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New tax regime disincentivises charity donations, says study

Ashoka University-CBGA study recommends restoration of inheritance and wealth taxes

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Section 80G of the Income Tax Act provides deduction from one’s income for donating to specified charitable institutions

Indivjal Dhasmana New Delhi
The option of paying income tax at lower rates in lieu of giving up exemptions and deductions has disincentivised donations for charity, a study has said.

The option was given in the Budget of 2020. Ahead of the Budget this year, the study has recommended reintroducing inheritance tax and wealth tax because inequalities have widened due to the pandemic. The study, conducted by the Centre for Social Impact and Philanthropy (CSIP), Ashoka University, and Centre for Budget and Governance Accountability (CBGA), said, “... overall, the tax incentive structure for giving to the charitable sector seems to have become less generous

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First Published: Jan 21 2022 | 6:05 AM IST

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