Do you want to do something good with your money and get a tax break? Check out section 80g of income tax act. This section of the law allows you to claim tax benefits for donations you make to certain organizations. There are a lot of organizations listed in the 80g income tax, and it can be a little confusing to figure out which ones are eligible for tax benefits.
Once your NGO has registered under section 80g of income tax act, you are eligible for a number of benefits. First and foremost, you receive tax exemption on all donations that you receive from individuals and organizations. This is a huge incentive for donors, as they can donate without having to worry about paying additional taxes.
When you earn investment income, you owe two different types of taxes on it: income tax and capital gains tax. Income tax is the tax that you owe on your regular income. This is the tax that you pay on your salary, wages, tips and other taxable income. The amount of income tax you owe depends on your income level and filing status. Capital gains tax is the tax that you owe on the profits you earn from selling investments, such as stocks, bonds and real estate.
Tape is an income tax exemption that can help reduce the amount of tax you owe on your income. It is available to taxpayers who earn below a certain annual income.
An NGO can gain profits from salary charge exclusion by getting itself enlisted and conforming to certain different customs, yet such enlistment does not give any profit to the persons making donations. The Income Tax Act has certain procurements which offer tax reductions to the “givers”. All NGOs may gain profit from the playing point of these procurements to pull in potential benefactors. One such segment is section 80g.