Charitable Donations & Tax Benefits: How Sightsavers India Helps You Save

 

Charitable Donations & Tax Benefits: How Sightsavers India Helps You Save

Giving to charity is a long-standing custom in all cultures. Community members have been giving away resources without expecting payment for thousands of years. Improvement on a community-wide level is the prize for them. Today, millions of non-governmental organisations (NGOs) are working to solve problems like food scarcity, poor healthcare, poverty, etc. Donations are vital for these NGOs to continue their essential work.

Yes, charity has traditionally been associated with kindness, altruism, and the positive aspects of human nature. However, people sometimes overlook the numerous advantages that giving and contributing have for them. One of the advantages is the charitable donation tax deduction.

Individuals should carefully research NGOs to ensure alignment with their desired cause.

For those passionate about helping people with eye health issues, they need to know about the charity Sightsavers.

This blog post will explore the tax deduction benefits available to donors and how Sightsavers India can contribute to their financial savings.

Understanding Section 80G of the Income Tax Act
Contributions to specific relief funds and charity organisations are eligible for a tax deduction under Section 80G of the Indian Income Tax Act. It allows for deductions of either 50% or 100% (depending on the organisation) of the donated amount.

1.Eligibility
This provision allows the following taxpayers to claim a deduction:

  • People, Businesses, and Firms
  • HUF, or Hindu Undivided Firm
  • Indian non-resident (NRI)
  • Any other individual

Nevertheless, Section 80G does not allow deductions for all donations. Deductions are only available for contributions made to designated funds.

2.Mode of Payment
Taxpayers can claim Section 80G deductions when they donate using the following methods:

  • Cheque
  • Demand draft
  • Cash (for contributions under INR 2,000)

Note: In-kind gifts like food, clothing, materials, medications, etc., as well as monetary donations over INR 2,000 are not eligible for Section 80G deductions. For donations over INR 2,000 to be eligible under Section 80G, they must be given in a form other than cash.

3.How to Claim It?
Donors must provide the following information on your income tax return in order to be eligible for this deduction:

  • The donors’ name
  • PAN of the completed
  • The donors’ address
  • Contribution amount: the split between cash and another method
  • The amount that can be deducted

The relevant tables in the ITR must include the aforementioned information.

  • Table A: Donations with no qualifying limit that are eligible for a 100% deduction
  • Table B: Donations with no qualifying limit that are eligible for a 50% discount
  • Table C: Subject to the qualifying maximum, donations are eligible for a 100% deduction.
  • Table D: Subject to the qualifying maximum, donations eligible for a 50% reduction

Donations that are Eligible for 100% Deduction without Qualifying Limit

Below are some examples of donations that are eligible for a 100% deduction without a qualifying limit:

  • Prime Minister's National Relief Fund
  • Communal Harmony National Foundation
  • Blood transfusion councils, whether they be state or national
  • The National Sports Fund
  • The National Cultural Fund
  • Any fund established by the Gujarat State Government specifically to aid earthquake victims in Gujarat
  • Fund for the National Control of Drug Abuse (effective FY 2015–16)

Donations that are Eligible for 50% Deduction without Qualifying Limit

Here, the Prime Minister’s Drought Relief Fund is eligible for a 50% deduction without a qualifying limit.

Donations that are Eligible for 100% Deduction Subject to 10% of Adjusted Gross Total Income

  • Donations to the government or any authorised local government agency, organisation, or group that will be used to support family planning
  • Donation made by a business to the Indian Olympic organisation or any other recognised Indian organisation or organisation in order to support or build sports and games infrastructure in India.

Donations that are Eligible for 50% Deduction Subject to 10% of Adjusted Gross Total Income

  • Any other fund or organisation that meets the requirements outlined in Section 80G (5).
  • To be used for any charity purpose other than promoting family planning by the government or any local authority.
  • Any Indian authority established to address and meet housing needs or to plan, develop, or enhance cities, towns, villages, or both.
  • Any company mentioned in Section 10(26BB) for advancing minority community interests.
  • For any notified temple, mosque, gurudwara, church, or other location that needs repairs or renovations.
So, here is the information related to 80G.
Donations made to Sightsavers NGO are eligible for tax deductions under Section 80G of the Income Tax Act. Established in 1966, this NGO champions the right to independence and dignity for individuals with irreversible blindness while working to eliminate preventable blindness. Through partnerships with state governments, it scales up initiatives in eye health, inclusive education, and social inclusion. Owing to these reasons, it is one of the best online donation sites India.

Conclusion
The tax advantage that comes with donating is the most evident advantage of charitable giving. Governments all around the globe have established a system that offers financial incentives to donors because they understand the positive effects of donating. Section 80G of the Indian Income Tax Act allows for a tax deduction for donations to certain relief funds and charitable organisations.

Sightsavers charity, established in 1966, offers donors the dual benefit of tax deductions under Section 80G and the opportunity to support people with eye problems. It champions independence for individuals with irreversible blindness and prevents avoidable blindness, partnering with state governments to expand their reach in eye health, inclusive education, and social inclusion. This makes it one of the best online charity donation sites.

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