Wednesday, January 22, 2014

Tax Planning with Charity

While we are always searching for new ways of tax planning, many of us forget the section 80G.

80G gives us tax exemption for the amount that we donate to NGOs, charities, etc.. We must have the receipt of the donation and that receipt must have mention that the donation is valid for 80G deduction.

While many may argue that 80G is like 'hit-wicket' in cricket as to get benefit from tax, we are donating that amount itself. While this is true, charity is also one of the must to do for all the humans. We must try to give back to the society. While roles of NGOs is surely under scrutiny, we must ensure that we give it to the one we trust.

Rich dad - poor dad, Richest man in babylon all talk about charity. When we give, we receive... law of nature.

There are various places in Mumbai which are really helping society. I select any of them. Few examples would be a widow ashram in Matunga, school for special children in Dombivli.

Many banks allow money to be donated to NGOs from their internet banking. It feels good while donating. Try it.

Note: This year, I am giving it to an known aunt, who works for benefit of cancer striken children. If anybody wants to know more on her, do let me know.

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