Can an NRI declare tax deduction on donations to NGOs in India?

I’m a non-resident Indian (NRI) based mostly 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?

—Name withheld on request

Under the India Income-tax regulation learn with Foreign Contribution (Regulation Act), 2010, a person is eligible for deduction from taxable earnings in India for donations paid to NGOs in India offered the next circumstances are happy:

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

-The NGO is registered beneath Section 80G of Income-tax Act, 1961 in India

-The donation is made through digital means.

Thus, for those who intend to remit funds from exterior India, you could test with the NGO if it has acquired approval from the federal government of India to obtain international donations and it’s registered beneath Section 80G of Income-tax Act, 1961 in India.

The deduction for donation made to the NGO registered beneath Section 80G of Income-tax Act, 1961 might be decrease of (a) 50% of complete donation made; or (b) 50% of 10% of adjusted gross complete earnings. The adjusted gross complete earnings might be calculated as complete earnings much less all deductions accessible (besides deduction beneath Section 80G). The deduction is on the market provided that particular person taxpayer has not opted for concessional tax price beneath the India Income-tax regulation which is on the market if the taxpayer is keen to forego specified exemptions and deductions (together with deduction beneath Section 80G).

(Query answered by Sonu Iyer, tax associate and other people advisory companies chief, EY India.)

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