Tax Exemption
Tax Exemption
TAX EXEMPTION ON DONATIONS UNDER SECTION 80G
Manavsewa Trust is a registered non-profit organization under Section 12A(a) of the Income Tax Act, 1961. Our organization is also eligible for tax exemptions under Section 80G of the Income Tax Act, which allows donors to claim deductions on their donations made to us.
As per Section 80G, donors can claim a deduction of 50% of their donation amount as a tax deduction. The deduction is calculated on the gross amount of the donation, without considering any expenses or other deductions.
Manavsewa Trust issues tax receipts for all donations received, which can be used by donors to claim tax deductions. The receipt includes the name and address of the donor, the amount of the donation, and the registration number of our organization.
We encourage donors to keep these receipts for their records and to use them while filing their income tax returns. Donors can also contact us at manavsewatrustindia@gmail.com if they have any questions or require additional information.
We appreciate your support and trust in our organization. Your contributions will help us in our mission to improve the lives of underserved communities through education, healthcare, and community development initiatives. Thank you for considering Manavsewa Trust for your charitable giving.
What is Tax Exemption?
The reduction or removal of a liability to make a mandatory payment that is otherwise imposed by the ruling power on a property, individual, income, and so on, is known as tax exemption. Having a tax-exempt status may also provide relief from other taxes, offer reduced rates, or tax only on a portion of certain items. Exemption of tax for donations to charitable trusts and NGOs, from property and income taxes for veterans, cross-border scenarios, and so on, are some of the examples of tax exemption. An important thing that organisations need to keep in mind is that the registrations are granted under Section 12A of the Income Tax Act. However, that doesn’t give direct approval for deductions under Section 80G. This is because Section 80G tax benefits on donations apply only to charitable trusts, NGOs, and similar institutions. It doesn’t apply to religious trusts or institutions.
Section 80G of the Income Tax Act of 1961 is a little different, as it provides tax exemption to charity donors as well. Donations to an NGO under 80G offers deductions while calculating the total income of the donor. The recipient of the charity donation gives a receipt of donation to the donor based on which they get the entitled deduction, provided the NGO or charitable trust is approved under Section 80G. In addition to this, tax exemptions on charity are also applicable, provided the charity organisation is established in India and is operating for charitable purposes in the country.