Income Tax Benefits of donating towards a Congenial Heart Disease Treatment
March 7, 2023 | Contributed by Preeti Kumar
“We make a living by what we get. We make a life by what we give.”
– Winston S. Churchill
It is that time of the year again when we are ready to bid farewell to the cold winter months and welcome spring. This is also the month, where most of us in India, are going to be busy with filing our income tax returns. We are busy with tax planning and looking for ways that help reduce or save the total amount of tax we pay.
Under section 80G of the Income Tax Act, 1961, one can claim a tax deduction on an amount donated
Whether you are a salaried person, an entrepreneur, or earn an income through interest and rent, one has to pay taxes to the Government. However, Sections 80C, 80 G ang 80 D of the Income Tax Act, help you by providing a list of ways you can save taxes.
In India, section 80 G of the Income Tax Act, 1961, allows you to claim tax deductions on donations made to charitable organisations. It is important to note however, that only donations made to charitable institutions registered under section 12 A can qualify for deductions. The donation should be made through a taxable income source.
Cash deductions of more than Rs 2,000 are not eligible for deduction. For donations above ₹2,000 to qualify as a tax deduction, the contribution has to be made using other modes of payment. The various contributions are eligible for a deduction of up to either 100% or 50%, with or without restriction, under Section 80G.
Every donation has the power to save the life of a child
In case you are wondering on why you should donate to an NGO like Genesis Foundation for helping with congenital heart disease treatment to save taxes, here are a few reasons:
1) The ability to make a difference: As humans we are social beings. We strive to live and be effective in the environment we live in. We strive to make an impact and a difference. For some it’s the sense of fulfilment they experience by helping someone and for some, it’s the sense of satisfaction they may derive out of their ability to make a difference in whatever way possible.
Every donation made has the power to impact a life. If one donates to a charity like Genesis Foundation, every rupee donated is used and directed towards helping a child with a congenital heart disease treatment. At the Foundation, 100% of donations made by individual donors are used towards the treatment of congenital heart defects with no allocation towards administrative costs. Thus, donating to charities like ours gives a sense of purpose where you know that you have been a part of something big.
2) Multiple ways to donate: With changing times and evolving technology, there are a plethora of ways and platforms that make the donation process convenient. We understand that people and organisations have a lot on their plates and may not have the time and the ability to put in as much effort to physically visit a place to make the donation.
The Foundation accepts a variety of payment methods, including bank transfers, Paytm wallets, net-banking, and writing checks. To learn more about all the choices, visit our Donate page. In addition, we provide contributors the option of making a one-time donation or enrolling in a monthly recurring donation with any amount of their preference.
3) Tax Rebate: in addition to be being part of a larger cause, you get the opportunity to avail of a tax rebate on the amount donated. This deduction can be claimed by India residents, Non Resident Indians, Hindu Undivided Family and a company. To claim a tax deduction on the amount donated, the following documents need to be submitted:
- The organisation’s registration number
- 80 G certificate
- Stamped receipt from the organisation: this should contain the PAN number, name and address of the organisation where the amount has been donated.
At Genesis Foundation we provide a receipt for all donations received to help with availing tax benefits.
4) Sense of Fulfilment: The act of giving instils a higher sense of fulfilment. It caters to the needs of our conscience. Moreover, for some people it may even help improve the sense of self. There are many studies that show that giving gives a sense of happiness and fulfilment to us. People who donate feel happier and have a lot of gratitude. At the Foundation, we share a report of the child who has been supported with your donation so that you are aware of the difference your donation has made.
Frequently Asked Questions
Are donations for congenital heart disease treatment tax-deductible everywhere?
Donations for congenital heart disease treatment, such as those made to Genesis Foundation, are tax-deductible in India under Section 80G of the Income Tax Act. However, the tax savings on charitable donations may vary depending on the country and its tax laws. At Genesis Foundation, all Indian Residents are entitled to a 50% tax deduction under Section 80G of the Income Tax Act, 1961. Donors also receive a soft copy receipt which they can use to avail tax deductions at the time of filing their ITR. In the USA, donations made to IRS-recognised 501(c)(3) organisations focused on congenital heart disease are also tax-deductible. In the UK, charities eligible for Gift Aid can increase the value of donations, which may allow donors to claim additional tax relief. Tax savings on charitable donations may vary depending on the country and its specific tax laws.
What documents are required to claim income tax benefits on donations?
To claim income tax benefits on donations under Section 80G, you need a valid donation receipt from the eligible NGO or charitable organisation. This receipt should include the NGO’s name, registration number, PAN, donation amount, date, and an authorised signature or stamp. Additionally, ensure your donation was made through acceptable modes such as cheque, bank transfer, or online payment (especially for amounts above ₹2,000) to qualify for the deduction. When filing your income tax return, you must declare the donation amount along with these documents to claim the tax benefit.
Is there a maximum limit on the amount I can donate for tax benefits?
Section 80G of the Indian Income Tax Act, 1961 allows individuals and businesses to save tax by donating to an NGO. Depending on the organization you are making a donation to, you can either get 100% or 50% deduction. While the deduction percentage varies, there is no maximum limit on the amount one can donate, offering greater tax-saving opportunities. You can donate to Genesis Foundation, an NGO working towards the treatment of children diagnosed with CHD and become eligible for a 50% tax deduction under Section 80G of the Income Tax Act.
What are the benefits for corporate donations towards congenital heart disease treatment?
Corporate donations towards congenital heart disease donation treatment offer several benefits. Under the Companies Act 2013, companies meeting specific financial criteria are mandated to spend at least 2% of their average net profits on Corporate Social Responsibility (CSR) activities, making such donations a compliance opportunity. Supporting children with congenital heart defects not only fulfils this legal requirement but also enhances the company’s brand image and builds trust among customers and stakeholders. Additionally, it promotes employee engagement and morale by fostering a sense of purpose and pride in contributing to a meaningful cause. Moreover, such initiatives align with the United Nations Sustainable Development Goal 3, which aims to ensure healthy lives and promote well-being for all ages, reinforcing the company’s commitment to global health and social impact. Companies can also receive tax deductions under Section 80G of the Income Tax Act, reducing their taxable income.
Are there any specific forms or procedures to claim tax benefits on donations?
Section 80G of the Indian Income Tax Act, 1961 allows individuals and businesses to save tax by donating to an NGO. Before donating to an NGO, ensure that the NGO you are donating to is registered under Section 80G. To claim tax benefits on donations, you must have a receipt that should mention your name, address, and the donation amount. The NGO’s name, address and PAN details should also be mentioned. While filing out the ITR form, you must enter the donation details in the appropriate tables in the return form based on your donation type: 100% deduction without limit, 50% deduction without limit, 100% deduction with limit, or 50% deduction with limit.
Thus, while you are planning your tax saving this year, donate to a charity like Genesis Foundation and help us facilitate interventions such as a hole in heart treatment for underprivileged children in India. Every donation made to Genesis Foundation can be used to avail a deduction of up to 50% of the donated amount under section 80G of the Income Tax Act. A receipt is issued when we receive the donation that will help you with the donation.
Every donation has the power to help save the life of a child.