Tax Benefit Explanation for Donors:
Tax benefits associated with charitable contributions can motivate employees to donate to the Manovikas Charitable Society (MCS). Here’s how you can explain these tax benefits to them:
Income Tax Exemption Under Section 80G:
Manovikas Charitable Society is registered under Section 80G of the Income Tax Act. This means that donations made to our organisation are eligible for income tax deductions. Here’s how it works:
- When you donate MCS, you can claim a deduction on the donated amount while calculating your taxable income.
- The deduction can be up to 50% of the donated amount for donations made to Manovikas Charitable Society.
- If you donate Rs. 100, you can reduce your taxable income by Rs. 50.
- This deduction encourages and rewards you for your philanthropic efforts, effectively reducing your tax liability.
By contributing to Manovikas Charitable Society, you are positively impacting our charitable programs and are also eligible for tax benefits that can reduce your overall tax burden. It’s a win-win situation – supporting a worthy cause and maximising your tax savings.
Tax Slab Benefits:
The actual tax benefit you receive depends on your income tax slab. The higher your income, the greater the impact of the deduction on your tax liability. By donating, you can reduce your taxable income, potentially moving to a lower tax slab and, thus, lowering your tax rate.
Investing in a Noble Cause:
Beyond the financial benefits, remember that your donations are making a significant difference in the lives of those in need. Your support enables us to continue our charitable work and helps build a better society. Knowing that your contributions have a dual benefit—tax savings and social impact—can motivate you to contribute generously.
Please Note: It’s important to encourage employees to consult with a tax advisor or financial planner to understand how charitable contributions will impact their tax situations. This will help them make informed decisions about the amount they choose to donate and the potential tax savings they can enjoy while supporting Manovikas Charitable Society’s initiatives.