Have you donated money for charity, social or philanthropic purposes, or, have made contributions towards a National Relief Fund? If yes, then you could use these donations to reduce your tax outgo. The Income Tax Act encourages charitable deeds towards the poor and needy, and offers donors tax benefits under Section 80G. ngo consultancy
We provide information and professional advice on important aspects of government policy initiatives for development through the following instruments, to assist organizations and NGO’s involved in various development activities and strengthen the efforts. We provide services in the following fields:NGO, Trust, Firm, Society, Cooperative Society, Company, Projects etc.
NGOs can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The Income Tax Act has certain provisions which offer tax benefits to the "donors".ngo amendmentshould avail the advantage of these provisions to attract potential donors. Section 80G &12A is one of such sections.
The NGO should not have any income which are not exempted, such as business income. If, the NGO has business income then it should maintain separate books of accounts and should not divert donations received for the purpose of such business. The bylaws or objectives of the NGOs should not contain any provision for spending the income or assets of the NGO for purposes other than charitable.
80G - Income Tax Exemption NGO can avail income tax exemption by getting itself registered and complying with certain other formalities, but such registration does not provide any benefit to the persons making donations. The Income Tax Act has certain provisions which offer tax benefits to the "donors". ngo amendment should avail the advantage of these provisions to attract potential donors. Section ngo consultancy is one of such sections.
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Every donation made to CRY is eligible to a 100% tax exemption under section 80GTo avail of the same you must specify at the time of making a donation that you wish to claim a 100% exemption.
1- Donation must be paid in money and not in money’s worth: - the deduction is allowed if the donation is made in monetary terms it means either cash or cheque or demand draft. Deduction won’t be allowed if the payment is any kind of nature explained in 5 of section 80G of income tax.
2- The donation may be paid either out of taxable or exempted income: - taxability of the source of the donation is not relevant.
1. Ensure that the fund /institution is approved by the Income tax department for deduction under this section. For check this, please ask for a photocopy of 80G eligibility certificate from the fund/institution.
As per clarification provided on Income Tax department website, deduction under Section 80G can be claimed through employer only in case of contribution to the institutions specified.