Support to Akshaya Patra and avail benefit of Sec 80G of Income Tax Act and 35AC

In most cases it is seen that donation to any NGO qualify for only 50% deduction under Sec 80G of Income Tax Act. However it’s not the same when you donate to The Akshaya Patra Foundation. All donations above ` 500 towards Akshaya Patra qualify for 100% tax exemption. Let’s have a look at it. Under Section 35 AC of the Income Tax Act, the Central Government, on recommendation from the National Committee for the Social and Economic Welfare has notified the Project “Mid-Day Meal Scheme run by The Akshaya Patra Foundation” as an eligible project for receiving 100% benefits on tax exemption for contribution of ` 500 and above. Thus when a donor donates to Akshaya Patra he not only becomes eligible for tax deductible donation under Sec 80G of Income Tax Act, but also under Section 35AC.

This provision makes donation towards Akshaya Patra a dual benefit. The donation amount proves to be of great aid for mid-day meal beneficiaries and at the same time the donor receives 100% tax exemption too. Once a donor contributes a donation, he or she receives a receipt of the same within 10 days along with a thank you letter and a tax exemption certificate stating 100% benefits of tax exemption. This certificate can be used by the donor during filing of income tax returns for the respective financial year.