When a nonprofit ngo organization received money donation in cash or cheque, the ngo organization should issue a receipt to the donor. That donation receipt should bear the CIT approval period and the number of 80 g certificate.
Nonprofit NGO should avoid receiving money donation through cash which is safe both for the donor and the organization.
The basic rule for a donor to donate under section 80g an organization is 10% of his annual income. If the donor donates more than the 10%, then the excess amount will not be considered for tax relief and it will be ignored. Same time the donor get 50% tax exemption for the amount which he donated on the Gross total income.
After the deduction under 80 g on the Gross total income, the payable tax value of the net taxable income will be deducted from actual payable tax value. So the differential value from Actual payable tax and net payable tax will be the tax relief for the donor. Now lets see.
How the donor gets 80 g tax relief ?
Example : Mr. Xyz is working in a company and drawing a monthly salary of 20,000 Rupees. He donates an organization in a month for Rs. 6000/- Now lets calculate his 80 g tax relief:
||Amount in Rs.
|Annual salary income of Mr. Xyz - Income tax on this Rs. 24,200
|Gross Total Income of Mr.Xyz.
|Less: Deduction under 80 g on taxable income
( 50% of the donation amount )
|NET Income - Income Tax on this Rs.23,210
|So the payable tax on Annual salary
|Less: the payable tax after deduction under 80 g
|Actual tax relief to the donor (Mr. Xyz)
Post your NGO PROFILE, which may help others to know about your Organization. Any Non Governmental organization from any country shall post their profile which is 100% free.
You shall post your Organization Video Links, You shall upload your Organization Project files and Much More. This NGO SEEK also helps the NGOs to find Volunteers, Donors, Sponsors and other needy for their NGO Projects.
Useful NGO Books for NGO Management
★ Handbook for NGOs by Nabhi Publications
★ NGO Handbook (In Hindi)by Nabhi
★ Formation and Management of NGOs: Non Governmental Organisations by Anita Abraham
★ Formation and Management of NGOs (Non Governmental Organisations) - Universal Publication
★ How to start promote and manageNGO by Xcess
★ Handbook for NGO's and NPO's by Taxmann Publications Private Limited
★ NGO & Training Centre in India by Mantri Pragada Markandeyulu
★ NGOs in India: The challenges of women's empowerment and accountability (Routledge Contemporary South Asia Series)
★ Management of NGO's by Laxmi Publications
★ Interesting Issues on Charitable Trusts or Institutions NGOS & NPOS a Complete Guide to Frequently Asked Questions by CA N Suresh
★ NGO Management: With Case Studies by Surendra Publications
Useful books for TRUST formation and Management
★ Formation & Management Of A Trust by Nabhi's
★ Formation and Management of Charitable and Religious Trust Educational and Medical Institution under Income Tax Law by Universal Law Publishing co
★ All About Charitable Trusts - Formation, Registration, Management & Taxation of CHARITABLE & RELIGIOUS TRUSTS (With Free CD) by CA Virendra K. Pamecha , CA Rakesh Nahar
★ Formation and Management of a TRUST along with Tax Planning by Nabhi Publication
Useful books for Society formation and Management
★ Formation and Management of Societies (Telugu) by Pendyala Satyanarayana
★ Formation & Managements Of A Society by Nabhi
★ Formation & Management of a SOCIETY by Nabhi New
★ Formation and Management of Societies by Y. Kameshwara Rao
★ Formation and Management of a Co-operative Society alongwith Multi State Co-operative societies Act & Rules by Nabhi Board Of Editors
Useful books for NGO fundraising
★ Funding of NGOs: How to Manage by Mahaveer & Sons
★ Taxation of Trusts & NGOs by Taxmann
★ How to Start & Promote NGOs & NPOs in India Starting, Management & Funding of NGOs /NPOs Covering Schemes of the Ministries of Government of India by Xcess Infostore Pvt. Ltd.
★ Nonprofit: Starting a Charity - How To Successfully Change Lives, Give Aid & Build a Community (Contribution, Not For Profit, Fundraising, Startup, Donation, Volunteering, NGO Book 1)
★ Fundraising: 10 Tips to Raise Money for Ngos, Small Business and Non-profits
★ NonProfit Crowdfunding Explained: Online Fundraising Hacks to Raise More for Your NonProfit
★ Fundraising Techniques and Financial Assistance to NGO by Anmol Publisher
★ Guide To Fundraising and Public Relations For NGOs and Non Profit Organisations by CSIM