Tax Exemption
The Government of India has made provisions to encourage people to make donations. This means that one (individual/organisation) can donate their money towards a social cause and claim exemption under Section 80G of the Income Tax Act. Donating to an NGO is the best way to gain income tax exemption.
Frequently Asked Question
As per the revised tax exemption act, effective April 1, 2017, When you make donations above ₹500 to Sparsh Ngo, your donation amount will be eligible for 50% tax exemption under Section 80G of Income Tax Act. The exemption is calculated by reducing the donated amount from your taxable salary. For instance, if your taxable income per year is ₹2,00,000 and you make a donation of ₹5,000 then your net taxable income will become ₹197,500. Your tax will now be calculated on this new amount basis the prevailing tax rates.
A minimum of ₹500 needs to be donated to avail tax exemption under IT sec 80 G. However, cash donations above ₹2,000 are not applicable for 80G certificates.
We generate the tax exemption certificate within 10 days from the date of Submit Tax Exemption Form after online donations. And takes 15 days for the exemption certificate to reach you.
NRI (Non-Resident Indian) donors, who are Indian citizens, holding an Indian passport are eligible to tax exemption under section 80 G of the Income Tax Act. Don’t forget to mention your Indian PAN Card Number in the online donation form to avail the tax benefits.
Tax Exemption Certificate Form
As per the Indian Income Tax Department’s rules, a donor is required to add their address and PAN number in case they wish to receive the 80G tax-exemption certificate.