Corporates and Individuals who donate to AWD Foundation can avail tax benefits under Section 80G of the Income Tax Act, 1961. Here are some key points related to tax benefits for corporates donating to AWD Foundation:
- Deduction from taxable income: Corporates can claim a deduction of up to 50% of the amount donated to AWD Foundation from their taxable income under Section 80G of the Income Tax Act, 1961.
- Eligibility for deduction: To claim the tax deduction, the corporate should make the donation to AWD Foundation through a mode other than cash. Donations made in kind are not eligible for deduction under Section 80G.
- Limits on deduction: The amount of deduction available to corporates is subject to certain limits. The maximum deduction that a corporate can claim in any financial year is 10% of its gross total income.
- Eligible donations: Donations made to AWD Foundation must be for a charitable purpose, as defined under the Income Tax Act. Donations made to certain specific funds or institutions are also eligible for deduction under Section 80G.
- Documentation: To claim the tax deduction, the corporate must obtain a receipt or certificate from AWD Foundation certifying that the donation was made for charitable purposes. The certificate should contain the name and address of the donor, the amount of donation, and the registration number of AWD Foundation.
In summary, corporates donating to AWD Foundation can avail tax benefits under Section 80G of the Income Tax Act. By donating to AWD Foundation, corporates can not only support the foundation's charitable activities but also reduce their taxable income and save on taxes.
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