{"id":163692,"date":"2022-01-21T20:48:33","date_gmt":"2022-01-21T15:18:33","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=163692"},"modified":"2022-01-22T10:49:57","modified_gmt":"2022-01-22T05:19:57","slug":"new-tax-regime-disincentivizes-charity-donations-says-study","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/new-tax-regime-disincentivizes-charity-donations-says-study\/","title":{"rendered":"New tax regime disincentivizes charity donations, says study"},"content":{"rendered":"\n
What is the news?<\/span><\/b>\u00a0<\/span><\/h5>\n

Budget of 2020 option introduced an optional tax regime for personal income tax.<\/span>\u00a0<\/span><\/p>\n

What was this optional tax regime?<\/span><\/b>\u00a0<\/span><\/h5>\n

Under this a taxpayer can choose between\u00a0<\/span>two structures<\/span><\/b>. One structure, the older one, has higher rates and\u00a0incentivizes\u00a0philanthropic giving. The other one has lower rates but does not\u00a0incentivize<\/span>\u00a0donations.<\/span>\u00a0<\/span><\/p>\n

These changes were\u00a0analyzed\u00a0in a study conducted by Ashoka University and Centre for Budget and Governance Accountability (CBGA).\u00a0<\/span>\u00a0<\/span><\/p>\n

What are the issues highlighted by the study?<\/span><\/b>\u00a0<\/span><\/h5>\n

Study concludes that these changes, coupled with the lowering of rates of personal income tax and corporate income tax over time, have\u00a0<\/span>disincentivised\u00a0donations for charity.<\/span><\/b>\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Note<\/span><\/i>-Section\u00a0<\/span>80G of the Income Tax Act<\/span><\/b>\u00a0provides\u00a0<\/span>deduction from one\u2019s income<\/span><\/b>\u00a0for donating to specified charitable institutions.<\/span>\u00a0<\/span><\/p>\n

What needs to be done?<\/span><\/b>\u00a0<\/span><\/h5>\n

India should reintroduce inheritance tax and wealth\u00a0<\/span>tax.<\/span>\u00a0<\/span><\/p>\n

This will\u00a0<\/span>generate additional tax revenue<\/span><\/b>\u00a0and will also\u00a0<\/span>increase the resources of the charitable sector<\/span><\/b>\u00a0<\/span><\/p>\n

These can act as one of the most\u00a0<\/span>effective policy instruments against inequality<\/span><\/b>\u00a0specially in the pandemic period.<\/span>\u00a0<\/span><\/p>\n

Source<\/span><\/b>– This post is based on the article \u201c<\/span>New tax regime disincentivizes charity donations, says study<\/span><\/b>\u201d published in\u00a0<\/span>Business standard<\/span><\/b>\u00a0on 21st Jan 2022.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

What is the news?\u00a0 Budget of 2020 option introduced an optional tax regime for personal income tax.\u00a0 What was this optional tax regime?\u00a0 Under this a taxpayer can choose between\u00a0two structures. One structure, the older one, has higher rates and\u00a0incentivizes\u00a0philanthropic giving. The other one has lower rates but does not\u00a0incentivize\u00a0donations.\u00a0 These changes were\u00a0analyzed\u00a0in a study… Continue reading New tax regime disincentivizes charity donations, says study<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[10503],"class_list":["post-163692","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-business-standard","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1701147218},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/163692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=163692"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/163692\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=163692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=163692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=163692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}