The Social benefits of Tax Exemption in India

There is a compassionate part hidden among all of us. And, the thought of getting out there and doing something for the society also must have crossed our minds many times. But, how often have we actually gone ahead and done it? We get so caught up in our daily humdrum that our benevolence takes a backseat. But, as they say, ‘where there is a will, there is a way.’ So, one of the many ways that can provide you a platform to actively participate in social causes is to engage with an NGO. Every NGO works towards benefitting, uplifting, and sustaining the society by encompassing factors related to social, legal, environment, ecology, health, economy, education, welfare, and the like. The cause of each NGO directly or indirectly reflects the broader perspectives of global organisations such as the UN, UNESCO, WHO, ILO etc. Since NGOs work at the ground zero level of the society; their involvement with a cause brings about a more sustainable outcome. Hence, when you get involved with an NGO it provides you an avenue to constructively participate in a cause.

In view of the significant role of NGOs and to encourage participation of individuals and businesses in various causes, the Government of India has made the provision of tax exemption in India for all charitable donations. Yes, as per Section 80G of the Income Tax Act, contributing donations to a registered NGO or a charitable trust can avail the donor 100% or 50% exemption on the donated amount based upon the type of charitable trust and the clauses of the Income Tax Act. The exemption is applicable for both online donation and offline donation. However, due to ease and convenience, many donors have started taking the online mode of contributing charity. And, since NGOs understand the worth of each penny, the donor can be rest assured that their money is being utilised in the right way. Hence, considering this form of tax exemption is quite a noble way to contribute towards the society.

Let’s take a couple of instances, if a donor identifies with an environmental cause such as afforestation and contributes towards Save Green, then his taxable income will be utilised towards increasing green cover and initiating several environment-friendly programmes. Similarly, if a donor identifies with child education and nutrition, then donating towards The Akshaya Patra Foundation, an NGO in India will ensure nutritious school meals to government school children on every school day. And, since the NGO is aiming at feeding 5 million children by 2020, every penny of all donations will be directed towards the operational expansion of the NGOs Mid-Day Meal Programme. This means, as a donor, you are providing wholesome meals to children and helping them learn and participate better in school, and you are also contributing towards their healthy growth. So, essentially you are contributing towards a healthier and educated society. And, you are also being a catalyst in nation-building.

Well, as you can decipher from the above-mentioned instances, your taxable income has the potential to transform the society in many different ways. Hence, don’t you think making an online donations or offline donations to NGOs can make the most of the tax exemption in India to upkeep your benevolence, save your hard-earned money while also partaking to uplift the society?

How can an NGO bring positive change in society?

‘Giving back to society’ is not an unheard phrase; in fact, it is quite clichéd. Right from top legislators to the common man, everybody has spoken about and heard of this phrase time and again. So, what does it actually mean? To put it simply, ‘giving back to society’ means helping the needy. We all live in a society and the society provides for us. We are dependent on our community and environment for all our need. So, in turn, it becomes our responsibility to take care of our fellow human beings and our life-sustaining environment. It is no surprise that inequality and difference exists all around us: some are extravagantly wealthy whereas some are struck by poverty, some have the luxury to a lavish spread of fine gourmet whereas some sleep and wake up to extreme hunger, some breathe in fresh air whereas some are struggling under the blanket of soot, some are travelling far and wide to get education in the finest of institutions whereas some do not even have the opportunity to attend primary schooling. These are just a few dots on the huge map of the haves and have-nots. And, the phrase ‘giving back to society’ addresses this very imbalance so that the ‘haves’ step up to provide for the ‘have-nots’ through charity donation, time, skill, and specific resources.

One of the practical ways to channel charitable activities constructively is to get engaged with an NGO. NGOs are legally formed groups independent of government ownership or representation. Their scale of ranges from local to global level and encompasses concerns related to human development, conservation of the environment, animal welfare, and more. The operational structure of NGOs allows them to get involved more closely with a particular issue resulting in a more focussed way of dealing with an issue. And, this is also the reason why NGOs are more effective in bringing about a lasting change in the society. So when you donate charity or invest your time and resources in such organisations, it gives a whole new meaning to your contribution. Heeding to this impact and to increase the involvement of more people with different causes, the Government of India allows tax exemption in India for all donations made towards registered NGOs and charitable trusts under Section 80G of the Income Tax Act. This means your donation will have a double advantage: first, it will help the NGO to make progress in their respective causes; and second, it will make you eligible to claim 100% or 50% exemption on the donated amount based on the defined criterions of the Income Tax Act.

One such organisation that has also been recognised as the top NGO by The Global Journal is The Akshaya Patra Foundation. In 2013, the Foundation was ranked 23rd among the top 100 NGOs featured in the 2013 edition of The Global Journal. Akshaya Patra is an Indian NGO running the world’s largest NGO-run school lunch programme. Headquartered in Bengaluru, Karnataka, the Foundation provides freshly cooked nutritious meals to more than 1.6 million children across 34 locations in 12 states. Over the 17 years of its service, Akshaya Patra has observed significant changes in the schooling pattern of children from the economically disadvantaged background. There has been a rise in enrolment, improved attendance rate, improved health, better concentration, and more active participation of children in school activities. However, this would not have been possible without the support of government and philanthropic donors. With the aim to expand its reach and feed more children, the NGO directs all the received funds towards bettering processes and operations and providing wholesome meals to children.

The one meal that children receive on every school day allows them to hope for a better future. It allows them to continue schooling which makes them more confident to achieve their aims. This makes your charity donation a meaningful intervention in the healthy growth and development of young children, making them resourceful citizens of the country. And, the same donation exempts you from taxes too! Well then, wouldn’t it be a good choice to save tax by ‘giving back to society’?

An NGO in India is striding towards nation-building

Every day, Akshaya Patra provides school lunch to more than 1.6 million children across 34 locations in 12 states of India.

Witnessing the interest of Aditya’s interest in computer and solar energy, Akshaya Patra partnered with ITI to provide a computer lab to the school so that children can receive practical knowledge along with theory lessons.

Heeding to Manjula’s interest in theatre and acting, Akshaya Patra enrolled her for a month long mentorship programme at the Bangalore School of Speech and Drama, following which she shone bright at a stage performance.

Akshaya Patra has partaken in several disaster relief activities by providing food to affected people in crisis situations like the devastating Nepal Earthquake and Chennai floods in 2015, the Gorakhpur flood in 2017, and the like.

The Akshaya Patra Foundation is an NGO in India that was initiated with the vision, ‘No child in India shall be deprived of education because of hunger.’ Since its genesis in 2000, this NGO has been striving to address the critical issue of classroom hunger and accessibility to school education through its Mid-Day Meal Programme. Initially, the Foundation served school lunch to just 1,500 children in five government schools in Bengaluru. Taking note of the crucial requirement of school meals, Akshaya Patra gradually began expanding its operations to other parts of the country as well. The Public-Private Partnership, good management, innovative technology, and transparent accounting policies have made the Akshaya Patra’s Mid-Day Meal Programme the world’s largest NGO-run school lunch programme. Today, Akshaya Patra operates 34 kitchens (32 centralised; 2 decentralised) across 12 states, feeding over 1.6 million children, every day.

The role of NGOs in the mid-day meal sector is to provide freshly cooked, nutritious meals to school children with the objective to:

• avoid classroom hunger
• increase school enrolment
• increase school attendance
• improve socialisation among castes
• address malnutrition, and
• empower women through employment

And, several studies done to assess the impact of Akshaya Patra’s meals suggest that the Foundation has been making steady progress in achieving the above-mentioned objectives.

Over the 17 years of service, Akshaya Patra realised that for an overall development of children and inclusive progress of the society, it has to fill certain gaps within its operational realm such as availability of nutritious meals in Anganwadi, providing a platform for children to hone their talents that will help in achieving their goals, and also being available for fellow citizens at the time of need such as natural disasters. So, while performing its core activity of providing mid-day meal, Akshaya Patra also impacts the society with its other feeding initiatives.

Witnessing the potential among its beneficiaries, this NGO in India endeavoured to go beyond just providing school meals with its 'Give Every Dream A Chance’ initiative. As a start, Akshaya Patra identified three beneficiaries Shivu, Manjula, and Shekar with the aim to become an astronaut, an actress, and a chef, respectively, and provided them with a month’s mentorship under experts in the mentioned fields. The impact of this initiative was:

Such initiatives are indeed of prime importance for the overall development of children, and Akshaya Patra is taking steps to implement it within its realm of service.

The dedicated service of the Foundation has been recognised in various forums and here is a mention of just a few of the laurels:

• Akshaya Patra has been ranked 23rd among the top 100 NGOs featured in the 2013 edition of The Global Journal.
• This top NGO has also been featured as one of the eight Indian game changers in the inaugural edition of Innowin (India’s first magazine dedicated to innovation).
• Akshaya Patra became the first NGO to comply with the IFRS and also the winner of the Gold Shield for Excellence in Financial Reporting by the ICAI for five consecutive years, inducting the NGO in the ICAI Hall of Fame.
• In 2006, Akshaya Patra was considered as a case study at the prestigious Harvard Business School as part of its MBA curriculum.

In an effort to multiply the impact of the Mid-Day Meal Programme, this NGO in India continuously enhances its technologies and processes by implementing Kaizen, Continuous Improvement Projects and Six Sigma methodologies in its kitchen operations. Alongside regular technological interventions, the Foundation has also adopted green initiatives such as biogas plant, briquette boiler, and solar power in some of its kitchens with the aim to reduce carbon footprint and operational costs. Also, in an endeavour to improve the nutritional intake of the beneficiaries, recently it launched a pilot in partnership with the Government of Karnataka to include millets in the school lunch programme.

Undoubtedly, the role of NGOs is significant and important for the overall development and progress of the society. And, organisations such as Akshaya Patra bring about a change in a sustainable manner, right from the grass root level, so that each child grows up to be an asset for the country. Join in the efforts of NGOs and be a part of nation-building.

Different ways of getting tax exemption

No matter how much we earn, we all look for ways to save tax. And, as the income tax filing date nears, we try to dig into papers that can save our hard-earned money. Well, instead of stressing up yourself at the last minute, invest your money wisely in schemes that can avail you tax exemptions with ease.

Here is a list that can help you to save tax on your salary:

• House Rent – The Government of India allows exemption of tax for house rents under Section 80GG. House rent is an unavoidable expense that has to be borne by an employee, especially outstation employee, who relocates to different cities to fulfil the demands of their jobs. The eligibility of exemption depends upon certain criterions and the employee has to furnish rent receipts during income tax filing.

• Children Education Allowance – This allowance qualifies a salaried person to avail tax benefits for expenditure pertaining to school fees, hostel fees and similar education-related expenses of their children. This benefit can be availed for up to two children only.

• Housing Loan – A home loan comes with a specific interest rate. Hence, if a salaried person has taken a home loan then he can furnish the required papers to get a tax exemption on the interest amount.

• Donations: Contributing donations to a registered NGO or a charitable trust can exempt you from paying taxes on the donated amount under Section 80G. The donor can either claim for 100% or 50% exemption on the donated amount based upon the receiver and the criterions set by the Income Tax Act.

• Medical Insurance – Under Section 80D, one can claim for exemption on the medical insurance policy. It is applicable to the policyholder and the dependent members too. It is a good opportunity to save tax while remaining secured for any kind of health emergency.

As it is evident that making an investment is a good way to save tax, and, even better if this can bring about a positive change in the society. Offering charity to a not-for-profit can create a win-win situation for the donor and the society. One such NGO is The Akshaya Patra Foundation that provides school lunch to more than 1.6 million government school children on every school day. The Foundation operates its kitchens in 34 locations in 12 states of India. It strives to provide unlimited food for education so that ‘No child in India is deprived of education because of hunger.’ While sustaining its service for the current beneficiaries, the Foundation aims to expand its reach to more locations so that more children can be nourished from its Mid-Day Meal Programme. Akshaya Patra is a recognised charitable trust eligible to offer tax exemptions to its donors as per Section 80G of the Income Tax Act. The Foundation directs all the funds towards providing wholesome meals to children so that they grow up to be healthy, educated, and responsible assets for the country. Thus, by choosing to contribute online donations for NGO, you are not only saving tax on your income but also securing the lives of young children.

So, take a stand and support the cause that will provide for the less-privileged, foster hope, and constructively enrich our society.

Disclaimer: Each of the above-mentioned tax exemption plans has its own terms and conditions. Hence, it is advised to understand the respective tax exemption clauses prior to making an investment or a claim.

How right food matters for studies during exam?

It would not be wrong to say that exam fear has been in trend since time immemorial, and surprisingly it has remained unchanged! Doesn’t matter how brilliant a student is, exam time injects the fear in one and all. Even after attending motivational speeches, listening to loads of advice, and sitting through presentations on how to tackle exam tension, each and every child undergoes some degree of mental stress resulting in nervousness, blackout, panic, palpitation, and mood swings. Often times these changes also lead to eating disorder during exams. Some children may reduce their food intake, whereas others may consume twice or thrice their regular diet. Though unintentionally, but dietary change further disturbs the bodily equilibrium. So, it becomes imperative to maintain a good diet during exams, no matter how tensed the child is. Just like how the charity for children, The Akshaya Patra Foundation maintains the nutrition level in all their meals, no matter what is the menu and which location it is being served at.

Being cognizant of the core role of NGOs in the mid-day meal sector, Akshaya Patra ensures that through its school lunch programme it meets the main objectives of the Mid-Day Meal Scheme, i.e.:

• avoid classroom hunger
• increase school enrolment
• increase school attendance
• improve socialisation among castes
• address malnutrition
• empower women through employment

This charity for children understands the importance of right nutritional balance for the proper growth and development of children. Over the 17 years of serving mid-day meals, the NGO has also witnessed the positive impact of a well-balanced diet on the level of concentration, health, and activeness among children. Hence, a meticulous and detailed menu is designed by including variety of items in the meal menu while adhering to the nutritional and dietary norms stated by the Central Mid-Day Meal Scheme. In addition, each kitchen of Akshaya Patra complies with standard operational processes and maintains utmost cleanliness and hygiene while preparing and delivering cooked meals.

Not just with regards to mid-day meal, but meals at home must be well-balanced too. Here are some quick tips about healthy eating during exams:
• Smart snack at regular intervals – Instead of forcing down food during three big meals, it is wise to take breaks for small meals at regular intervals. Children must snack smartly by including items such as fruits, toast spread with peanut butter, vegetable sandwich, fresh juice, etc.
• Choose real instead of supplementary – Dietary supplements may sound convenient and good, but real food is always better. Hence, peeling an orange for Vitamin C is more beneficial than opening a pill case. Eating fresh fruits and salad vegetables will provide children with all the required nutrients like iron, B Vitamins, Vitamin C, protein, calcium, beta-carotene, antioxidants, fibre, and much more.
• Drink water – It is very important to keep the body hydrated else it may lead to fatigue and lack of ability to focus. Hence, drinking lots of water and fluid intake such as fresh juices, and milk becomes a must.

As a process of self-evaluation, Akshaya Patra at regular intervals conducts impact studies in partnership with third-party evaluators. These impact studies also bring to fore the important role of NGOs and the impact they are creating in general along with Akshaya Patra’s contribution in particular. In one such study conducted by Sigma Research and Consulting Pvt. Ltd. titled as ‘Assessment of mid-day meal programme in 8 states 2014’ states that the mid-day meals provided by Akshaya Patra fulfilled the recommended nutritional requirements while also being healthy and hygienic.

Well, as the exam begins in private schools so it begins in government schools too. And, interestingly the intention of students in both private and government schools is the same – to score good marks and come out in flying colours. Hence, support the cause of Akshaya Patra because by contributing towards mid-day meal you will indirectly donate for education in India too. So, contribute today and help children to receive adequate nutrition for this exam season and beyond.

How can we eliminate gender disparity in schools - International Women’s Day

The International Women’s Day is observed globally on 8 March every year. Though this day is approached and celebrated in different ways around the world heeding to the culture and history of the land, the focus is always to value women’s role in the society and their achievements. This day is celebrated based on various themes, with the theme for 2018 being ‘Press for Progress’. This theme rightly comes at a time when the findings of World Economic Forum's 2017 Global Gender Gap Report suggest that we might be more or less two centuries away from attaining gender parity. But, growing awareness, activism, support, and not to forget the crucial role of NGOs, has created a global movement for women empowerment and gender parity.

In India, gender disparity begins right from the birth of a girl child, and in certain cases in the prenatal stage itself. A forthcoming background paper on female literacy that was released in a blog-post by New York-based International Commission on Financing Global Education Opportunity (or Education Commission) indicates that India is under-performing compared to its neighbours, Pakistan, Bangladesh and Nepal. According to the report, India has a proportion of 48% women who completed primary schooling of five years and were literate, compared to 92% in Nepal, 74% in Pakistan and 54% in Bangladesh. The report points that India stands at a pretty low ranking in global indices too. If the 51 developing countries that were being compared, are ranked by the earliest grade at which at least 50% of women are literate then India ranks 38th among the 51 countries, whereas its neighbouring counterparts - Nepal ranks 3rd, Pakistan ranks 8th, and Bangladesh ranks 24th. This indicates the need for a result-oriented implementation of several programmes introduced by government and NGOs for children to create awareness for protecting girl child and providing them the equal right to education.

The main reason for gender disparity stems from the belief that girl child is a burden for the family, and her education is not of as much priority since she will be married of whereas the son will grow up to be the earning member for the family. It is estimated that about 3-million girls are out of school in India. And, in rural India only 1 in 100 girls reach Grade 12. While the number of girls attending primary school is roughly equal to boys, the gap widens in secondary school as they are forced to drop-out in view of stereotypical roles of helping at home or getting married. To deal with this situation we need to work as a community and support girl children through sponsor a child platform of various NGOs.

In order to uplift women and reduce gender parity, the Government of India has taken several measures such as Beti Bachao, Beti Padhao Yojana, Sukanya Samriddhi Yojana, Mid-Day Meal Scheme, Sarva Shiksha Abhiyaan, and the like. In addition, Punjab has recently announced a programme to encourage girls from all backgrounds to get quality education with the provision of free education in the state system right from nursery school to doctorate level at university. Many national and international leaders have time and again pressed upon the issue of education and empowerment of women and there are many NGOs for children that are directly working for safeguarding girl child rights.

Educating girls hugely benefits the family in particular and the entire country in general. It is time we take some tangible steps towards the notion, "If you educate a woman, you educate a family. If you educate a girl, you educate the future" because the large proportion of illiterate females is one of the main reasons for the low literacy rate in India. And, there is no denying of the fact that only an educated mother can educate her children. Hence, it is time to break down barriers that prevent girls from going to school by getting involved to support the role of NGOs and government initiatives. And, what better way to counter gender disparity than sponsoring education for a girl child on this International Women’s Day. So, go ahead and sponsor a child, a girl child who is the backbone of prosperity and development.