Why Should You Incorporate Donations While Tax Planning
Donations are one of the ways to save tax. With the nearing of the tax season, we can see many people rushing to financial institutions and charitable organizations to get some relief on tax liability. This article focusses on knowing the relevance of making generous donations for efficient tax planning and tax saving.
What type of expenses is eligible for tax deduction under section 80D and 80C?
Tuition fees, health insurance, home loan interests, etc. are some of the expenditures that are eligible for tax deduction under section 80D and 80C.
No Kid Hungry is an organization that aims at feeding hungry children in school. Feed the hungry Houston initiative bring relief to children by assisting them in offering emergency services, food, water, and other supplies assistance to people who are impacted by storm.
How can you get tax exemption under section 80G?
Yes. A person is exempted to be eligible for deduction against section 80G. This can help you save tax via donating to a noble cause. By contributing to a social cause and making a difference in the life of less fortunate people will help you get exemption under section 80G. This section of Income Tax Act, help you avail tax credits, and allows you deduction on tax for the donations made to a charitable organization.
Are all donations eligible for tax exemption?
Not all donations can grant you rebate against tax. Finding the right place to make the donations gives you the advantage of tax exemption under section 80G.
Ways to make a donation that gets eligible for a tax deduction
Options to donate
There are several ways to bring betterment in the life of people to make generous contributions. Some of these areas are education, women, children, elderly, livelihoods, environment and differently-abled people.
The organization you should for charity be highly trusted, reputed and accredited by the government. Choose the firm that verifies and validates the legal needs that a non-profit organization has to follow.
It should have a rigorous and robust due-diligence procedure in place that covers legal, financial, compliance and impact verification for all donations made to it.
An authentic charitable firm regularly updates its customers about their donations and other donation programs. They provide timely reports to people to show the progress of the program and the way the life it improvises the life of the underprivileged people.
There are various ways in which you can save tax by contributing to charitable organizations. All these ways will help you safeguard your future in a noble way.