As the tax season approaches, many people look for ways to save money on their tax bills. One way to do this is by donating to a registered charity or non-governmental organization (NGO). Not only does this allow you to support a cause you care about, but it can also help reduce your tax burden. In this blog, we will discuss how donating to Narayan Seva Sansthan (NSS), an NGO based in India, can help you save tax while making a difference in the lives of people with disabilities.
What is Narayan Seva Sansthan?
Narayan Seva Sansthan (NSS) is a charitable organization based in Udaipur, Rajasthan, India. The organization was founded in 1985 by Padma Shri Kailash Agarwal, and it aims to serve people with disabilities, especially those who are marginalized and have limited access to healthcare and education. NSS provides a range of services, including free medical treatment, rehabilitation, education, and vocational training. The organization also conducts mass marriages and distributes food and clothing to the needy.
How can donating to NSS help save tax?
Donating to NSS can help you save tax in two ways:
- Tax deduction under section 80G of the Income Tax Act: NSS is a registered NGO, and donations made to it are eligible for tax deduction under section 80G of the Income Tax Act. This means that you can claim a deduction of up to 50% of the donated amount from your taxable income. For example, if you donate Rs. 10,000 to NSS, you can claim a deduction of Rs. 5,000 from your taxable income. This can help you save a significant amount of tax.
- Tax exemption under section 35AC of the Income Tax Act: NSS is also eligible for tax exemption under section 35AC of the Income Tax Act. This means that if you donate to NSS, you can claim a deduction of the entire donated amount from your taxable income. However, this deduction is subject to certain conditions, such as the minimum amount of donation and the nature of the project for which the donation is made. Therefore, before making a donation, it is advisable to check if the project you are donating to is eligible for tax exemption under section 35AC.
How to donate to NSS?
Donating to NSS is easy and convenient. You can donate online through the organization’s website (https://www.narayanseva.org/donate) or through various payment modes such as net banking, debit/credit cards, and mobile wallets. You can also donate through cheque or demand draft by sending it to the organization’s address.
Donating to Narayan Seva Sansthan is not only a great way to support people with disabilities, but it can also help you save tax. By making a donation to NSS, you can claim tax deductions under section 80G and 35AC of the Income Tax Act. However, before making a donation, it is advisable to check if the project you are donating to is eligible for tax exemption under section 35AC. So, go ahead and make a difference in someone’s life while also saving tax.