The Role of CSR in Corporate Tax Savings: How Companies Can Benefit from 80G Donations

As per the Companies Act of 2013, Section 135(1), all companies having a stipulated turnover must contribute at least 2% of their net profits towards their Corporate Social Responsibility (CSR).

One significant benefit of corporate donations to charity is the ability to claim tax deductions under Section 80G of the Income Tax Act, 1961. By donating to eligible charitable organizations, companies can not only fulfil their CSR obligations but also avail tax savings on charitable donations.

If you are a corporate looking to make donations to charity and benefit from 80G donations, Genesis Foundation is a great option.

Donating to Genesis Foundation

Genesis Foundation is one of the most notable organizations working in the healthcare space by helping children born with congenital heart disorders. They work with doctors and hospitals all over India to support critically ill underprivileged children with heart defects between the ages of 0-18 years from all over India.

So far, they have given life a chance to 4,900+ children through the support of many of their CSR partners. Some of the major CSR partners of Genesis Foundation are WPP India Foundation, Oracle India, HT Parekh Foundation, SBI Life Insurance, The Himalaya Drug Company, ACRE, etc. The Foundation works as an implementation partner with corporates to help them meet their CSR goals.

Their work is extremely transparent, and the case study of every child that has ever been supported is available on their website, including various other reports.

How can Companies Benefit from 80G Donation?

Genesis Foundation is registered under Section 80G of the Income Tax Act. This means corporate institutions can claim a 50% tax deduction on their contributions. Companies can make their 80G donations in India through cheques, demand drafts, or cash. Cash donations exceeding ₹2,000, as well as in-kind contributions, are not eligible for tax benefits. The foundation provides a soft copy of the donation to its donors that can be used at the time of filing ITR.

Documentation Requirements for Tax Benefits

To avail tax deductions on 80G donation for NGO in India, companies should maintain detailed records of all contributions made to NGOs, including receipts. In many cases, corporations may be required to file specific forms with their tax returns to claim deductions or credits associated with charitable contributions. When you donate to Genesis Foundation, you will get a soft copy receipt of the donation made that can be submitted to claim the tax deductions.

 Conclusion

By partnering with Genesis Foundation, companies can support the treatment of underprivileged children with congenital heart defects while meeting their CSR objectives. To find out more about our CSR partnerships write to us on [email protected]

References

ClearTax. (n.d.). Corporate Social Responsibility (CSR) – Companies Act, 2013. ClearTax. https://cleartax.in/s/corporate-social-responsibility
Tax2win. (n.d.). 80G deduction: Donations to charitable institutions.  https://tax2win.in/guide/80g-deduction-donations-to-charitable-institutions