Last-Minute Charitable Contributions: Give Back and Save on Taxes

Want to explore last-minute charitable contributions for both altruism and tax benefits? In this video, we're diving into how to explore these contributions as the financial year-end approaches.

We’ll look at how charitable donations could be a strategic way to save on taxes. Here, you’ll learn about eligible contributions that qualify for deductions under Section 80G of the Income Tax Act in India. These include donations to impactful organisations like CRY. It supports underprivileged children's rights and offers a 50% tax exemption on donations. Another option is the Akshaya Patra Foundation. It is dedicated to fighting hunger and promoting education through mid-day meals. Here also, your donations are eligible for a 50% tax deduction. You’ll also find out about the Prime Minister's National Relief Fund (PMNRF). This aids families affected by natural disasters and qualifies for tax benefits.

The video will also walk you through key tips and suggestions you need to keep in mind when claiming these benefits. For example, it’s essential to secure receipts and certificates for your donations.

Depending on the organisation, tax deductions can reach 50% or even 100% of the donation amount. So, make the most of this financial year-end— keep supporting worthy causes and be financially smart with your taxes.

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Key Takeaways

Last-minute charitable contributions can be a win-win, helping those in need while reducing your tax liabilities

Charitable donations in India, under Section 80G, provide tax benefits for contributions to registered NGOs, relief funds, and charitable institutions

Consider supporting CRY for underprivileged children - donations are eligible for a 50% tax exemption

You can contribute to the Akshaya Patra Foundation to fight hunger and promote education, enjoying a 50% tax deduction

Explore contributions to the Prime Minister's National Relief Fund (PMNRF) for natural disaster assistance, with tax benefits available

Maximise tax benefits by collecting receipts for all charitable contributions; deductions can range from 50% to 100% depending on the organisation

Frequently Asked Questions
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Making last-minute charitable contributions can be a smart move as the financial year-end approaches. Not only does it allow you to give back to the community, but it also helps reduce your tax liabilities. This dual benefit makes it an excellent opportunity to optimize your taxes while supporting causes you care about. Consider making these donations part of your regular tax planning rather than waiting until year-end for better financial management.
To ensure an organization qualifies for tax benefits, check if it is registered under Section 80G in India. You can ask about this 80G certificate directly from the organisation. Eligible entities include registered NGOs, relief funds, and charitable institutions. Keep proof of the organization's registration. Always verify the organization’s eligibility before donating to make sure your contribution is tax-deductible.
You should collect receipts and certificates for all your donations. The receipt should mention your name, PAN, donation amount, and date. Some organizations also provide separate 80G certificates which you should retain. These documents are crucial when filing your income tax returns, as they can significantly influence your deductions. They could help you claim up to 50% or even 100% of your contributions, depending on the organisation.
The amount of tax deduction you can expect varies based on the organization you donate to. Deductions typically range from 50% to 100% of the donated amount. It’s essential to understand the specific criteria for each charity to maximize your benefits effectively. The deduction percentage depends on the organization's registration category under Section 80G. So, remember to check this before donating.
Yes, you can contribute to multiple eligible charities and still enjoy tax benefits. Each donation's deduction will be calculated based on its specific category under Section 80G. Maintain separate receipts for each contribution to ensure proper documentation during tax filing. This way, you can claim the respective tax deductions on your income tax returns without any issues.
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