The limit of deduction is either 50% or 100% of the donated sum depending on the charitable organisation you have chosen. This is in view of the segregation made by the Income Tax Department wherein certain Trusts and NGOs can offer 100% deductions to their donors and some can offer 50% deductions on the donated amount. Well, one such registered NGO in India that provides tax benefits for your donations is The Akshaya Patra Foundation. Akshaya Patra is a mid-meal NGO serving school lunch to children in government and government-aided school across 12 states of India.
- The Foundation is registered as a not-for-profit organisation under the Indian Trusts Act, 1882 (Reg. No. 154).
- It is registered under Section 12A (a) of the Income Tax Act, 1961.
- The Foundation is also registered under Section 6 (1) (a) of the Foreign Contribution (Regulation) Act, 2010 (FCRA Reg. No. 094421037).
As per the revised tax exemption act, effective 1 April 2017, donations above Rs. 500 to Akshaya Patra will be eligible for 50% tax exemption under Section 80G of Income Tax Act. But, you must note that a cash donation of above Rs. 2,000 is not applicable for 80G certificates. The benefits of 80G deduction are applicable only for Indian and NRI donors (Indian citizens, holding an Indian passport). To know about tax exemption for foreign donors, click here.
By contributing to Akshaya Patra, you will help in providing school lunch to millions of children who come socio-economic background. The school lunch helps such children to continue schooling by countering classroom hunger. The education and nourishment they receive through the Mid-Day Meal Programme empower them to grow up to be skilled and resourceful citizens of the nation. This means by donating towards the mid-day meal cause, you are supporting zealous, young lives thereby contributing to nation-building. And, simultaneously, you are also benefitting from income tax exemption, making it a win-win situation for the cause and you!
Well then, go ahead and begin the ripple effect of charity by choosing to donate online to charity or offer an offline donation. Your charitable contribution will potentially create a healthy, educated, and responsible generation.