80G Tax exemption is getting less popular
Tax is something that cannot be avoided by any individual who is earning above the tax slab. However, there are some ways to get some tax exemptions. 80G is one such method, and it used to be very popular. People make donations to charitable trusts, and in return, they get exemptions. Today, this is becoming less popular.
The main reason is that people are moving slowly towards the New Tax Regime, and in the New Tax Regime, there is no 80 G exemption, and it does not matter. There are still people using the old tax regime, and only those people make use of the 80G exemption.
80G Trust is heavily being monitored
There is a complaint that many charitable trusts in India bring funds from foreign countries through donations. Some are genuine, and some are done by people who try to make black money white. This has been the case for a very long time, and with some efforts by the government, these are all coming into the radar now.
For people who would like to renew their 80 G certificate now will have to make sure the documentation is proper and their activities are properly done. The Income Tax department is also asking for photo documentation for some of these activities.
From what I understand from my CA friends, many illegal activities have been controlled because of this initiative, and most likely, if this continues, there is a high chance that some black money movements can be controlled.
New Tax Regime people don't bother
Today mostly many people have started using the New Tax Regime, and they don't bother. I don't know if this will reduce the amount of donations people make to charitable trusts, but maybe it will remove the criteria where people can expect an 80G exemption for the donations they are making. Some people are genuinely doing donations to charitable trusts, and they don't expect any exemption in return.
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People only donate for tax cuts, not real help. Now with the new tax rules, those fake donations will stop, thankfully hahaha. Good for honest charities
We have that too! For charity you get to pay less taxes, that's used a lot by companies
People try to give the wrong money, black money, to such charities and try to cut things in this way, so there should be no action against such people.
Yes the government is bringing down so many such things.
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The transition to the New Tax Regime certainly impacts the appeal of 80G exemptions, but it’s great to see that genuine charitable contributions continue, regardless of tax benefits.
People who make small donations do not bother for the tax exemption, it's only for the big ones and there I too feel that sometimes it is just one way to play around with money for tax exemption
Yes it's nothing for people making small donations.
We really need to pay attention to the tax performance. It will get better as time goes on
https://www.reddit.com/r/Economics/comments/1jvdauk/80g_tax_exemption_is_getting_less_popular/
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i am also the one who don't bottured about this thing, but i think i am wrong here.