Showing posts with label 80g deduction. Show all posts
Showing posts with label 80g deduction. Show all posts

Thursday, April 18, 2024

The power of a child’s voice

 An Austrian psychoanalyst, writer and philosopher Otto Rank said, “What we change inwardly will change the outer reality.”

Indeed! Today, India is a frontrunner in raising a progressive socioeconomic reality and an inclusive world. Its upcoming generation—an amalgam of various backgrounds—has begun working on a future where individuals are not only self-sufficient but also transcend their capacities to achieve bigger milestones for their families, country and humanity at large. 

A significant credit for it goes to the child welfare schemes by the Government of India, with a greater focus on children from lesser privileged families. Programmes like the PM POSHAN Abhiyaan are making quality nutrition available to children from challenging backgrounds to help them reach their highest potential. 

Here are the dreams of some PM POSHAN beneficiaries who study in government schools and receive mid-day meals (MDM) from The Akshaya Patra Foundation.

Bindiya Choudhary, 8th standard, Government Girls Higher Secondary School, Bikaner

Bindiya works hard every day to fulfil her dream of becoming an international basketball player. She says, “I’ll become a legendary basketball player and represent our country internationally. Recently, we had an interschool basketball tournament. It was a tough competition, but we won. I scored the last two points by shooting a lap shot,” 

But there’s often a strictly disciplined lifestyle behind such an achievement. “After school, I reach home, rest for a while and leave for the basketball court around mid-afternoon. The court is around 10 km away from my home. I cycle till there and practice for 3-4 hours,” Bindiya explains.

Suryadeep, 8th standard, C.P.S Kharadpada, Silvassa

For Suryadeep, discipline and self-dependence are non-negotiable traits in life. He aspires to join the Indian army and protect the nation. At the tender age of 13 years, he is learning and practising every skill that will help him survive in army camps. 

Suryadeep stays away from his family in a hostel near his school. His father is a labourer at the Hindustan pencil manufacturing factory. Both his mothers are housewives and all his siblings work daily wage jobs. 

In his room, he pulls a medal from his cupboard and says, “I’m the captain of my school’s kho kho team. We had an inter-school kho-kho competition recently. Our team bagged the gold medal in it. Now we’re preparing to participate in the district-level kho-kho competition.” 

An organised daily routine at the hostel and rigorous training in sports have made Suryadeep independent, disciplined and adept in survival skills. He plans to utilise these experiences to join the army. He says, “I plan to get enrolled in the army under sports quota and train harder to become a commando.” 

Ayush Vishwakarma, 3rd standard, Primary school, Bhitkuri, Sevapuri, Varanasi

Ayush Vishwakarma likes coming to school because he learns good habits here. He aims to become an IAS officer when he grows up and serve those who live around him. He wants to help the children of the marginalised get a good education so that they become successful when they grow up. “I got inspired watching a woman on the TV who became an IAS officer and helped the poor,” he recollects. 

“I talk about my dreams with my brother. He says I should become a doctor instead. But I've already started preparing for my dream to become an IAS officer by running and doing Yoga every day,” he concludes.

Anshika Sharma, 8th standard, Smart Model School Paharpur, Lucknow

Anshika Sharma was made the head girl of her class because of her academic performance and people management skills. “When children become restless, they go to teachers and complain frequently. Although teachers take care of serious matters, they made me a head girl to address issues within the classroom. They chose me because I was one of the top scorers and handled tasks skillfully,” she says. 

The 13-year-old likes coming to school because she gets to play, study, eat and practice her hobbies. “I have multiple hobbies. I participate in sports events and always bag the first or the second prize. But when I take part in drawing or mehendi competitions, I always come first! I receive a lot of support at home for all these activities. They tell me to work hard and be focused on whatever I do!” the 8th-standard student says in a cheerful tone.

When asked about her ambition, she replies, “I aim to join the police force when I grow up and maintain law and order in the country. I want to punish wrongdoers, protect good people and ensure that justice prevails. I’m not preparing for it right now but will start soon. The mid-day meals (MDM) I get here give me the energy to study and persevere. We get dal rice, kheer tehri, kadhi rice and roti subzi. But my favourite is kheer tehri!”

Feed the children and nurture their aspirations with MDM

Children need to be healthy, both physically and mentally, to achieve their dreams. Schemes that educate and feed the children like the PM POSHAN Abhiyaan will help those from challenging backgrounds live to their fullest, align their efforts with their goals and achieve the future they desire. By sparing a few seconds to contribute for their nutritious mid-day meals, we all can do our bit for a prosperous, equitable and resilient future. Furthermore, the Government of India has made provisions for taxpayers under the Income Tax Act of 1961 wherein they can make tax-exempt donations to registered NGOs.

At Akshaya Patra, one can make a tax-exempt donation for mid-day meals (MDM) within a few clicks online, keeping them nourished and in school throughout the year. 

Wednesday, December 13, 2023

Maximising Goodness with Charitable Donations

Charitable donations are a powerful way for individuals to make a positive impact on society while enjoying potential tax benefits. When you contribute to a cause you believe in, not only are you supporting a noble endeavour, but you may also get income taxdeduction under section 80G of the Income Tax (IT) Act. Understanding the ins and outs of tax exemption donations can empower you to make a difference while optimising your financial position.

Ways to Reduce Income Tax

Choose the Best NGO in India

The first step in maximising tax benefits for your donations is to ensure you contribute to a qualified charitable organisation. These organisations are typically registered as nonprofits and can provide you with the necessary documentation for tax purposes. Check the official list of approved NGOs in India to make sure your chosen cause is eligible.

Itemise Your Deductions

To avail of tax benefits, you need to itemise your deductions when filing your income tax return. Instead of taking the standard deduction, which is a fixed amount set by the Indian Revenue Service (IRS), listing your eligible expenses individually can potentially lead to a larger deduction. Keep detailed records of your charitable contributions, including receipts and acknowledgement letters from the organisations you support.

Understand the Limitations

While charitable contributions can help you get tax exemption, there are limitations to the 80G deductions. Generally, the IRS allows you to deduct up to 60% of your adjusted gross income (AGI) for cash donations to public charities. For non-cash donations or contributions to private foundations, different rules may apply. Be sure to consult the latest tax guidelines or seek advice from a tax professional.

Tips on Maximising Donations

Give Wisely and Strategically

Consider making larger donations in specific years to maximise your tax benefits. If you anticipate a higher income in a particular year, increasing your charitable contributions can help offset your tax liability. Planning your donations strategically can make a significant difference in optimising your overall financial picture.

Go online for donations

Don't limit your contributions to cash alone. Non-cash donations, such as online donations, can also qualify for tax deductions. Keep records of the online certificates and tax exemption certificates. 

Take Advantage of Employer Matching Programmes

Many employers offer matching gift programmes, where they match their employees' charitable contributions. Check if your employer participates in such programmes. This not only increases the impact of your donation but benefits of tax exemption too.

Bringing It All Together - Akshaya Patra

As you embark on your journey of philanthropy, it's worth considering organisations like Akshaya Patra, which focuses on eradicating hunger and promoting education. Akshaya Patra is known for its impactful initiatives, particularly for providing mid-day meals to school children across India.

Donors supporting Akshaya Patra can experience the joy of contributing to a cause that makes a substantial difference in the lives of children. From a tax perspective, donors also stand to benefit under section 80G. Akshaya Patra is a registered nonprofit organisation, ensuring that your contributions are eligible for tax deductions.

By contributing to AkshayaPatra, you align yourself with a cause that not only resonates with your values but also allows you to optimise your financial position through tax benefits. 

In the realm of charitable donations, the synergy between doing good and receiving tax benefits is a win-win situation. As a common man navigating the complexities of income tax, understanding the nuances of charitable contributions can be empowering. By strategically choosing the right causes, maximising contributions and exploring all available avenues, you not only make a positive impact on society but also optimise your financial well-being.

Choosing to support organisations like Akshaya Patra adds an extra layer of fulfilment to your philanthropic journey. By contributing to a cause that addresses crucial issues like hunger and education, you not only benefit from potential tax deductions but also become an integral part of transformative change in the lives of those less fortunate. So, as you embark on your journey of giving, remember that your contributions have the power to make the world a better place for everyone.