshaya Patra Foundation is an NGO in India that provides free and unlimited food for education of children coming from challenging socio-economic backgrounds. It has the distinction of being the world's largest NGO run school lunch programme spread across 60 locations in 14 states and 2 union territories of India.
Akshaya Patra provides nutritious and locally palatable meals to 1.8 million children coming from low-income sections of society.
Akshaya Patra is an NGO known for 21 years of relentless service, financial transparency, and credibility. All your donations above INR 500 made towards this NGO, are eligible for 50% tax exemption under section 80G of the Income Tax Act. You will also get a tax exemption certificate within seven working days with your name and contribution amount. So the next time you plan on making tax saving investment, think of the benefits of donating to NGOs.
Rejuvenating health of children
Akshaya Patra foundation is an NGO in India which follows Midday meal guidelines and provides healthy meals and snacks to the students which fortifies the nutrition requirements of the beneficiaries
Fighting an emerging crisis: Elderly & Homeless
Homelessness is a concern not just in developing nations, but also in developed nations. India is among the top 10 countries with maximum homeless population. Akshaya Patra, an NGO in India has stepped in to support homeless mothers by providing their daily share of food.
Let your benevolence reach its destination by donating a delivery van
The Akshaya Patra Foundation is a midday meal scheme implementor since past 21 years. It provides freshly prepared, nutritious meals to more than 1.8 million children across India, on each school day.
