Have you thought of making a donation and also earn tax exemption? It’s simple. As per IT sec 35AC/ 80GGA, if you make a donation of Rs 500 or more to Akshaya Patra, you will be eligible for a 100% tax exemption.
What is Tax Exemption?
The Akshaya Patra Foundation is an NGO registered under section 35AC of the Income Tax Act 1961. Therefore every donation above Rs 500 made to The Akshaya Patra Foundation is eligible for a 100% tax exemption under Section 80GGA.
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 195,000. Your tax will now be calculated on this new amount basis the prevailing tax rates.
Is it important to donate for a cause?
Yes, if you would like to witness equality and fairness in society. Many NGOs in India and individuals are working towards strengthening the nation by working towards education, empowerment, employment, improvement of living conditions and so on. An NGO’s role in India is of utmost importance today.
Similarly, Akshaya Patra, an NGO in Bengaluru is working towards children’s education by providing them with fresh nutritious mid-day meals. In the last 16 years of our service, the growth has expanded from 1500 hundred to over 1.6 million beneficiaries pan India, thanks to charity donations. Food for Education is a concept where children are given meals within school premises so to encourage them to attend school. In India, many children often do not go to school and unfortunately, their economic condition is such that they are made to help parents with work or look after their younger siblings at home.
In a situation where there are often far too many mouths to feed, education is given least importance. The most practical solution to this problem is to bring children to school and provide them with one-time meal, known as Mid-Day Meal.
100% Tax Exemption in India
Akshaya Patra is a registered charity for children working across 11 states in India. Donations to Akshaya Patra are eligible for 100% tax exemption in India under Section 35 AC/ 80 GGA of the Income Tax. Under Section 35 AC of the Income Tax act, the Central Government - on recommendation from the National Committee for the Social & Economic Welfare - has notified the Project “Mid-Day Meal Programme run by The Akshaya Patra Foundation” as an eligible project for the allowing of 100% deduction of the contribution made by the Assesse.
When you make a contribution, you receive a certificate of 100% tax exemption benefit along with Thank You letter via courier or post. You may use the certificate to avail the benefit for the respective financial year. There are many reasons to donate to a great cause. This is one of them. Donate to charity today!