Did you know that you can donate to charity AND get 50% tax exemption on your donation? Yes, it’s true.
Avail this benefit of making donations before March 31st, 2023 to save maximum taxes for AY 2023-24! Read on to find out more.
Investment and insurance will help lower your taxable income and we’re certain you know how to maximize your allowances via Section 80C, 80D, etc. But did you know there’s a tax-saving gem in Section 80G?
Section 80G of the Income Tax Act, 1961 allows tax payers to claim 50% or 100% deduction on donations to eligible funds, institutions, charities and trusts. Thus, donating to qualified NGOs not only changes lives but also allows you to save taxes.
If you donate Rs 5,000 to an NGO eligible for 50% deduction under Section 80G, you can claim a deduction of Rs 2,500 from your taxable income i.e. 50% of the donation amount in one shot. This deduction applies to all donations subject to certain limits.
It is important to note that the rules for availing tax deduction on donations have changed from FY 2021-22. In order to claim the deduction u/s 80G you are now required to obtain Form 10BE from the recipient NGO/s which discloses the total donations received by the NGO/s from you during the financial year. So don’t forget to obtain the Form 10BE from all supported NGOs and verify the information mentioned therein. Please note that Form 10BE is shared by NGOs after the end of the financial year.
Find credible and qualifying NGOs seamlessly!
You obviously can’t spend your valuable time visiting NGO websites in search of credible projects and Sec 80G certificates. HelpYourNGO has made your job easier:
- We have a database of 700 Indian NGOs working across 13 causes, 23 states and 3 union territories, and all 17 UN Sustainable Development Goals (UN SDGs) – and you can easily find NGOs with Sec 80G certification which have been verified by the HelpYourNGO team
- Our Search & Compare Tool lets you find NGOs meeting your unique giving criteria – be it cause, geography or income size
It’s as simple as:
- Entering your giving criteria
- Selecting the NGO/s to support after reviewing their info and comparing the data across multiple parameters
Pro tip: In case you would like a ready list of verified NGOs to support, refer to our blog here.
What to do next
Once you’ve found an NGO you like, click on the ‘Donate Now’ button and fill in the mandatory information, as required by the Income Tax Authorities. Once you have completed your donation, HelpYourNGO will send a confirmation email to you. A donation receipt along with the Sec 80G certificate will be shared within 3 days of the donation being processed. Form 10 BE will be shared by 30th June 2023. No hassles for you.
Remember to complete all your donations by 31st March to get full tax advantage!
Feel free to write to info@HelpYourNGO.com if you’re looking for a personalized giving experience.