Online crowdfunding platforms have emerged as a winner over the past few years. As the world was struggling through the pandemic, these crowdfunding platforms helped many individuals through trying times by providing the required monetary support. Money plays an important role in everyone’s lives, especially the less fortunate. Even in times of need, their inability to save money in taxes On Crowdfunding can cost them their lives or the lives of their near and dear ones. In a developing country like India, such phenomena are commonly seen.
One of the best ways to tackle such a problem is by crowdfunding. Crowdfunding has gained a lot of importance and popularity in recent times. It has helped save many lives during the pandemic and continues to be a ray of hope in the despondent lives of many across the country. Ketto has been the flag bearer of online fundraising in India. You can also be a part of this community and make someone’s life better by contributing a small amount. You will not only be eligible to contribute to a noble cause but you can also enjoy several tax reductions.
What is Online Crowdfunding?
Crowdfunding refers to collecting funds from individuals to help a common cause. The cause can be medical, cultural, educational, or personal. The funds are collected for an individual who fails to meet his or her needs in time of a crisis or emergency.
For instance, if your best friend meets with an accident, you can set up a fundraiser on Ketto to help him cope with medical expenses. You can ask your friends, family, colleagues, and classmates to contribute to the cause and help your friend. You can also ask them to share it in their inner circle to gain maximum donations. The contributions will support your friend and their family as they deal with such a difficult time in life. All this takes place over an online platform like Ketto. This is online crowdfunding.
What are the Taxes On Crowdfunding Laws Related to Fundraising in India?
As mentioned earlier, it is noteworthy that whenever you donate, you not only take a step towards making this world a better place, but you are also eligible for income tax benefits. Whenever you donate to a fundraiser in India, you are eligible to enjoy a significant reduction in your income tax. If you’re contributing to a registered non-profit organisation in India, you can gain as much as a cent per cent reduction in your income taxes.
A non-profit organisation that has a valid 80G certification to its name qualifies under this rule. Any such recognised non-profit organisation can help you get a 50-100% reduction in your annual income tax returns. This will help you save some money while contributing to a noble cause. You need to always check for the charitable trust you are donating to. Some institutes also allow reductions in income tax without any upper limit.
However, not all non-profit organisations in India have the 80G certification. Cross-check this information before you make your donations. Once done, you will get a donation receipt that you can easily attach while you apply for income tax returns.
What are Taxes On Crowdfunding on Ketto?
After your campaign goes live and people have contributed to the cause, you are eligible to withdraw the collected amount from Ketto. It is noteworthy that Ketto has a zero platform fees policy. Apart from the payment gateway charges and some deductions listed, no other additional amount will be charged from your raised amount. However, the amount you receive after the deduction of these charges is eligible for tax in India.
Since this deduction of taxes does not involve Ketto directly, Ketto does not provide any tax-related information. If you want more information about the same, we recommend you consult a professional who will give you better insights.
Any fundraiser with a deduction for Taxes On Crowdfunding will be mentioned on the Ketto website. Whenever you contribute, you will be given an acknowledgement email for the same. If you do not have the specific information in your email, your donation may not be eligible for tax exemption.
How To Download a Donation Receipt for Tax Reduction?
After you have made the payment, you are eligible to download an acknowledgement receipt of the same. You will receive an email stating your contribution. It is also known as the 80G certificate.
You can download it by:
- Sign in to the Ketto account that was used for the donation
- Go to your “Profile” and click on “Donation History’
- You will see an option of “Download 80G”. Click on this
- The certificate will be downloaded in PDF format on your system
This is the tangible of your donation to the online fundraiser on Ketto. You can easily attach this PDF as proof to the government for deductions in your income tax returns.
Ketto has made the whole process of Taxes On Crowdfunding for online crowdfunding easier, better, and more accessible. Ketto has helped save many lives and spread joy during the trying times in our country. It is adamant about carrying out the same mission till time immemorial.
You can also be a part of this history by making any small or big contribution to a cause you feel strongly about. You can avail of the tax deductions as a result of your contribution. Although that serves as a great driving force for your donations, it should not be the prime objective of your contribution. The goal behind every contribution should be to spread joy, kindness, and love in the community and make it a better place to live. Imagine a little boy in a remote village in India going to school because of your contribution. Will that not make you happy?
Sign up on Ketto today and make a change in the world.