- Donations to Private Trusts : Trusts and institutions which formed, with the primary aim of promoting scientific research, education, sports, certain professions, khadi and village industries, etc. Or hospitals and notified charitable or religious institutions entitled to total tax exemption under Section 10 of Income Tax Act.
- Donations to Trusts or Funds set-up by the Government : The entire amount donated is eligible to deducted from the taxable amount.
- Donations to Approved Research Organisations : Businessmen and Professionals, who earn income under specific heads of, Profits and Gains of Business or Professions have certain sections reserved for them. Sections 35A and 35CCA, allow a 100 per cent deduction of the amount donated, for the purposes of scientific research and rural development to approved research organisations. However, The government’s approval also needed for the same. Those who do not have, certain professions or businesses in the form of salaried income, on donating to such organisations can receive a 100 per cent deduction under Section 80G.
NGO Donation Tax Exemptions:-
There are various Non-Governmental Organisations and non-profit entities that work on various purposes. Which help to promote economic development and achieve the various social welfare goals of the government.
Thereby having various tax exemptions and incentives.
Section 80G is the most prominent of them all in India and 501(c)(3).
In addition, Here is a case study of an NGO called Genesis Foundation, which supports underprivileged children with heart defects in India. One can make donations for children to their NGO.
As per the norms and guidelines of this NGO:
For Indian Residents
The organization registered under Sections 12-A and 80G.
Section 12-A, enables non-profit organizations:
To claim complete tax exemptions according to, Sections 11 and 12 of the Income Tax Act, 1961.
Moreover, Section 80G at the same time, entitles the donors who reside in India to a 50% tax exemption.
For instance, These donors will receive a soft copy receipt for their donation amount.
Most importantly, An Indian citizen, irrespective of whether settling in India or abroad.
Who has a valid passport and wants to avail of the 80G tax exemption. Can contribute in Indian Rupees (INR), using multiple Indian payment methods, inclusive of international credit cards.
For Foreign Nationals