Supporting social causes is noble, but did you know that donating to a registered NGO can also provide tax benefits? The Indian government encourages charitable contributions by offering tax exemptions under Sections 80G and 12A of the Income Tax Act. If you are considering donating to an NGO like KLKI Rising Foundation, here’s how you can benefit:

1. Tax Deductions Under Section 80G

Section 80G of the Income Tax Act allows donors to claim deductions on their taxable income. Here’s what you need to know:

•           Donations to NGOs with 80G certification qualify for a 50% deduction on taxable income.

•           Some institutions with specific government approval allow a 100% deduction (e.g., Prime Minister’s Relief Fund).

•           Both individuals and businesses can claim these deductions.

•           Donations must be made through valid payment modes like cheques, demand drafts, or online transfers (cash donations exceeding ₹2,000 do not qualify).

•           The tax benefit applies only if the donor provides their PAN number while donating.

2. NGO Credibility with 12A Registration

For an NGO to receive tax-free income and provide tax benefits to donors, it must be registered under Section 12A. Here’s why this matters:

•           NGOs registered under 12A are exempt from paying income tax, ensuring more funds are utilized for social work.

•           Donors can trust the NGO’s authenticity and legal standing.

•           A 12A certification makes the NGO eligible for funding from corporate CSR initiatives and international grants.

•           NGOs with 12A registration can apply for government grants and schemes that further their mission.

3. Encourages Corporate Social Responsibility (CSR)

Many corporations seek NGOs with 80G and 12A certifications for their CSR initiatives. By donating to such NGOs:

•           Companies fulfill their CSR obligations while getting tax benefits.

•           NGOs receive crucial funding for their social programs.

•           A mutually beneficial partnership helps drive sustainable social impact.

•           Businesses can improve their brand image by engaging in philanthropy and social good.

4. Promoting Social Good While Saving Taxes

Your contribution improves lives in areas such as education, healthcare, women’s empowerment, and environmental conservation. At the same time:

•           You reduce your tax burden.

•           You contribute to meaningful social development.

•           You become part of a movement for positive change.

•           You inspire others to support charitable causes and create a ripple effect.

How to Claim 80G Benefits?

1.         Donate to a Registered NGO – Ensure the NGO has valid 80G and 12A certifications.

2.         Obtain the Donation Receipt – The receipt should include the NGO’s name, PAN, and 80G registration number.

3.         File Your Tax Return – Mention your donation details in the tax filing process.

4.         Keep Records – Maintain copies of receipts and bank transactions for future reference.

Why Choose KLKI Rising Foundation?

KLKI Rising Foundation is a registered NGO dedicated to social welfare, education, and environmental sustainability. With our 80G & 12A certifications, your donations make an impact and provide you with tax benefits.

Take a step towards change today! Donate to KLKI Rising Foundation and enjoy tax savings while making a difference!

Visit our website or get in touch with us for additional information.

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Frequently Asked Questions (FAQs)

1. What is the difference between 80G and 12A registration?

•           80G provides tax benefits to donors, while 12A allows NGOs to be exempt from income tax.

2. Can I claim 80G benefits if I donate in cash?

•           Yes, but only if the donation amount is ₹2,000 or less. Any amount above that must be donated via cheque, demand draft, or online payment.

3. How do I check if an NGO is registered under 80G and 12A?

•           You can ask the NGO for their 80G and 12A certificates or check the Income Tax Department’s website.

4. Are international donors eligible for tax benefits under 80G?

•           No, 80G benefits are only applicable to Indian taxpayers.

5. How long does it take to receive an 80G donation receipt?

•           Most NGOs provide receipts immediately or within a few days after receiving the donation.

6. Can businesses claim 80G deductions?

•           Yes, companies can claim 80G deductions under their taxable income.

If you have more questions, feel free to contact KLKI Rising Foundation for assistance!