Make Sparkle Gift Cards part of your tax planning!
01 March, 2024
You may already be familiar with Sparkle Gift Cards (SGC) through recommendations from friends and family or by purchasing the card yourself. But did you know that aside from being a thoughtful gift for special occasions and supporting NGOs in fundraising efforts, SGC can also assist you in tax planning? By gifting the card to someone, you not only contribute to the community but also enjoy tax-saving benefits. It's a win-win situation!
About Section 80G of the Income Tax Act
Section 80G of the Income Tax Act allows individuals and companies to claim deductions for donations made to certain charitable institutions or funds. This deduction can be up to 50% or 100% of the donated amount, depending on the recipient organization's classification. However, not all donations are eligible, and only those made to specified funds or institutions qualify. To claim this deduction, taxpayers must obtain a receipt or 80G certificate from the recipient organization, which should include details such as the institution's name, address, PAN number, amount donated, and its registration number under section 80G.
Individuals can claim the 80G certificate for donations made to an NGO and avail tax benefits as per the provisions of the Income Tax Act by following these steps:
Ensure Eligibility: Confirm that the NGO to which the donation was made is eligible for tax deduction under Section 80G of the Income Tax Act. Not all NGOs qualify for this deduction, so it's important to check beforehand.
Obtain Receipt: Request a receipt or certificate from the NGO acknowledging the donation. This receipt should include details such as the name and address of the NGO, PAN number of the NGO, amount donated, and its registration number under Section 80G.
Submit with Tax Returns: When filing income tax returns, attach the receipt or certificate obtained from the NGO as proof of donation. Ensure that all details on the receipt are accurate and match the information provided in the tax return.
Claim Deduction: While filing taxes, claim the deduction under Section 80G by entering the amount of donation made to the eligible NGO. The maximum allowable deduction depends on the type of NGO and can be up to 50% or 100% of the donated amount.
Keep Documentation: Maintain a copy of the donation receipt and other relevant documents for future reference or in case of any audit by tax authorities.
Sparkle Gift Cards has partnered with the following NGOs where your contribution goes to-
- Agewell Foundation
- Cansupport
- Chintan
- Concern
- Cry
- Goonj
- Hans Foundation
- People For Animals
- Railway Children
- Smile Foundation
These NGOs are making significant contributions to various sectors such as old age homes, palliative cancer care, environment, women's empowerment, rural development, children's welfare, and animal welfare.
Take a step forward, purchase these cards, gift them to someone, and enjoy the benefit of 80G tax exemption offered by these NGOs.
