#Get 80% tax exemption by donating

[happydonate]

WANT YOU HELP THOSE WHO HAVE NO HOPE SO DONATE MONEY TO NGO - HAPPY SOUL

Happy Soul World - This Charity is the best charity in India. It’s Help Those Who Have No Hope. Happy Soul Charity Gives Tax Benefits to Donors. Donate Money To NGO.

[feelingbluepolitics]

This is an analysis that is extremely important for at least two points which should become clear:

1) It is not just one-sided, that White Evangelicals worship trump and Republicons to protect them, to give them politically religious power, to support white supremacy, and perhaps, to hasten the "end of days."

trump and other Republicons who don't actually give one damn in hell about religion are delighted with the support. It's not just the votes. It's the plan to have wealthy and powerful churches take the hit for letting people die in the streets after Republicons kill off the federal government to get rid of the need for taxation.

Wealthy Republicons wholly support Christian community "charity" to feed, shelter, give medical care as they see fit, assist impoverished elderly, and eradicate the need for public education expenses.

2) Plenty of wealthy Republicons not immersed in church connections don't donate or give to charities. And church tithes? Tithing, over and above the "robbery" of taxation?

If these mega-wealthy conservatives gave 10% of their income to churches, churches would be obscenely wealthy. Those churches that are that wealthy -- it's not the rich they are getting that monstrous, untaxed wealth from.

Republicons not going to church all the time, or funding publicity vanity causes and buildings, don't give outside of tax exemption claims. They just lie, like the trumps, or also like the trumps, make money hosting charitable fundraisers or running charitable foundations to raid.

"[W]e all laughed at the rich president who used to claim repeatedly that we needed a voter ID to go to the supermarket now claiming that the shutdown wasn’t a big deal for federal workers who had gone weeks without pay because they could just get friendly loans from that same supermarket, which should really be a food bank, which is where many of them had actually already been forced to turn. It’s so tone-deaf it’s almost funny.

"But it really isn’t funny. It’s ominous. There’s more to [t]rump and Ross’ bizarre Norman Rockwell parable of friendly greengrocers and your brother-in-law the jolly bank manager than just the cluelessness of old white billionaires who have never had to run a personal errand. They’re also telling a crappy old story about good old American volunteerism and the beauty of local charity and the gosh-golly spirit of communities caring for their own. If that sounds familiar, it’s because this story was actually the cornerstone of the Paul Ryan vision for America. It’s the story wherein even if you slash government entitlement programs and food programs and health care, what arises—beatifically and from the rubble—to replace it all is good old-fashioned local and religious charities. In Paul Ryan’s telling, there was no crisis a good old-fashioned barn raising couldn’t cure. And so every time [t]rump minimized the human suffering of the shutdown, he wasn’t just saving himself or belittling government workers. He was also building out a long-running conservative narrative that downplays the need for many crucial government services.

..."It’s why he retweeted an op-ed from an anonymous writer, claiming to be a senior member of his administration, who trashed federal workers as lazy and disloyal to the White House. The op-ed went so far as to urge that the shutdown continue indefinitely so those workers would leave the government, with the author claiming that 80 percent of federal workers 'do nothing that warrants punishment and nothing of external value. … That is their workday: errands for the sake of errands—administering, refining, following and collaborating on process.'

"That’s been the drumbeat on Fox News too, with one guest cheering that the shutdown made more Americans aware of 'how nonessential a lot of these nonessential workers actually are,' a way of trashing both government workers and government services at the same time.

"It’s a story in service of the idea that government services—food assistance and housing assistance and services for the poor—can be readily offloaded onto private, especially religious, charities. To hear Secretary Ross and [trump] discuss the ways in which all of us can have private arrangements with the banker and grocer who live up the corner from Big Bird is to hear that story told again...work being done around housing, food insecurity, and women’s shelters? They don’t think that should be undertaken by government in the first place.

..."It’s too easy to say that the enduring lesson of the shutdown is simply that [t]rump and his plutocrat Cabinet are hilariously clueless about how most of us live. The real story is much more grim: They are also trying to other us against one another, positing government workers as unpatriotic if they decline to work for free, and lazy for being unwilling to put [trump’s] interests ahead of their own. They’re making the same bad argument that I wish had stopped when Paul Ryan departed the national stage: that the best source of aid in a crisis lies in the charity of warm and loving communities, not in government services."

[aliavlaw]

Aliavlaw.com : Probate Attorneys In Los Angeles California | Estate Planning Beverly Hills Ca

How Much Is The Required Minimum Distribution From Retirement Accounts?

The IRS has updated the formulas for Required Minimum Distributions, or RMDs, the amounts required to be taken annually from 401(k)s, 403(b)s, or traditional Individual Retirement Accounts (IRAs) in 2022. According to a recent article from AARP titled “How an IRS Rule Update Impacts Required Minimum Distributions,” the new RMDs will be smaller now than in previous years. RMDs have always been a complicated topic, and now they might just be a little more so.

Getting the calculations right has always been a bit of a muddle. For one thing, in 2020 RMDs were suspended entirely. Before the pandemic, the 2019 SECURE Act changed the age when you had to take withdrawals from 70½ to 72. This was except for people who were already taking RMDs in 2019. Are you confused?

Now, if your 72nd birthday occurred before July 1, 2021, you need to take an RMD before December 31. However, if your 72nd birthday takes place in the second half of 2021, you have until April 1, 2022 to take your first withdrawal—only you’ll need to use the 2021 tables from the IRS to calculate it.

A reminder: Roth IRAs do not require any RMDs, but 401(k) Roths do.

Starting in 2022, many people will be able to take about six or seven percent less in their RMD under the life expectancy tables from the IRS. A 75-year-old single woman with an IRA worth $100,000 at the end of 2021 will need to withdraw at least $4,065 in 2022, about $300 less than under prior guidelines.

However, you need to consider whether or not taking less from your IRA or 401(k) or 403(b) is a good idea in the long run. If you need to take more to live on, then you need to withdraw what you need, regardless of the IRS rules. There’s no penalty for taking more, except the taxes you’ll pay.

If you retire before age 70, before any RMDs are required, you might want to withdraw more from your tax-deferred retirement accounts in order to delay taking Social Security benefits. The longer you delay taking Social Security benefits, the larger your monthly payment will be. This is a good move for many Americans, especially those who are counting on Social Security for income in their 80s and 90s.

There isn’t a single person in America (well, maybe there is one) who isn’t frustrated by having to pay taxes on earned income required to be withdrawn from retirement accounts. However, there are ways to blunt the impact of income taxes on IRAs. Those who are older than 70½ can donate to registered 501(c)(3) charities, by making a Qualified Charitable Distribution (QCD), which is counted toward any RMD as the amount of the donation is exempted from income taxes. However, this only works if you take the standard deduction and don’t itemize charitable gifts.

Unless the rules change, converting tax-deferred IRA money into a Roth IRA is a strategy to shift not whether you pay taxes, but when. Converting traditional IRA assets during a low-income year—or a portion of traditional IRA assets—allows the money in the Roth account to continue to grow tax free and no taxes are due on any withdrawals. Unless the laws change—again.

Reference: AARP (Dec. 8, 2021) “How an IRS Rule Update Impacts Required Minimum Distributions”

Suggested Key Terms: Retirement Accounts, Required Minimum Distributions, RMD, IRS, IRA, Roth, Converting, Tax-Deferred, Tax-Free, Qualified Charitable Distribution, QCD, 2019 SECURE Act, Pandemic, 403(b)

Contact us :

(310) 800-2911291 S. La Cienega Blvd. #310 Beverly Hills, CA 90211

Website : https://aliavlaw.com

[jgan-catabay]

Life Insurance Basics

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:

1. Replace income for dependents If people depend on an individual’s income, life insurance can replace that income if the person dies. The most common example of this is parents with young children. Insurance to replace income can be especially useful if the government- or employer-sponsored benefits of the surviving spouse or domestic partner will be reduced after their companion dies.

2. Pay final expenses Life insurance can pay funeral and burial costs, probate and other estate administration costs, debts, and medical expenses not covered by health insurance.

3. Create an inheritance for heirs Even those with no other assets to pass on, can create an inheritance by buying a life insurance policy and naming their heirs as beneficiaries.

4. Pay federal “death” taxes and state “death” taxes Life insurance benefits can pay for estate taxes so that heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011, will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level estate taxes.

5. Make significant charitable contributions By making a charity the beneficiary of their life insurance policies, individuals can make a much larger contribution than if they donated the cash equivalent of the policy’s premiums.

6. Create a source of savings Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn at the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax-deferred (and tax-exempt if the money is paid as a death claim).

Types of Life Insurance

There are two major types of life insurance — term and whole life.

1. Term Life Term insurance is the simplest form of life insurance. It pays only if death occurs during the term of the policy, which is usually from one to 30 years. Most term policies have no other benefit provisions. There are two basic types of term life insurance policies — level term and decreasing term. Level term means that the death benefit stays the same throughout the duration of the policy. Decreasing term means that the death benefit drops, usually in one-year increments, over the course of the policy’s term.

2. Whole Life/Permanent Life Whole life or permanent insurance pays a death benefit whenever the policyholder dies. There are three major types of whole life or permanent life insurance — traditional whole life, universal life, and variable universal life, and there are variations within each type.

In the case of traditional whole life, both the death benefit and the premium are designed to stay the same (level) throughout the life of the policy. The cost per $1,000 of benefit increases as the insured person ages, and it obviously gets very high when the insured lives to 80 and beyond. The insurance company keeps the premium level by charging a premium that, in the early years, is higher than what is needed to pay claims, investing that money, and then using it to supplement the level premium to help pay the cost of life insurance for older people.

By law, when these “overpayments” reach a certain amount, they must be available to the policyholder as a cash value if he or she decides not to continue with the original plan. The cash value is an alternative, not an additional, benefit under the policy.

3. Universal Life Universal life, also known as adjustable life, allows more flexibility than traditional whole life policies. The savings vehicle (called a cash value account) generally earns a money market rate of interest. After money has accumulated in the account, the policyholder will also have the option of altering premium payments — providing there is enough money in the account to cover the costs.

4. Variable Life Variable life policies combine death protection with a savings account that can be invested in stocks, bonds, and money market mutual funds. The value of the policy may grow more quickly but involves more risk. If investments do not perform well, the cash value and death benefit may decrease. Some policies, however, guarantee that the death benefit will not fall below a minimum level. Another variant, universal variable life, combines the features of variable and universal life policies. It has the investment risks and rewards characteristic of variable life insurance, coupled with the ability to adjust premiums and death benefits that is characteristic of universal life insurance.

#areteautomation #lifehealthadvisors #bestforhealth #healthtips #livemorechallenge #bestowlifehealthadvisors

Credits : Life Insurance Institute

Published : 2022

Source : https://www.iii.org/article/life-insurance-basics

[legalwindowjai]

ITR Filling in Jaipur

https://www.legalwindow.in/itr-filing-for-individuals/ Personal ITR filling

Any individual earning an income above the minimum exempted amount is liable to pay income tax. The income can be earned from any source like salary, rental income, interest income from savings, income from mutual funds, agriculture income, sale of property or business, or professional income.

Income Tax Return is a form required to be filed with Income Tax Department. The format and applicability of these forms are defined by Income Tax Department. All forms have separate disclosure requirements according to the Incomes Reported.

Income tax rates are finalized in the Union Budget before the start of the financial year. From Assessment Year 2021-2022, the concept of new tax regime and old tax regime has also been introduced.

The government has given the option to choose between the new and old tax regimes to the taxpayers. The basic concept behind these regimes is that if you do not have investments etc to claim various deductions/exemptions under Sec.80 then you can opt for a new tax regime and pay taxes at lower rates.

Legal Window offers best services for ITR filling in Jaipur

A person who chooses to opt for a new tax regime cannot claim the following deductions-

Certain allowances like LTA, HRA, allowances granted to meet expenses in the performance of duties of the office. Deductions under salary like Standard Deduction, Entertainment allowance, and Professional tax. Interest payable on borrowed capital for self-occupied property. Standard Deduction in case of family pension. Several deductions are available under Sec.80 like life insurance, health insurance premium, pension funds, provident fund, donations, etc.

The option to avail of the option can be taken while filing the Income Tax Return. Our Team will help you assess the beneficial option for you so that you can get maximum tax benefits.

This Return Form is to be used by an individual who is a resident other than not ordinarily resident, whose total income for the assessment year 2021-22 does not exceed Rs. 50 lakh and who has income under the following heads:-

(a) Income from Salary/ Pension; or

(b) Income from One House Property; or

(c) Income from Other Sources.

(d) Agricultural Income (Up to INR 5,000)

  A. Salary/Pension: 

Salary refers to the remuneration/consideration that a person receives for the services that he/she renders under a contract of employment. For an amount to be considered salary, the existence of an employer-employee relationship is a must. As per the Income Tax Act, 1961, the following are included in salary income:

  wages;

    annuity     or pension;

    gratuity;

    fees,     commissions, perquisites, or profits instead of or in addition to any     salary or wages;

    advance     of salary;

    payment     received by an employee in respect of any period of leave not availed of     by him;

    annual     accretion to the balance at the credit of an employee participating in a recognized     provident fund

    aggregate     of all sums that are comprised in the transferred balance in a recognized     provident fund, 

    contribution     made by the Central Government or Employer under a pension scheme referred     to in section 80CCD;

     B. One House Property 

If the taxpayer is the owner of a property from which he/she is earning rent, the rent proceeds become taxable. However, if the taxpayer is using the property for running some business or profession, the same would be taxable under the heading “Income from Business or Profession.”

 C. Other sources

This includes Interest, dividend income but does not include income earned from winning lottery or racehorses

 D. Agricultural Income 

The agricultural income should not exceed INR 5,000)

 Income Tax Rates for Individuals (AY 2021-22)

 Income

Up to 60 years of age

Up to Rs 2.5 Lakhs

Nil

Rs 2.5 Lakhs – Rs 5 Lakhs

5%

Rs 5 Lakhs – Rs 10 Lakhs

20%

Above Rs 10 Lakhs

30%

Note: A resident individual having taxable income up to Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)

  Income

Between 60-80 years of age

Up to Rs 3.0 Lakhs

Nil

Rs 3.0 Lakhs – Rs 5 Lakhs

5%

Rs 5 Lakhs – Rs 10 Lakhs

20%

Above Rs 10 Lakhs

30%

Note: A resident individual having taxable income up to Rs 5,00,000 will get a tax rebate of Rs.12,500 or the amount of tax payable (whichever is lower)

  Income

Above 80 years of age

Up to Rs 5 Lakhs

Nil

Rs 5 Lakhs – Rs 10 Lakhs

20%

Above Rs 10 Lakhs

30%

 New Tax regime from AY 2021-22

An option to pay lower tax shall be available only if the Income is calculated without claiming the following exemptions and deductions:

Exemption &  Deduction are not allowed

Exemption &  Deduction allowed

Leave Travel  Allowance (LTA)

Transport  Allowance in case of a specially-abled person

House Rent  Allowance (HRA)

Conveyance  Allowance to meet the conveyance expenditure incurred as part of employment

Conveyance  Allowance

Any compensation  received to meet the cost of travel on tour or transfer

Children  Education Allowance

Deduction under  80CCD(2)

Standard  Deduction on Salary

Deduction under  section 80JJAA

Professional Tax

 Interest on  Housing Loan

 Deduction under  chapter VIA –

80C – Insurance premium  etc

80D – Medical  Insurance

80E – Education  Loan 

 Special Rate under New Tax regime for Individuals & HUF (AY 2021-22) 

Income

Rate of Tax

Up to Rs 2.5  Lakhs

Nil

Rs 2.5 Lakhs – Rs  5 Lakhs

5%

Rs 5 Lakhs – Rs  7.5 Lakhs

10%

Rs 7.5 Lakhs – Rs  10 Lakhs

15%

Rs 10 Lakhs – Rs  12.5 Lakhs

20%

Rs 12.5 Lakhs –  Rs 15 Lakhs

25%

Above Rs 15 Lakhs

30%

 Our 3 Step Simple Process

Engagement & Consultation

Information Collection & Documentation

Filing & Closure

Why should you file Income Tax Return?

Makes you a compliant citizen

Avoid notices from the IT department and Claim Refunds

Document proof of creditworthiness

Avail tax benefits on past losses and Avoid penalties and late fees

Easy availability of bank loans and Carry forward of losses

Obtaining Government tenders/approvals and Visa Processing

Documents Required for Income Tax Filing

·       Form-16

·       Form 16A/16B/16C

·       Salary Slips

·       Interest certificates from Post Offices & Banks

·       Form 26AS

·       Tax-Savings Investment Proofs

·       Deductions under Section 80D to 80U

·       Home Loan statement from NBFC/Bank

·       Capital Gains

·       Aadhaar Card

·       PAN Card

[bloginspiringilango]

Sponsor for the girl children supported by an NGO to benefit from the 2 hour online English training in greeting and introducing today by Google Paying at +91 99419 54545 or use the given Vision Inspiring Ilango Foundation account or PhonePe to the above phone number. Donations will be utilised as sponsors for the training. Your donations will get you 80 G income tax exemption certificate.

[charteredaccountantjanakpuri]

Why is Filing Income Tax Return Important?

Have you ever wondered why does an individual file his Income Tax Return? Simply, people earn some income during a particular year and generally make couple of investments in various schemes and undertake several expenses related to their business or profession. On such income earned by the individuals, they need to pay some amount of tax to the government. Hence, in order to declare the income and make such payment of tax, the Income Tax Return is filed.

 However, it’s not that you can file the Income Tax Return only if you have to pay taxes. You can voluntarily file it, rather, you should voluntarily file it as there are numerous benefits attached to the same. Let's have a look at the conversation between Arun, Tax Consultant (Fictional Character) and Rohit, a businessman (Fictional Character) to have a better understanding on the basics and importance of filing ITR.

 Rohit:      Arun, what is an ITR?

 Arun:   Income Tax Return, i.e. ITR, is a form that a person has to submit to the Income Tax Department. It contains information about a person’s income and the taxes to be paid on it during the year. Information fed in ITR should pertain to a particular financial year, i.e. beginning on 1st April and closing on 31st March of the following year.

 Rohit:   Okay, who all individuals need to file ITR?

 Arun:   Rohit, firstly you need to know who is referred to as an individual as per the Income Tax Act. Individual refers to the natural human being, whether male or female, minor or major. An individual's gross total income comprises wages, salaries, dividends, interest, business income, and any other income he earns throughout the year.

 It is obligatory to file income tax returns for all resident individuals of India whose total income is above Rs. 2.5 lakh after eligible deductions and are below 60 years of age. Individuals of the age of 60 and 80 or above are required to file their ITR if their net income is more than Rs. 3 lakhs and Rs. 5 lakhs, respectively. Individuals having income below the basic exemption limit are not required to file ITR by law.

 Rohit:  Oh! Is filing ITR important only for declaring income to the Income Tax Department or there are some other benefits too.

 Arun:  The filing of income tax return is not only for the purpose of declaring earnings to the Income Tax Department and paying taxes, but it allows you to avail other benefits too, that can be advantageous for you in the short and long-term.

 Rohit:  All right! Can you sum up some advantages of filing ITR?

 Arun:  Sure Rohit!

 Some of the benefits of filing income tax return are:

 ITR receipt acts as a very important document

ITR receipt acts as a proof of Income of a person and of payment of taxes. It is much more detailed than Form 16. It contains details of the total income, including details of income from respective sources.

 Ease in claiming tax refunds

 It is very important to note that one can claim a tax refund only if he is filing an income tax return after claiming all the eligible deductions for that financial year. Therefore, if you are a salaried person who is getting salary after deduction of TDS, or if TDS is getting deducted on interest income of your fixed deposits, or TDS is getting deducted in any other way, it is essential to file your ITR to claim a refund of the tax deducted, if any, which is reflected in your Form 26AS.

 Ease in getting loan approvals

 Filing ITR helps individuals when they have to apply for a vehicle loan, house loan, etc. The majority of banks ask for the copy of income tax returns of last couple of years as proof of income statement of a person. This serves as a mandatory document for the loan approval.

 Adjustment of losses of previous years

 Filing ITR on or before the due date enables the individual to carry forward losses to subsequent years, which ultimately get set off against the income of subsequent years. This means deduction of certain losses from the relevant income helps the individual reduce his future income tax liability. This is only possible if one files his ITR.

 Quick processing of VISA

 Many embassies require an individual to furnish copies of his tax returns for the past few years at the time of the application for a visa. These are amongst mandatorily required documents and hence it is always advisable to timely file your ITR.

 Saves from Penalty and Prosecution

 Evasion of taxes and late filing of ITR carry penalties around the world, including India. Therefore, filing income tax returns and doing so on time save an individual from unnecessary difficult situations with the Income Tax Department.

 Rohit:   Oh, so many benefits! See, I want to file my ITRs for all the earlier years for which I have missed so that I can also avail all these benefits. Please let me know the procedure for the same.

 Arun:   No Rohit, now you cannot file your ITR for earlier years. Now, you can file your return only for last year as a belated return. The due date for filing a belated return is 31st December following the relevant financial year.

Rohit:  Okay, tell me one more thing Arun, my wife is a homemaker. Does she also need to file the ITR?

 Arun:   See, if she is earning income from any source and such income during the financial year is more than the basic exemption limit applicable to her, then she has to file the ITR. But, if she is not having any income or her income is less than the basic exemption limit, then it is not mandatory for her to file the return. However, as I mentioned, it would be beneficial for her if she voluntarily files the same.

 Rohit:   Okay Arun, please let me know, what are the documents required to file ITR?

 Arun:   Rohit, generally, the following documents are required to file an income tax return:

 PAN Card

Aadhaar Number

Income Tax Login credentials

Bank Statement

Investment proof for claiming deductions

TDS certificates (Form 16 or 16A)

Records of Sale or Purchase of Assets/Investments

Proof of payment of insurance premium, PPF, purchase of NSCs, Mutual funds, donations etc.

 Rohit:   What is e-verification of ITR, and how is an ITR e-verified?

 Arun:    An ITR is e-verified through an e-verification code. Electronic Verification Code (EVC) is a code sent to the registered mobile number of the tax filers while filing their returns online. It helps to verify the identity of the tax filers. An EVC can be generated through the e-filing portal of Income Tax Department.

 After successful e-verification of ITR, a taxpayer is not required to send physical ITR-V to Bangalore for further processing. Your ITR can be verified electronically through any of the following means:

 Via Aadhaar OTP

Via net banking

Via EVC on the Income Tax website

DSC

 Rohit:   Are any proofs required to be attached while filing the ITR?

 Arun:   No, taxpayers are not required to attach any documents while filing an income tax return. However, the taxpayers should keep it carefully to provide to the department if needed in case of scrutiny or any assessment.

 Rohit:   What are the due dates of filing ITR?

 Arun:   Since, you are an individual, let me tell you the due date applicable to you. The last date of filing Income Tax Return is generally 31st July following the relevant financial year. However, for financial year 2020-21, CBDT has extended the due date to file the Income Tax Return of the Individual Taxpayer to 30th September, 2021.

 Rohit:  Okay Arun, now I have understood the basics of ITR filing. Any other point you want to add?

 Arun:   So, Rohit, let me summarize why you should timely file your ITR. You must file your return and pay due taxes to the government to be a responsible citizen of India. Also, if you are liable to file ITR, then in order to save yourself from any penalty proceedings to be initiated against you, you must file your return within due date. In case you are not liable to file ITR, then also you should file your return to avail the benefits that I mentioned earlier.

 Rohit:  All right Arun! Thank you so much for clarifying my doubts…

 Note: The due dates mentioned in the article are according to the Income Tax Act, 1961. However,    these are subject to change as per the notifications and circulars issued by CBDT from time to time.

 Authored by CA Rahul Pareva, assisted by Kriti Agrawal

For any queries or suggestions, email at info@manishanilgupta.com

 About the Author and Firm

 CA Rahul Pareva possesses experience in litigation and advisory matters. He has been representing various clients before Tax Authorities. He is associated with Manish Anil Gupta & Co., CA in District Centre. MAG is renowned tax and *audit firm in Delhi* where clients complexities are transformed into solutions

 Disclaimer! This article is meant purely for knowledge and educational purposes. It contains only general information and references to legal content. It is not legal advice, and should not be treated as such..

 Source: https://www.manishanilgupta.com/blog-details/why-is-filing-income-tax-return-important

[happydonate]

Want You Help Those Have No Hope So Please Give Donation To NGO - Happy Soul

Happy Soul World - This Charity is the best charity in India. It’s Help Those Who Have No Hope. Happy Soul Charity Gives Tax Benefits to Donors. Give Donation To NGO.

[howwelldoyouknowyourmoon]

UC leader defects in 1970s and gives his observations of Moon’s behavior and aims

By Hal Davis

The highest ranking defector from the Rev. Sun Myung Moon’s Unification Church today disclosed new information about the inner workings of the organization, revealing that the young Moonies collecting nickels and dimes bring in as much as $219 million a year.

Alan Tate Wood made his revelations in interviews with The Post at his Princeton home and in testimony in Manhattan Supreme Court, where the church is challenging a City Tax Commission ruling denying it exemptions for its real estate.

Wood, the 32-year-old grandson of the late poet Alan Tate, was head of the church in Maryland and “One World Crusade Commander.”

He left the church in 1973 and now is a deprogrammer. He has written a forthcoming book about Moon’s organization, “Moonstruck.”

Wood you told The Post that the church fields a force of 2000 people, who are “on the street 18 hours a day, seven days a week.”

They each “pull in an average $150 to $300 a day,” he said. “Multiply that by 365. What do you get?” Anywhere from $109.5 to $219 million.

Wood saw for himself the results of these street collections when his Maryland group began manufacturing candles for sale to the national church. The national church then resold the candles.

“They would pay us – they would send a van with 2000 pounds of coins. We had to lug it to the bank to deposit it.”

The church has told city tax officials its income nationally is about $10 million a year, 80% of that comes from street donations.

It owns property in the Metropolitan Area assessed at $20 million.

Wood charged that Moonies sometimes say they’re collecting for a charity, then turn over the money to the church.

He said he helped raise money to buy books for inmates of a Virginia reform school. “We collected $6000. That was unheard of. We realized, my God, there’s an unlimited source of income out there. We sent the school a check for $500.”

Wood said Moon encourages this type of fraud, calling it “Heavenly Deception.”

“They raise money in Idaho, say it’s for a charitable purpose and send it to New York to invest in a restaurant,” Wood said.

Wood said he decided to leave “after I attended all the National Directors conferences. I heard Moon speak 10 hours a day. It was like being in a business meeting with a body count: how many businesses opened, how many new members, how much money coming in, who was being influenced politically. There was not one iota of emotion felt.”

He describes the church as “a religion the way Hitler’s movement was a religion. It’s a fascist power movement.”

Moon, he said, runs a “monolithic, military operation. Everything we did in the Unification Church… was to bring power into his hands.”

He said Moon’s teachings drummed obedience into their followers with a cycle of three days of eight hour lectures repeated 33 times – 99 days of indoctrination. “They talk about this being the Age of Obedience – You obey the Messiah [in] an elaborate process of obedience to successive leaders going up to Mr Moon.”

Wood explained that “peer pressure” forced members to take part in political activities.

During his testimony he said he never kidnapped any of the former Moonies he “deprogrammed.”

Young-oon Kim lied. She said Sun Myung Moon was “a pure virgin until the age of 40”

My Four and One Half Years with The Lord of The Flies

Allen Wood answers Walter Evans’ questions: VIDEO

Moon’s ignorance – he “spoke to Buddha,” but thought he was Chinese!

[radhikaschauhan]

Income Tax Slab Rates For FY 2019-20/AY 2020-21 Interim-Budget 2019-20 Key Highlights

The Act of income tax makes it compulsory for all the citizens of India and business firms to pay income tax. They are liable to pay the tax if their income is above the tax slab’s minimum income. Tax Payers can avail of the benefits of the tax under several sections of the income tax act. If taxpayers checked their tax slab and planned at the right time, it will help them add more money to their deposits. So at first, you all have to know that what is Income Tax Slab?

Income Tax Slab

As an individual, everyone works hard to grow their incomes with time. If you are a salaried individual of government or non-government or a businessman in India, then you must have to pay the tax according to the total income tax slab rate that how much you will learn in a Financial year. According to the annual income, all the individuals are categorized within a system that every individual should have to pay tax accordingly to their income tax slab rates. In the tax slab, different tax is levied on different incomes. Furthermore, the income tax slab rates are rectified, improved, and may change during the central government’s budget sessions held every year. But during the central government budget session 2019, they announced no changes in the income tax slabs for the Fy 2019-2020.

In Terms Of The Age, Taxpayers Fall Into Three Categories:-

Any individual (resident or non-resident) is of fewer than 60 years on the last day of the relevance.

Senior citizens of India belong to the age group of 60 years to 80 years during the previous year.

Super senior citizen is a resident of India and has 80 years or more during the financial year.

Income Tax Slabs For Individuals Within 60 Years Of Age For FY 2019/2020

For your better understanding, look at an example:-

Let Mr.X is 42 years old and has an annual income of Rs. Seven lakh. How much income tax he has paid?

According to the income tax slab:-

Income tax on Rs 2.5 lakh is Nil so tax payable is 0

Income tax on Rs 2.5 lakh to 5 lakh is 5% , (5 lakh – 2.5 lakh) = 2.5 lakh

So tax payable is 12,500

Income tax on Rs 5 lakh to 7 lakh is 20% , (7 lakh – 5 lakh) = 2 lakh

So tax payable is 40,000b

Total income tax is ( Rs 0 + Rs 12,500 + Rs 40,000)

= Rs 52,500

Plus cess of 4% on Rs 52,500 = 2,100

So Total income tax payable Rs = 52,500 + 2,100

= 54,600

The income tax act, 1961, also allows for deduction under section 80(C) and 80(U). So for that case, tax is calculated after considering such deduction and cess added to arrive at the local tax payable.

Income-Tax Slab For Senior Citizens Aged Between 60 to 80 Years For FY 2019/2020

 Like the previous point here also if someone’s income is 7 lakh in a year, he or she has to pay income tax Rs 54,600, but if someone between the age group 60 to 80 earns 3 lakh, then he or she don’t have to pay any tax that is a difference between the 1st and 2nd point. Where below 60 ages have to pay tax when the income goes 2.5 lakh but not for the age group between 60 to 80. They have to pay tax only when their income comes to 3 lakh.

Income Tax Slabs For Super Senior Citizens Aged Over 80 years:-

From these three points, everyone will get a clear idea about the income tax slab, and with the example which we described, every point would be cleared for everyone.

Some points which are related to the above income tax slabs you must have to know:-

The income tax slabs and rates for the financial year 2019-2020 are the same for both men and women.

If someone’s income lies in the tax slab of a maximum of 5 lakh rupees, then you will be available for the full tax rebate under section 87A.

The rates which we mentioned above of the income tax slabs do not suppress the cess and surcharge.

So now we will discuss the surcharges applicable for resident individuals:-

For the financial year, 2019-2020 new surcharges have also been put on for the rich. Here is a table for your understanding:-

Income Tax Slabs For The Other Entities For FY 2019/2020

Now we are going to discuss the other entities’ income tax slab –

1. For The Domestic Or Civil Companies-

For a domestic or civil company, the tax will be applicable for a given FYreclaineson the gross annual turnover which earned in the previous year –

According to the budget session’s announcement, the introduction of income tax slab 2019-2020 takes the new gross turn over Rs 400 crore limit for the purpose. Also, a surcharge will be applied if the income lies between 1 crore to 10 crores. And for the above 10 crore surcharge applies to 10%. With the health and educational cess of 4%.

2. For The Partnership Firms And LLP(Limited Liability Partnership)

There are no alternative income tax brackets for the partnership firms and LLPs as the total income is taxable at the rate of 30%. The surcharge levied on forms falls into two categories mentioned below –

If total income is between 1 crore to 10 crore, then the tax will be calculated at 7%.

And above 10 crores, the tax will be calculated at 12%.

With the health and education cess of 4%.

3. For the Cooperative Society:-

The income tax slab rates for the cooperative societies are given below in a table-

And also, a surcharge applies to 12% if income is above Rs 1 crore.

4. For Local Authorities:-

 The local authorities, which they will earn, are also taxable, but there are no slab divisions. They are taxed at a flat rate of 30%, and a surcharge is also applicable if the income exceeds Rs 1 crore. With the health and Educational cess of 4%.

How To Increase Your Savings From The Income Tax For The Financial Year 2019-2020:-

It is an essential thing to know about the income tax slabs. It not only tells you about the tax slabs but also prepares you for various tax-saving investments.

Depending on the income tax slab for the assessment year 2020-2021, you can increase your savings and get the benefits of tax-saving investments. Many taxpayers, for their delaying tactics, they will get the results in a failing of saving tax. Investment in tax saving schemes and using a tax calculator wisely will make your total annual income fall into a lower tax bracket.

With exact planning for the AY’s income tax slabs, 2020-2021 gets deducted from the gross total income. If you have to know more details about it, then you can hire a professional.

1. Buy Life Insurance Or Health Insurance

It is important to have life insurance for providing financial security for your family. The donation you pay on your life insurance policy which is applicable for the deduction under section 80C. The health insurance will save your families from the unexpected financial impose that may arise in accidental purpose. Under section 80D, the donation you will pay in any mode except cash to defend your family partners. Then transmitted is available for a deduction of 25,000 maximum and 50,000 for the senior citizens.

2. Submit Rent Receipts

If you don’t have your own home and live in a rented house and get HRA from the employer, you will get a deduction under deduction 10(13A). You have to calculate and stop at the maximum rent that you can save under this section. The exemption will be based on the following factors : i. If you pay any home rent ii. If you receive HRA from the employees. iii. 50% of your salary if you live in a metropolitan city and 40% if you live in a non-metropolitan city.

3. In Case If You Give Any Charitable Donations

If you give any premium to the relief funds and charitable society, you will also be available for the deduction under section 80G. You have to calculate how much you can donate and make your income fall into a lower tax bracket.

4. Higher Education Loan For The Child

If you take an education loan to pay for your child’s higher education, then you can claim a deduction under section 80E. You can make available the deduction benefit for a maximum of 8 years or the time you will pay the interest for your loan.

5. A New Home Through Home Loan

If you take a home loan to buy a new home or build a new home, you will also be available to deduce up to 2 lakh on the loan interest paid during the FY. Also, you can take advantage of a tax calculator to find more things about this.

Frequently Asked Questions

1. How will the government collect income tax?

Tendentious payment which is made by the taxpayers into nominated banks as per their tax brackets. TDS( tax dedicated source) from an individual’s income source. TCS ( tax collected at source)

2. How is taxable income different from exempted income?

As per the income tax act, you will get the benefits of subtracting your total earnings in an FY. So your rescued income is the one from which you don’t need to give any tax. On the other side, taxable income from the ultimate part of your total earnings will throw out the rescued income; then, you have to pay the tax, depending on the tax liability as per the income tax bracket.

3. Who must have to pay the income tax?

Every Indian the citizen must have to pay tax as per the income tax slabs. It is our responsibility to pay the tax on time. Also, Hindu undivided families, firms, LLP, any companies, and the local authorities have to pay tax as per the income tax bracket.

4. Is filling income tax necessary if a person’s annual income is less than Rs 2.5 lakh?

No, you don’t have to pay tax if your annual income is less than 2.5 lakh. However, you can file a Nil return for that purpose.

5. Who is eligible to avail of the rebate under section 87A?

Any resident individual with a total amount of income less than 5 lakh can claim the tax deduction under section 87A.

6. Is it necessary to maintain all records or proof of the income?

While you pay the tax and filing the income tax return as per the tax slabs, you must have to maintain all proof of your income from several sourceifase you failed to den you need some reasonable records that may support your income declaration.

7. Do I get any benefit from filing ITR on time?

Paying tax on time is your contribution to the countries development. The ITRs you will fill as per the income tax bracket will support your creditworthiness, making you compatible with getting a bank loan to achieve so many goals you dreamed of.

  Via http://invested.in/income-tax-slab-rates-for-fy-2019-20-ay-2020-21/

source https://investedin.weebly.com/blog/income-tax-slab-rates-for-fy-2019-20ay-2020-21-interim-budget-2019-20-key-highlights

[tickertapein]

Decoding Form 16: significance, components, and FAQs

The deadline to file your income tax return for the Financial Year 2019–20 and Assessment Year 2020–21 is postponed to 30th Nov 2020. And if you are a salaried individual, sorting out Form 16 is a must before filing your returns. In this article, let us look at what Form 16 is and why it’s important to collect yours from your employer.

What is Form 16?

Form 16 is issued under Section 203 of the Income Tax Act, 1961 by an employer to their employee for tax deducted at source (TDS) from the latter’s salary income. It is the summary of the amount paid/credited to the employee and taxes deducted thereon.

Significance of Form 16

Form 16 serves the following purposes:

Since Form 16 has your TDS details for a financial year, it is an important source of information when filing your income tax return (ITR)

Form 16 is proof of TDS deduction on salary from your income and is an important document for tax compliance

You can furnish this form as proof during any income tax-related scrutiny

Some organizations require you to submit Form 16 from your previous employer as part of the onboarding process

Banks and other financial institutions accept Form 16 as a valid proof of income, which is crucial to get approval on loans

In case you are to travel abroad, certain visa checklists require you to submit Form 16

When is Form 16 issued?

As per the current guidelines, an employer is required to issue Form 16 annually on or before 15th Jun of the year following the financial year in which TDS was deducted. In case there was no tax deducted at source in a given year, the employer will not issue Form 16 for that year.

Components of the salary certificate

Form 16 has two components: Part A and Part B.

Part A of Form 16

This part mentions the details of tax deducted at source on the employee’s salary income:

Name and address of the employer

TAN and PAN of the employer

Assessment Year (AY)

Summary of the amount paid/credited to the employee

Date and amount of tax deducted at source on a quarterly basis

Date of tax deposited with the government

Acknowledgement number of TDS on salary

Your employer can generate and download Part A of Form 16 via the TRACES portal. Before issuing this form, your employer should authenticate its contents. In case you change your job or work with more than one employer in a given financial year, each employer will issue a separate Part A of Form 16 for the period of your employment.

Part B of Form 16

An annexure to Part A, Part B of Form 16 includes the following information:

Detailed salary breakup including gross income, house rent allowance, gratuity, leave travel allowance, and leave encashment

Allowances exempt under Section 10

Deductions under Chapter VI-A of the IT Act

Deductions under Section 80 C, 80 CCC, 80 CCD

Deductions under sections 80D, 80E, 80G, deductions for disability, and others

Net taxable salary

Education Cess and surcharge, if any

Rebates under Section 87, 89

Total tax payable

Tax deducted

Balance tax payable or refund

In case you change your job in a financial year, you need not ask for Part B of Form 16 from each of your employers. Requesting the form from either of them is enough.

In addition to the above, Form 16 has specific fields for the following deductions:

Section 80C deductions such as life insurance premium paid and PPF contribution made

Health insurance premium paid under Section 80D

Contribution made to a pension fund under Section 80CCC

Employee’s contribution to a pension scheme under Section 80CCD (1)

Taxpayer’s self-contribution made to a pension scheme under Section 80CCD (1B)

Employer’s contribution made to a pension scheme under Section 80CCD (2)

Interest income on savings account under Section 80TTA

Interest paid on higher education loan under Section 80E

Donations made under Section 80G

Details from Form 16 required to file ITR

You’ll require the following information from Form 16 when filing your ITR for FY 2019–20 (AY 2020–21):

1. TAN and PAN of your employer

2. Name and address of your employer

3. Your name and address

4. Current assessment year

5. Taxable salary

6. TDS deducted by your employer

7. Items exempt under Section 10

8. Breakup of deductions under Section 16

9. Income/loss from house property offered for TDS

10. Income under the head Other Sources offered for TDS

11. Breakup of deductions under Section 80C

12. Aggregate of deductions under Section 80C

13. Tax payable or refund due

Continue to read about Form 16A and Form 16B and FAQs on the topic you can’t miss here.

[happydonate]

Get 80% Tax Exemption by Donation with Happy Soul NGO

Happy Soul World - This Charity is the best charity in India. It’s Help Those Who Have No Hope. Happy Soul Charity Gives Tax Benefits to Donors. Get an 80% tax exemption by donating

Happy Soul NGO is the such a Grate NGO in Indian, that helping those have no hope after death. our distribute your contribution with our Happy Soul World NGO. So that we can help more need people. Contact Us for Donation

Happy Soul World

Happy Soul Foundation

Happy Soul NGO

Happy Soul Tax Benefits

Happy Soul Donation

Search On Google for Happy Soul NGO - Donation For NGO Organization For Tax Benefits, Tax Exemption by Donating, How to Get Tax Exemption, donation to NGO tax exemption, How to Achieve Tax Exemption, charity Organization, Tax Benefits, 80g Tax Benefits, Indian Charity, Get 80% tax exemption by donate

[ijaws]

Here is the main issue when it comes to the left. They think with their hearts too much. While that definitely isn't a bad thing, it seriously leads to illogical idealism.

Mass Shootings? Must be the guns that are bad. Ban them all! Save lives! (Despite the fact that if you banned guns or restricted them you'd see an exponential rise in crime and gun crime. That blood would be on the Left's Hand.)

Too much poverty? Raise EVERYONE'S minimum wage!!! No one will have to struggle anymore. (Despite the fact that inflation is literally a basic economic concept that even the dumbest of us can comprehend. Food, water, cost of living, and everything else would simply raise how much their products cost if their labor gets an increase in pay. This means essentially everything will LITERALLY stay the same.)

Health Care is too expensive? Let the Government TAKE OVER the medical industry and standardize EVERYTHING! (Which brings us back to the similar issue of inflation, but in terms of medical care. You'll nuke hundreds of thousands of medical workers out of work as their companies go belly up while the middle class is taxed into oblivion to pay for everyone's healthcare. The government, since they'd control the medical field, would have full riegn to deny you service or control what type of service you can have. You aren't paying for it... why should you get the choice?)

Kids in cages!? Cops shooting everyone?! It's on CNNMBCANCUFGLEwashingtonpostbuzzfeedtmz- so it MUST be true! (The Left is notorious for lying about the Right. They take pictures of kids 'in cages,' record and crop out a 30 minute long cop video only to show 30 seconds of the video to make it seem like the individual, 'Didn do nuffin'!!!!', and constaly LIE about the Right's legislation... Classic fearmongering. It's even worse when you read the legislation the story is about and it literally has NOTHING to do with anything about what was in the title of the story. Don't get me wrong, The Right does this too, but this is a MAJOR problem from the left. Like. a HUGE ass problem. They takr everything at face value. E.V.E.R.T.H.I.N.G.)

A person is making a lot of money!!! THEY DON'T NEED ALL THAT SHIT! THEY SHOULD GIVE SOME OF THAT TO OTHER PEOPLE WHI ACTUALLY NEED IT! (Despite that a majority of ALL cherity money that is donated is by the rich, and studies have proven it isn't for tax exemptions and so on. Many rich individuals do it because they feel that they should be belping people with hoe much they've been gifted in life.)

The CEO makes, like, a billion times more than I do! That's not fucking fair! (Despite the fact that they may have been the one that created the company from scratch, invested their own money, took their own personal risks and put everything in the line only to come out on top. If they weren't, CEOs tend to be some of the most intelligent people you'll meet (Which most of them Earned from classes they took), they are CONSTANTLY working around 80 hours a week as their job as CEO doesn't stop after they 'get off work,' and the responsibility the CEO has is beyond what normal workers can imagine. Then there's the international companies with the travelling and so on.)

With all this being said, just because you're very subjective and emotional doesn't mean that the other side is an objective robotic entitiy. They see value in different ways and are more so out for themselves (as a free country is meant to be about... Depending on YOURSELF.) and their family. They respect the law because they know that the offenders are completely and are 100% responsible for their own actions. No one is forcing Black People to commit Crime. People who cross borders without proper identification and paperwork are illegally cheating the system. They do this knowing that they can become citizens. Instead they try to sneak in with their kids, who I 100% blame the parents for, and when they're caught people assume that we are supposed to simply let them go? Why? They are cheating a system in which numerous legal immigrants have gone through hell to go through.... but sure. Let them all in with open borders...

Omg ICE IS SUCH A TERRIBLE, TERRORISTIC, ENTITY!!! (ICE is LITERALLY gathering I.L.L.E.G.A.L. IMMIGRANTS. If you are NOT I.L.L.E.G.A.L. you have nothing to worry about.) They TEAR APART FAMILIES AND- (Those I.L.L.E.G.A.L. individuals KNOW they are doing something against the law. They KNOWINGLY put their own family at risk for seperation by being in America illegaly. That is 100% the I.L.L.E.G.A.L. individual's fault. You CANNOT blame the government for ENFORCING BORDER LAWS when they LITERALLY have a Legal System in which Immigrants can earn American Citizenship and be legal individuals.) THEY SERERATE CHILDREN AND PUT THEM IN CAGES! (They really don't... just fact check it. They do seperate families, but, again, if you actually do some reading that isn't buzzfeed, washington post, or TMZ or whatever, you'll learn that. there is legitimate reaskns as for seperation.)

One interesting though also is that if Human Life has intrinsic value and people would do whatever they could to save said human lives.... Why are they pro-choice. That is a human life with the potential to change world. Oh... they're inconvenient and unwanted...? I guess Human Life DOESN'T have intrinsic value......... right...?

Alright, I'm done for now. If you wanna chat, we can, but I just wanted to bring up a few things and flaws in their thinking.... Being emotional and subjective is fine... being OVERLY emotional and subjective is dangerous...

stupid leftists and their belief in *checks notes* the intrinsic value of human life

[ultravickyblog]

Important Points To Consider When Making A Donation In California

California is home to nearly one-eighth of all registered charities in the United States. Currently, there are more than 90,000 charities registered in the golden state, making it an important sector of the economy. Some nonprofit organizations receive grants from the government, but more than 80% of the money received by charities comes from individual donors.

Persuasions to donate can easily tug at your heartstrings. In most cases, your donation will be used for great causes, however, there are exceptions. Giving Center, an IRS registered 501 © (3) nonprofit organization, would like to remind donors that it is important to take the time to learn more about the charity you will be donating to, its programs or missions, and how your contributions will be used.

In California, the term “charity” is applied to tax-exempt, nonprofit public benefit corporations. These organizations have been granted federal and state tax exemptions, has registered to do business in California and is registered with the Attorney General’s Registry of Charitable Trusts (Registry). This means:

Exemption from both federal and state taxes. Charitable organizations typically are exempted from tax under the IRS Code section 501(c)(3) and California Revenue and Taxation Code section 23701(d). For this tax exemption, a charity must be operated exclusively for religious, charitable, scientific, and testing for public safety, literary, or educational purposes. Tax laws allow donations to 501(c )(3) organizations to become tax deductions for that same tax year.

Registered to do business in California. Charities are usually incorporated as public benefit corporations through the Secretary of State. If they are incorporated in another state, they must register with the Secretary of State in order to be able to accept donations in California. You are able to check the status of a charity in California on the Secretary of State web site http://www.ss.ca.gov/business/corp/corporate.htm

Registered with the Attorney General’s Registry of Charitable Trusts. A charity has to register within 30 days after receiving any type of donated contributions. The Attorney General’s web site has a helpful searchable database of currently registered charities.

Here are some important things to consider before making a donation:

Getting involved with charities in your community and supporting their programs. Working with local charities helps provide first-hand knowledge about its programs and the ways they benefit the community. Be sure to ask about the specific ways a charity is benefiting those in need.

If you are being solicited by a charity, learn about the organization, its activities, and fundraising practices before making a donation.

Ask if the solicitor is working for a commercial fundraiser and if they are being paid to solicit. By law, the commercial fundraiser must tell you that the solicitation is being conducted by a commercial fundraiser. They must also tell you the name the fundraiser is registered with.

Ask what percentage of the donations/proceeds being raised is paying for the fundraising expenses.

Ask how your donation will be used for the programs you want to support and how much will cover the charity’s administrative/fundraising costs. Charities do not have a set requirement that limits the percentage of revenue that can be spent on fundraising or administrative costs.

Ask for the charity’s name, address, telephone number, and proof of exempt status.

Be wary. If being solicited, be sure to call the charity directly. If the charity has not given permission to solicitors to use its name, you may be dealing with a fraudulent solicitor.

Watch out for questionable organizations with copycat or similar sounding names.

Know the difference between “tax-exempt” and “tax-deductible.” Charitable donations made to tax-exempt organizations do not always mean the donation is tax-deductible. Tax-exempt status simply means the organization does not have to pay federal taxes. For example, political campaign committees and membership organizations can be tax-exempt under Internal Revenue Code section 501(c) (4), they do not pay income taxes, however, donations to these types of organizations do not mean tax deductions for you. You may only receive a tax-deduction when making donations to charities or organizations formed under section 501(c)(3) of the Internal Revenue Code.

Avoid cash donations. Instead of giving a cash donation to charity, write out a check. Remember to use the full name of the charity, rather than initials or abbreviations

Do not give out your credit card information to telephone solicitors.

Be cautious of high-pressure solicitors. Do not fill like you have to make a donation if you feel uncomfortable about the pitch or you feel like you are being threatened. Any responsible charities or fundraisers will not pressure a donor to make a donation on the spot. Immediately report any threatening solicitation to the consumer fraud division of your local district attorney's office or law enforcement agency.

Think about the cost when purchasing tickets or merchandise to a “fundraising” event, or when receiving free goods in exchange for a charitable donation. Although sales may be an effective fundraising tool when used by charities, they usually result in less money for the charity than nonsales solicitation. Furthermore, goods and services received for donations are not tax-deductible for donors.

Charities that have gross receipts of $25,000 or more must file a financial accounting each year with the IRS. Charities must state how much money was raised, where funds were spent, and other important information about the charity’s operations in IRS Form 990. All organizations with gross receipts less than $25,000 are placed on “extended reporting” status, this only requires a filing every 10 years.

[incorp-india]

Legal Structure For Carrying Out Charitable Activities

Charity begins at home, and home for some people is not just the family, but their society, their state, their country and the world in which they live. It is said that, the person should not be judged by, what he achieves for himself, but by what he achieves for society at large. In the words of Mr Azim Premji, who is one of the world’s top philanthropists, “You cannot mandate philanthropy. It has to come from within, and when it does, it is deeply satisfying”. Even though Mr Azim Premji was not in favour of mandating philanthropy by way of law, we never the less have one under, The Companies Act, 2013. So, we can do philanthropic activities either when we feel like doing it or when we are mandated by law to do it. In this brief note, we shall guide you as to how one can move forward for carrying out charitable activities, in the best possible structure.

1. Which are the major types of charity?

Charity can be done, either when it is mandated by the law or when one feels like doing it i.e. Suo-moto. Each of the types can be understood as under:

Charity – Suo Moto – We get a lot of things from society and there comes a time, when we feel that we should take a step forward and do something for the society, i.e. people at large. People with similar interest can come together and be a part of the organization and achieve the objective that it sets for oneself.

Charity – Mandated by Law (Corporate Social Responsibility CSR) – As per provisions of Section 135 of the Companies Act, it prescribes 3 conditions and on satisfying any one of the criteria, company is bound to carry out CSR activities:

The company has a net worth of rupees five hundred crores or more, or

turnover of rupees one thousand crores or more or

a net profit of rupees five crores or more during any financial year

The Board of every company that satisfies any of the above conditions shall ensure that the company spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

2. What structure can be used for carrying out Charitable Activities?

Whether one decides Suo-moto or is mandated by law to do some charity, he can do so by one of the two ways:

Each of the two options mentioned herein can be understood as under:

CSR ACTIVITIES CONDUCTED THROUGH SECTION 8 COMPANY Section 8 of the Companies Act 2013, permits a company to register itself as a not- for- profit company with limited liability to its members. Following are the conditions that it must satisfy —

has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;

intends to apply its profits, if any, or other income in promoting its objects;

intends to prohibit the payment of any dividend to its members

CSR ACTIVITIES THROUGH CHARITABLE TRUST A trust can be formed by a founder along with other trustees. A trust deed is to be drafted and duly registered with the registrar of trusts. Since the power to regulate trusts are covered in List – III of Seventh Schedule of the constitution of India, state and centre can both enact laws. In the state of Maharashtra, Maharashtra Public Trust Act, 1950 (Formerly known as Bombay Public Trust Act) applies to public trusts.

To form a charitable trust, it is very important that the objects of the trust must be for the greater good of the public at large. Charitable purpose includes:

Education

Medical relief

Relief of power by or distress

the advancement of any other object of general public utility

Governance of a trust is the responsibility of the trustees. Legal ownership of trust property vests in the trustees.

3. What is the process of formation of the above entities?

INCORPORATION OF SECTION 8 COMPANY

The Company has to first decide the Charitable Object that it intends to achieve; it can either be one or more.

The Company has to decide on the Share Capital with which it will start the Company and the subscribers to such share capital.

The no. of Directors that will be appointed in the said Company.

Application is required to be filed to Central Government for grant of License.

Other formalities with respect to incorporation are similar to that of any other company which would be incorporated under Companies Act, 2013.

INCORPORATION OF CHARITABLE TRUST

Trust Deed is the charter document, through which Trust communicates its objects.

Identifying the author of the Trust and Trustees who shall run the Trust along with their consent letter.

Registration with the Charity Commissioner.

4. What are the advantages with respect to the structure mentioned above?

ADVANTAGES OF SECTION 8 COMPANY ARE AS UNDER

No requirement of minimum paid-up share capital.

Section 149(1) relates to the minimum and a maximum number of directors. A minimum of three directors in the case of the public company and two directors in case of the private company. This section shall not apply to section 8 Company.

No Specific compliance with respect to the appointment of Independent Directors.

It shall hold at least one meeting within every six calendar months.

The bar on taking up the directorship in more than twenty companies has been relaxed in the case of section 8 companies. Therefore, an individual, if he is eligible, can be a director in more than 20 section 8 companies. This restriction, however, continues to stay for other categories of companies.

There is also relaxation with respect to Quorum required for the conduct of the meeting. Wherein a minimum of two members is required.

ADVANTAGES OF CHARITABLE TRUST

Registration of trust as compared to section 8 company requires less time for incorporation and is easier as regards to compliance.

Trustees have complete control over the trust.

There is no statutory requirement to hold the specified number of meetings.

Documentation, filing of returns and other statutory compliances in comparison to that of section 8 company are less.

5. How Income Tax Law applies to Structure chosen for carrying out Charitable Activities?

Under the Income Tax Act, 1961 there is no difference how trust and section 8 Company is taxed. The taxation of the charitable entity is governed by Chapter III of the income tax which includes section 11, 12, 12A, 12AA/12AB and 13. The Government of India has given various exemptions to charitable and religious trust keeping in view the services they render to the nation. Section 11 deals with the taxation of the income from the property held for charitable purposes. As per the said section, if the charitable entity spends more than or equal to 85% of its total receipts towards its object in India, then there is no tax on balance 15%. It is worthwhile to note that, the amount spend even for the fixed asset of the trust is also eligible to include in 85%.

For registering the Trust or Company first time as Charitable Organization under Income Tax Act, an application has to be before Commissioner of Income Tax (Exemptions) under Form 10A. Commissioner of Income Tax (Exemption), should be satisfied that objects of the trust are charitable in nature, they are not for personal benefits of trustees or directors, an entity has the vision and the same should be coming out from the report reflecting activities which entity will carry out. It can also apply for Certificate under 80-G, wherein donations made to such entity will be Tax deductible.

The exemption is now granted under the Income Tax Act for a period of 5 Years and the certificate has to be renewed every 5 years, by making an application before Commissioner of Income Tax – (Exemption).

COMPARATIVE ANALYSIS BETWEEN SECTION 8 COMPANY AND CHARITABLE TRUST

HEADSECTION 8 COMPANYCHARITABLE TRUST

1. Applicable LawCompanies Act 2013Maharashtra Public Trust, Act 1950

2. Time Required for Incorporation15-20 days8-15 days

3. Registering AuthorityRegistrar of CompanySub-registrar of Registration/Charity Commissioner

4. Name ApprovalApplication has to be made to ROCNo such requirement of approval

5. Minimum members/directorsAt least 2 MembersAt least 2 Trustees

5. Minimum members/directorsAt least 2 MembersAt least 2 Trustees

6. Governing StructureGeneral Body of Directors/ Board of DirectorsGeneral Body/ Board of Trustees

7. Voting RightsVoting Rights vary on the basis of the shareholding.All trustees have equal voting rights.

8. FilingCompany has to submit Annual Audited Accounts and Returns filed by it to the ROC.No documents are required to be submitted to any Registering Authority. Except for submission of Accounts.

9. Meetings4 Board meetings and 1 Annual General Meeting have to be carried out in a year.There is no such provision.

10. Transfer of directorship/membershipDirectorship or membership can be transferred.Trusteeship cannot be transferred.

11. Payment to directors/trusteesGeneral Body of the company can approve to get payment.Trustees cannot receive payment. But if the provision is there in the trust deed than trustees can receive professional fees.

12. Investment by promoters/trusteesNo requirement of minimum capital.No requirement of minimum capital.

13. Liabilities of Directors/trusteesDirectors can be held liable for the acts done by them or for their negligence and the onus is on directors to prove that they are innocent.Trustees can be held liable for the acts done by them or for their negligence and the onus is on charity commissioner to prove that the trustees are guilty.

How can InCorp help you?

Our team at InCorp can not only help you choose the correct legal structure for carrying out charitable activities, but also assist you in complying with all the applicable laws and framework thereafter. We further ensure that while doing charity, organizations are not stuck in the clutches of various legal hurdles and we make it our responsibility to keep charitable organizations compliant of all laws at all points in time.