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This Independence Day, let’s start contributing to Indian Security forces actively

Deduction under Section 80G: Every taxpayer can make contribution/donation to specific funds in order to claim deduction from his Gross Total Income to reduce the tax liability. Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act.

Ever had feeling that how you can contribute to this nation? Did you also have a thought triggered in your mind that you could do something for Indian Security forces on this Independence Day?

Being in CA Fraternity, we cannot contribute physically to save our nation & be a part of Security forces. However, we can surely contribute to help security forces or Indian Army financially. I am writing this to re-iterate the options available with us & spread awareness in our fraternity to help security forces financially with the help of our clients within legal framework.

There are two options available through which we can route the funds at the appropriate place. Though, there is nothing new in this but somewhere either we are not aware of the organizations or reluctant to search due to paucity of time whenever client approach for making donation/contribution.

a. Deduction under Section 80G: Every taxpayer can make contribution/donation to specific funds in order to claim deduction from his Gross Total Income to reduce the tax liability. Contributions made to certain relief funds and charitable institutions can be claimed as a deduction under Section 80G of the Income Tax Act. All donations are not eligible for deduction under section 80G. The various donations specified in section 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in section 80G. Specific trusts/funds working for security forces are mentioned at the end of this article where funds may be donated.

b. CSR Obligation: Corporate Social Responsibilityis required for all companies viz. private limited company, limited company. The following companies are necessary to constitute a CSR committee:

  • Companies with a net worth of Rs. 500 crores or greater, or
  • Companies with a turnover of Rs. 1000 crores or greater, or
  • Companies with a net profit of Rs. 5 crores or greater.

Further, the activities/Projects or such other activities / projects as may be notified by the Ministry of Corporate Affairs from time to time as a part of its the Corporate Social Responsibility (“CSR”) inter-alia includes Measures for the benefit of armed forces veterans, war widows and their dependents.

There are various organisations which are registered and can receive the funds under CSR policies to utilize the same for the benefit of armed forces veterans, war widows and their dependents

In light of the above discussions, it can be seen that Donations u/s 80G & Contribution towards CSR Activities may include the contribution towards Security/armed forces in certain manner.

Before writing this brief, I have tried to research & compile data of few organizations which are actively engaged in helping Indian security/armed forces or their families in direct or indirect manner. The details of the same is given at the end of this article.

I sincerely appeal to the fraternity members to share this information further so that even a single contribution would make our efforts worth. Further, let us try to execute this in our routine activities to proudly be a part of partner in helping the nation.

List of funds/trusts eligible for 80G & CSR which are engaged in helping Indian army or their families:

1. Army Central Welfare Fund: The contribution towards Army Central Welfare Fund is 100% exempted from income Tax vide clause (III HC) of Section 80-G of Income Tax Act 1961. Only individuals can make donations.

Contact details/contribution:

2. Paraplegic Rehabilitation Centre, Pune: Disabled personnel, from the Defence Forces of India following spinal cord injury which means paraplegics (with both lower limbs paralyzed and no bladder and bowel control) and tetraplegics (all four limbs paralyzed with no bladder and bowel control) suffer from one of the severest forms of physical disability that can afflict a living individual. After initial treatment although they become wheelchair borne, they still require life-long medical care to prevent complications of urinary tract infection leading to kidney failure, bedsores, and pneumonias. Hence there is the need for funds at Paraplegic Rehabilitation Centre for these unfortunate disabled comrades-in-arms. All donation to it are exempted under section 80-G of Income Tax Act 1961 (tax break is 50% of sum contributed)

3. Central Command Army Wives Welfare Association: The aim of the Army Wives Welfare Association is to support and enhance the official welfare efforts within the Indian Army, focusing especially on the welfare of families, children and widows of all ranks including retired personnel of the Army. Deductions u/s 80G & CSR benefit would be available for donating amount to this association. 

4. Ardh Sainik Welfare Trust: It is a NGO   set up to facilitate the CPMFs personnel for their overall growth in their personal and social life. There is no such portal/platform where all Central Para Military Forces can share their personal and social problem and get reliable support.

5. Armed Forces Flag Day fund: Many brave and gallant heroes from the Armed forces have laid down their lives in the service of the country. Armed forces flag Day brings to the forefront our obligation of looking after our disabled comrades-in-arms, widows and dependents of those who have sacrificed their lives for the country. You may contribute to the above fund online as well.

Further, I have compiled the list of organizations available across India which are similar to the organisations mentioned above. The same would be shared on your request.

You may write me at cahitesharora1@gmail.com for receiving the same.

I request all of you to share this with your colleagues & practicing members who can help in donating/contributing more funds to such wonderful organisations & help the armed forces indirectly. 

With this, I wish you all a very Happy Independence Day. Let’s keep working & make our nation proud globally.

Author: CA Hitesh Arora-  Email: Cahitesharora1@gmail.com

Categories: Income Tax

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