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Can An Nri Declare Tax Deduction On Donations To Ngos In India?


I’m a non-resident Indian (NRI) primarily based in Australia. I wish to ship 1 lakh every to 2 non-governmental organizations (NGOs) in India. Can I get tax deduction for this or can deduction solely be claimed if the cash is shipped from my Indian account?

—Title withheld on request

Underneath the India Earnings-tax regulation learn with International Contribution (Regulation Act), 2010, a person is eligible for deduction from taxable revenue in India for donations paid to NGOs in India supplied the next circumstances are glad:

-The NGO has acquired approval from the federal government of India to obtain overseas donations

-The NGO is registered beneath Part 80G of Earnings-tax Act, 1961 in India

-The donation is made by way of digital means.

Thus, in case you intend to remit funds from outdoors India, it’s possible you’ll examine with the NGO if it has acquired approval from the federal government of India to obtain overseas donations and it’s registered beneath Part 80G of Earnings-tax Act, 1961 in India.

The deduction for donation made to the NGO registered beneath Part 80G of Earnings-tax Act, 1961 will likely be decrease of (a) 50% of whole donation made; or (b) 50% of 10% of adjusted gross whole revenue. The adjusted gross whole revenue will likely be calculated as whole revenue much less all deductions accessible (besides deduction beneath Part 80G). The deduction is accessible provided that particular person taxpayer has not opted for concessional tax charge beneath the India Earnings-tax regulation which is accessible if the taxpayer is prepared to forego specified exemptions and deductions (together with deduction beneath Part 80G).

(Question answered by Sonu Iyer, tax associate and folks advisory providers chief, EY India.)

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