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?

Challenges in Implementing the Mid-Day Meal Programme

To retain a hungry child in the classroom is a major problem faced by the teachers and parents in government schools. A hungry student cannot learn or understand what is being taught in the class. Hunger causes impaired mental growth, physical growth and even reduces the attention and concentration of children.

Poverty and malnutrition among students, hailing from low income families have become a major concern in India.  As a result, the Mid-Day Meal Programme was launched to universalise primary education, increase enrolment rates, reduce dropout rates as well as improve the nutritional status of students in primary classes.

Akshaya Patra implements the mid-day meal programme in partnership with the Union Government and State Governments. The organisation reaches out to 1.5 million children a day and is the largest school lunch programme in the world.

Let us see some of the challenges Akshaya Patra has to face in implementing the mid-day meal scheme.

• Providing the right quantity of food to each and every student with the right amount of nutrients, vitamins and minerals so that beneficiaries are not devoid of any essential nutrient.
• Reaching out to places where road connectivity is not smooth especially in rural areas. 
• Employing enough man power, so that meals can be prepared in vast quantities.   
• Having variety in the menu. Children would savour the meals only if different varieties of curry are served each day with rice and roti.

In spite of all the challenges, Akshaya Patra reaches out to its 1.5 million children with all efficiency and competency. Not even a single day the organisation has missed to deliver a meal as the organisation understands that this could be the only meal for many of its beneficiaries.

Hunger is really a challenge but to retain a hungry child in the classroom is more challenging. Hunger is an obstacle that hinders the child’s learning process.

Child hunger is a social issue that together we can solve. So let us donate to Akshaya Patra. It takes just Rs. 750 to feed a child for a year! Every donation of Rs. 500 or above made to Akshaya Patra is eligible for 100% tax exemption under section 35 AC or 50% tax exemption under Section 80 G of the Indian Income Tax. 

Let us donate to Akshaya Patra and help serve children to end class room hunger.