- 17 March 2016
- Posted by: ahalwasiya
- Category: Income Tax
Charity should go beyond your home. Helping our near and dear ones is something we do without even thinking too much about it. But helping a stranger, doing something meaningful for someone you don’t know has its own goodness. While it is difficult for each one of us to personally help those in need, it is not at all difficult to donate to a charity or organisation that is involved in a social cause. You can do that easily and here are three reasons why you should donate: Sharing is caring Directly or indirectly, all of us are affected by the problems our country faces. Be it natural calamities that happen in some other state or increasing illiteracy in some other region, we are as much affected by them as the people who live there. We also have to care for these issues and the best way of showing that you care is by what you can share. Any donation, big or small, goes a long way in making the world a better place. Charity is a happiness booster Don’t donate for anyone else, but do it for your own self. Studies have shown that people who give to others are happier and more content with life than those who don’t. Indulging in charity is an underrated mood-booster; it makes you feel good instantly. After all, good begets good and nice things happen to people who are nice to others. Less income tax to pay Another reason to donate is that donations earn you income tax deductions. When you donate to a charitable or social cause, you can claim tax rebate on the money you donate. So, in a way, the money that you give away comes back to you in the form of income tax savings. This provision is under Section 80G of the Income Tax Act that entails that donations towards social causes can be deducted while individuals and companies compute their income tax liability. This is an added incentive to feel better by helping those in need.
Section 80G deduction
As per the Income Tax Act, donations made to social causes are deductible up to either 100% or 50% with or without restriction. However, donations of less than Rs 10,000 made in cash are not applicable for deduction.