TAX exemption benefits

Tax exemption is the deduction allowed by law that lowers the taxable income. You can avail wholesome relief from tax or decreased tax rates or tax will be for on a certain portion, as per various provisions of the Income tax for different types of income subject to prescribed conditions. Tax exemption is therefore a mandatory exemption to a general rule rather than the absence of taxation in certain conditions. Tax exemptions are given to boost certain economic activities and to promote socially beneficial activities.  This deduction can only be claimed when the contribution is made via a cheque, draft, or cash. In-kind contributions such as food, material, clothes, medicines etc., do not qualify for deduction under Section 80G. 

Section 80G of the Income tax allows the assessee to claim deduction from his/her taxable income for the donation assessee has made to charitable entities that are approved by the IT dept. BOL Foundation has the approval of the IT dept under the above section.

Donations above Rs 500/- to BOL Foundation will be eligible for 50% deduction from taxable income under Section 80G of Income Tax Act. By contributing to BOL Foundation, you will help the poorest of the poor needy people and also help yourselves with tax deduction benefit.

The benefit is availed by reducing 50% of the donated amount from your taxable salary. 

For instance, if your taxable income per year is Rs 200,000 and you make a donation of Rs 5,000 then your net taxable income will become Rs 197,500 ( i.e., Rs. 200,000 – 50% of your donation i.e., Rs. 5000) . Your tax will now be calculated on this reduced taxable income basis the prevailing tax rates.

Yes. All taxpayers (individuals/companies/Hindu Undivided Families) are eligible to make donations to our charity under Section 80G and claim a deduction, subject to limits set down by the government. Only those donations which are paid in cash or cheque are eligible, with donations made 'in-kind' in the form of clothes, food, medicines, etc. not eligible under Section 80G. 

To take care of the documentation expenses , BOL Foundation requests a minimum of Rs 500/- be donated to avail tax exemption under IT sec 80G.

Individuals wishing to claim deduction under Section 80G need to have the following documents to support their claim.  

1. Duly Stamped Receipt: It is mandatory to have a receipt issued by our trust/charity for your donation. This receipt will include details like the name, address and PAN number of the trust, amount donated and the name of donor.  

2. Form 58: Form 58 is essential if a donor intends to claim 100% deduction on a donation, without which their donation will not be eligible for 100% deduction. Note, with BOL Foundation only 50% deduction on dontation amount can be claimed.

3. Registration Number of Trust: We provided our registration number provided by the Income Tax Department and our donors should ensure their receipt contains this number. This registration number needs to be valid on the date of a particular donation, failing which a donation might be in eligible for deductions.

An individual can claim deductions against donations made under Section 80G. The payment for the donations can be made in cash or through cheque and drafts. However, one needs to keep a few things in mind in this regard:  

1. From FY 2017-18, cash donations exceeding the mark of Rs.2,000 will not qualify for the deduction.

2. Donations made in kind (food, medicines, clothes, etc.) will not qualify for the deduction.

3. For donations greater than Rs. 2,000 To be able to claim deductions under Section 80G, you have to make donations in any mode other than cash.

4. The donations will either be eligible for a deduction of 50% or 100% (with or without restriction), as per the rules prescribed under Section 80G.

Yes, you can expect your receipts within 7 business days after you have made the donation.

Cash donations from Rs 500/- to Rs. 2,000/- is applicable for 80G certificates. Cash donations above Rs. 2,000/- is not applicable for 80G certificates. However, monetary donations above Rs. 2,000/- made in cheque, online transfer or non-cash modes is applicable for 80G certificate.  

We recommend you to contact your CA for any tax related exemption. From our side, we do provide a digital tax appreciation certificate within 7 business days from the date of contribution. On a need basis, BOL Foundation would generate these certificates periodically and email to donors.

We may not be able to provide you a duplicate receipt. But we can send you the Income Tax Exemption certificate copy.

NRI (Non-Resident Indian) donors, who are Indian citizens, holding an Indian passport are eligible to tax exemption under section 80G of the Income Tax Act. Don’t forget to mention your Indian PAN Card Number during your donation to avail the tax benefits. You can also write to admin@bolfoundation.org for any further queries.

Ans: Yes and No. Any monetary donations or transactions earned by Indian citizens will be honored irrespective of their physical location (India or Foreign). However, we cannot receive any international or foreign monetary funds earned by non-Indian citizens (even if payment is made using INR).This is in accordance with the Govt. Of India (GOI) FCRA norms.  

For example, Person A is an Indian passport holder, and a citizen of India working in USA/Dubai/Any Foreign Country, can donate towards the foundation and receive 80G tax exemption. However, consider, Person B, who is not an Indian passport holder or not a citizen of India cannot donate, hence cannot receive 80G tax exemption.