There is a hidden part of compassion in all of us. And, the thought of going out and doing something for society must have crossed our minds many times. But, how often do we actually go ahead and do it? We are so caught up in our daily grind that our virtues take a backseat. But, as they say, ‘where there is a will, there is a way.’ So, one of the many ways that can give you a platform to actively participate in social activities is by getting involved in charity work. Every charity works to benefit, uplift and sustain society by covering factors related to social, legal, environmental, ecological, health, economic, educational, welfare, and the like. The causes of each non-governmental organization directly or indirectly reflect the broader perspective of global organizations such as UN, UNESCO, WHO, ILO etc. Because charity works at the grassroots level of society; their engagement with a cause leads to more sustainable results. Therefore, when you engage with non-governmental organizations, it provides you with an avenue to participate constructively in a cause.
In view of the important role of charity and to encourage the participation of individuals and businesses in various causes, the Government of India has made tax exemption provisions in India for all charitable donations. Yes, pursuant to Section 80G of the Income Tax Act, donated donations to a registered charitable trust may provide exemption to the donor of 100% or 50% of the amount donated under the type of charitable trust and the Income Tax Act clauses. Exceptions apply to online donations and offline donations. However, because of the convenience and convenience, many donors have started using the online mode to donate to charity. And, because non-governmental organizations understand the value of every penny, donors can rest assured that their money is being used the right way. Therefore, considering that this form of tax exemption is a noble way to contribute to society.
Let’s take a few examples, if a donor identifies with environmental causes like reforestation and contributes to Save Green, then the taxable income will be used to increase green cover and start some green programs. Similarly, if a donor identifies with child education and nutrition, then contributes to TAPF, a non-governmental organization in India. So you’re basically contributing to a healthier and more educated society. And, you are also a catalyst in nation building.
Well, as you can tell from the examples mentioned above, your taxable income has the potential to change society in many ways. Therefore, don’t you think giving online donations or offline donations to charities can make the best use of tax exemptions in India to safeguard your virtues, save your hard-earned money while also taking part in uplifting society?