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: 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: 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: 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.
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.