Income tax law allows deductions when calculating the total taxable income of each beneficiary. Such deductions are permitted under Section 80G of the Income Tax Act 1961 for donations to charities or trusts. In addition to this deduction, donations to political parties, research institutes and election foundations are also possible.
Section 12AB registration exempts nonprofit organizations from the tax rate. Otherwise, it applies to ITR filling. Section 80G, on the other hand, guarantees that individuals who donate to NGOs will have that amount deducted from their taxable income, allowing them to give more.
FCRA registration is required for all Section 8 charitable foundations, corporations, and corporations receiving foreign contributions or donations. The Foreign Contribution Regulations Act 2010 governs FCRA registration. The Foreign Contribution Regulation Act (FCRA) is the law that regulates foreign contributions. The Foreign Contribution Act 2010 was passed with the following objectives
• Individual organizations and businesses must find a balance between accepting and using international donations and foreign hospitality.
• Receiving and using foreign entertainment or donations for activities contrary to national interest and being associated with or associated with these activities is prohibited..