How can NGOs help Individuals or Businesses in Claiming Tax Deductions or Exemptions?

What if you could make a positive impact on society while saving on your taxes too? Donating to an NGO, not only helps you to contribute for a noble cause but allows you to reap financial benefits. Under Section 80G of the Indian Income Tax Act, 1961, donating to a registered NGO allows taxpayers to claim tax deductions and reduce their overall taxable income. In this blog, we will explore in detail how NGOs can help individuals or businesses in claiming tax deductions.

How can one save tax by donating to NGOs?

Donating to Non-Governmental Organizations (NGOs) can help you claim tax deductions and lower your taxable income. Under Section 80G of the Indian Income Tax Act, donations to specific relief funds and charity organizations are eligible for a specific tax deduction. To claim the deduction, you must obtain a receipt from the NGO as proof of the donation. The NGO you are donating to must have a current 80G certificate from the Income Tax Department to be eligible for donation tax exemption.

How can Individuals and Businesses Claim Tax Deductions?

Given below are the steps to claim tax deductions on charitable donations:

1. If you are choosing an NGO to donate to, you must make sure that the NGO is registered under Section 80G and is eligible to provide tax deductions.
2. The receipt provided by the NGO must have your name, address, and the donation amount. Additionally, the receipt should clearly mention the NGO’s name, address, and PAN details.
3. At the time of filing your tax returns, you can submit your Permanent Account Number (PAN) along with the receipt.
4. To claim the deduction, declare the donation under Section 80G in your income tax return form.

 About Genesis Foundation

Genesis Foundation, an NGO in Gurugram, Haryana provides financial assistance for life-saving heart treatments to underprivileged children diagnosed with Congenital Heart Defect (CHD). The foundation provides financial resources for heart treatment for underprivileged children within the age group of 0-18 years and from families with a monthly income that does not exceed Rs 20,000.

At Genesis Foundation, 100% of donations from individual donors are used towards the treatment of children with no allocation towards administrative costs. This transparency has earned the trust of their donors and made sure that every rupee donated is impactful. You too can donate to this cause and become eligible for a 50% tax deduction under Section 80G of the Income Tax Act. You will receive a soft copy of the donation receipt, which can be submitted to claim the tax benefit. Click here to donate and make a difference today!

Conclusion

Making a donation to charity is a rewarding experience that benefits both society and your financial well-being. By working with NGOs like Genesis Foundation, you can save the money you spend on tax while at the same time support a cause that makes an impact on the life of an individual.

References:

https://cleartax.in/s/donation-under-section-80g-and-80gga

https://www.indiafilings.com/learn/section-80g-deduction-income-tax-act/#:~:text=Section%2080G%20tax%20exemption%20is,lowering%20your%20overall%20tax%20liability.