India is one of the world’s largest countries and a developing market economy. The main economic sectors are services, manufacturing and agriculture.
The government’s ongoing efforts to grow the nation’s economy have begun to show results despite the enormous setbacks and interruptions caused by the COVID-19 outbreak over the previous three years. An increase in the number of newly registered businesses, job enrolments in the organised sector, the rise in start-ups as well as an increase in employment opportunities clearly point to an increase in job creation in the country.
Increased job creation boosts the income of the working class and as income rises, so does the amount of tax that an individual or organisation must pay.
In addition to allowing taxpayers to deduct benefits and expenses from their taxable income or wage, the Indian government mandates that all taxpayers file an income tax return (ITR) by a specific time to avoid fines or penalties. The Indian government permits a standard deduction of ₹50,000 from an employee’s net income.
What is Section 80G?
Section 80G of the Income Tax Act permits people to deduct charitable contributions from their taxes, demonstrating the government’s unwavering support for charity endeavours. However, it should be noted by taxpayers that not all charitable organisations or non-profits are qualified to provide donors with a Section 80G deduction.
Under Section 80G, a taxpayer—whether an individual, business or partnership—may deduct income taxes from donations made to designated relief funds and charitable organisations. Donations may be taxed at 100 per cent or 50 per cent, with or without restrictions, under Section 80G, depending on the organisation’s registration.
Double Win: Feed Children. Save Tax.
Akshaya Patra – an NGO in India that provides hot and nutritious meals to government school children, is registered under Section 80G of the Income Tax Act which allows a 50% tax exemption on donations above ₹500. This is especially advantageous because donating to the NGO not only nourishes and educates young minds across India but also enables tax payers to save money while they become ambassadors of hope and dreams.
