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Tax Exemption on Donation

 

Income Tax Exemption in India: How does it work?

Tax exemption is the financial exclusion that lowers the taxable income. Tax exemption is therefore a mandatory exemption to a general rule. Tax exemptions are given to boost certain economic activities such as the activities of  the Charity Organization-s.

 What is Section 80G of income tax act?

The deductions under the Section 80G are the contributions that you have made to some charitable organizations or institutions. Donations to Narayan Seva Sansthan are exempt from 50% tax under section 80G of the Income Tax Act. Tax benefit is valid only in India.

 

What Tax exemption benefit do I get?

As per the revised tax exemption act, effective April 1, 2017, donations to Narayan Seva Sansthan will be eligible for 50% tax exemption under Section 80G of Income Tax Act. By contributing to Narayan Seva Sansthan, you will help in the Rehabilitation Center of the differently able and also help yourselves with tax deduction benefit.

The exemption is calculated by reducing the donated amount from your taxable salary. For instance, if your taxable income per year is Rs 200,000 and you make a donation of Rs 5,000 then your net taxable income will become Rs 197,500. Your tax will now be calculated on this new amount basis the prevailing tax rates.

 

What is the minimum amount that needs to be donated to get a tax exemption?

A minimum of Rs 500 needs to be donated to avail tax exemption under IT sec 80 G for Online Donations.

 

Do you issue Tax receipts? How long does it take for them to reach?

Yes, you can expect your receipts in Hard Copy within 10 days after you have made the donation. However Soft Copy Receipt of the donation is made available instantly.

 

Are there tax exemptions on cash donations as well?

Cash donations above Rs.2, 000 are not applicable for 80G certificates.

 

When can I get a tax exemption certificate?

We generate the tax certificate within 8 days from the date of contribution made through online donations. Including the courier process it takes 10 days for the exemption certificate to reach you. If you contribute offline it takes 15 to 20 days.