If you are puzzled whether it is possible for an NRI to claim a tax deduction for donations to NGOs in India or not, here are some things you should be aware of.
If the NGO has acquired government clearance to accept foreign donations and if it is registered under Section 80G of the Income Tax Act, and the donation is submitted by electronic means, an NRI is qualified for a donation deduction, as per online sources.
Individuals can deduct donations sent to NGOs from their taxable income in India under the Income Tax Act of India and the Foreign Contribution (Regulation Act) of 2010, provided the following requirements are met:
The Indian government has given the NGO permission to accept international money.
In India, the NGO is registered under Section 80G of the Income Tax Act of 1961.
The contribution is made electronically.
If you want to send money from outside India, verify with the NGO if it has been approved by the Indian government to accept international donations and if it is registered under Section 80G of the Indian Income Tax Act, 1961.
The lowest of (a) 50% of the gift made, or (b) 50% of 10% of adjusted gross total income shall be deducted for donations given to an NGO registered under Section 80G of the Income-tax Act of 1961. The adjusted gross total income is derived by subtracting total revenue from all applicable deductions (except deduction under Section 80G). Only if an individual taxpayer has not chosen a concessional tax rate under India’s income tax legislation, which is available, provided the taxpayer is prepared to renounce certain exemptions and deductions (including deduction under Section 80G).
