Akshaya patra is an NGO in Bangalore working towards eliminating classroom hunger through midday meals. By being a part of this venture by donating to this noble cause one can not only get the satisfaction of doing good but also enjoy tax benefits

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Salaried employees are major contributors to the bucket of taxpayers in a country. Income tax is paid as a part or percentage of the annual income that an individual earns. It is every citizen’s duty to pay his income tax for all the rights he earns in the country while he earns as a salaried employee or as an entrepreneur.

According to the Government of India’s e-Filing portal of the Income Tax Department, there were 8.83-crore taxpayers till 7th September 2021.

The money collected by the tax department is used to provide various facilities for the benefit of the citizens. How do you think the Government of India is able to provide facilities free of cost? For example, public utility services like metro construction, road construction, free health care facilities for the underprivileged, all come from the money that is paid when you pay taxes.

The Government has made various provisions to help its citizens gain tax exemption in India.

Paying tax is inevitable, however making smart investments that will help you save as well, is a smart choice people can opt for.

Tax exemption in India

Depending on the nature of the income, there are various categories for tax exemption in India. The most common of these are: House Rental Allowance (HRA), Education loan, car loan, Leave Travel Allowance (LTA), contribution towards Employee’s Provident Fund (EPF) Scheme, etc.

House Rent Allowance

If you are a salaried employee who lives in a rented house, you stand a chance to get the benefit of HRA. This amount could either be totally or partially exempted from income tax. However, if you are not living in a rented property but claim HRA, this entire amount will be taxable.

Leave Travel Allowance

If you are a salaried employee and your employer has the provision of LTA, you can claim for the exemption of your travel within India under Section 10(5) of the Income Tax Act, 1961. However, tax exemption does not include food expenses, shopping and stay, but, only for travel of the individual, their family including children.

Deductions under section 80C, 80CC and 80CCD (1)

This is by far, the most extensively used option to save tax. To encourage individuals to save and invest in retirements plans, the Indian Government has made provisions for individuals under these sections. These include Life Insurance premium, Equity Linked Savings Scheme (ELSS), Employee Provident Fund (EPF), Contribution to PPF Account, National Pension Scheme, National Saving Certificate (NSC), etc.

NGO donations under section 80G

An individual can get involved in philanthropic donations for tax write off. Charitable organisations give a platform for an individual to engage in humanitarian services as well as to appreciate the noble work by making you eligible for tax exemption too. The deductions under Section 80G of the Income Tax Act of 1961 towards charitable organisations are either eligible for 50% or 100% tax exemption depending on the NGO being supported.

When you contribute by making donations for tax write off, you are not only saving on your taxable income, but you also add goodness in your life for helping people in need. Thousands of not-for-profit organisations receive donations for tax write off, but the help that they provide to the organisation to work towards its cause is often gone unnoticed.

Benefits of making NGO donations

Gives inner satisfaction of helping people
Giving back to society makes an impact
Connects with like-minded people
Saves tax on your contribution
Draws attention to the cause
Helps people in need with what they require

Every little support to people in need gives them relief from their suffering. The Akshaya Patra Foundation is an NGO in India that provides free and unlimited food for education of children coming from challenging socio-economic backgrounds. It has the distinction of being the world’s largest NGO run school lunch programme spread across 60 locations in 14 states and 2 union territories of India.

Akshaya Patra provides nutritious and locally palatable meals to 1.8 million children coming from low-income sections of society.

Akshaya Patra is an NGO known for 21 years of relentless service, financial transparency, and credibility. All your donations above INR 500 made towards this NGO, are eligible for 50% tax exemption under section 80G of the Income Tax Act. You will also get a tax exemption certificate within seven working days with your name and contribution amount. So the next time you plan on making tax saving investment, think of the benefits of donating to NGOs.

Do you reside in Dallas with the hope of buying a new home? Is conventional housing loan expensive? Well! USDA Rural Housing Loan is the best option.

If you live in a rural area, it is the government initiative for rural development. The regular housing loan is costly compared to this loan program.

Hence, don’t worry, even if your income is less moderate. There are specific property and income eligibility. So, let us learn more about the same.

What do you mean by USDA Rural Housing Loans?

USDA Home Loans Dallas is a mortgage guaranteed by the US government. It is applicable if you live in a rural area and have a low household income.

The government support rural development to improve the quality of life. There was the establishment of section 508 in 1949. And it offers less costly finance to purchase a house through 2 programs.

They are section 502 direct loan and section 502 guaranteed loan. Both programs will provide 100% financing to the entitled borrowers.

What are the benefits of USDA Rural Housing loans?

The majority of the housing loan need down payment. And it can vary from 3.5 to 20 % as per the finance option. But, USDA will not permit you to pay any down payment.

The qualification of the borrowers is lenient. In case of more debts, USDA Home Loans Dallas is more forgiving than other loans. You need to spend less amount on Mortgage Insurance.

This loan doesn’t have PMI needs. USDA Home Loans Dallas offers low-interest rates compared to other mortgages. If you buy one, you will save your income money.

What is the property eligibility on USDA Housing loans?

The location of your home needs to be under planned unit development. The property should be inside the rural area nominated for USDA loans eligibility.

Only single-family needs to live but not an apartment building. The maximum price is not qualified, and you need to be eligible for loan repayment.

And it will have an impact on the maximum price. The home needs to meet the requirement of the Department of Housing and Urban Development’s (HUD).

What is the income eligibility on USDA Rural Housing loans?

USDA loans are suitable for people who want to meet their economic needs. To qualify, you need to show your continuous income.

You can also pay mortgage payment in the absence of incident for at least one year as your assets, current income and savings.

The loan mortgage lender will study the debt to income ratio. If it meets the requirements, they will consider you for a USDA loan. For qualification in the income level, it is advisable to have debt below 41% of the income ratio.

What is the process for USDA Rural Housing loans?

Get a pre-approval letter from the USDA housing loan specialist. Get a contract for the sales on the selected home. Read and sign the document to the loan specialist.

There will be an inspection and appraisal of your property. Next, there will be an underwriting process of the documents. You need to send the requested documents to the underwriter.

He will send the documents to the USDA office for approval. Finally, the underwriter will receive the file from USDA stating,” Clear to close”.

If you are planning to invest your money together, you need to make sure that you use a family investment plan. This type of investment strategy is especially important if you want to achieve specific goals together.

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Many couples have difficulty managing their finances together, and it is important that you both know where to invest your money. Luckily, there are many ways to make money work for your family. Using this strategy can make your money work for you.

A family investment plan can help you save money. Some plans are specifically designed to invest in one family’s assets. A family foundation will also support the family members of veterans by investing in maternal health. This means that you will be able to avoid the pitfalls that most families face when investing their money. In addition to this, a family investment plan will help you take advantage of tax benefits and financial planning services that are offered by the government.

There are many benefits to a family investment plan, but there are also certain risks that you should be aware of. In a family investment plan, you will have a voice in how the money is spent. You can be a part of the decision-making process and invest your money to achieve your goals. The family investment plan should include a questionnaire to determine whether or not a family foundation would be beneficial for your family. It should include a questionnaire to determine if the strategy is right for your family.

There are many advantages to a family investment plan. The most obvious advantage is that it will allow you to keep control of your money. As the owners of a family investment company, you have control of the assets. This allows you to avoid the hassle of inheritance tax and still retain control. Another benefit is that a family investment plan is usually less expensive than a family investment company. The money you invest in a family investment will be safe from creditors and tax authorities.

A family investment plan is an investment strategy that allows members to invest in various types of assets. The money is invested in a tax-advantaged investment plan. The money is not taxed, which makes it a great way to save for the future. Those who are worried about taxes should look into a family investment plan. This type of investing strategy allows you to save on taxes while allowing the savings to grow.

A family investment plan can help you invest in a variety of assets. Depending on the size of your family, you can choose to invest in stocks, bonds, and mutual funds. You can even invest in mutual funds and ETFs. By having your own family investment plan, you’ll be able to invest in multiple areas of your life. The more diversification you have, the more options you have for your future. With a family investment plan, you can keep your money in a safe place while you’re still building it.