State aid funds, religious institutions, NGOs bothered by the new tax regime

With the new personal tax regime, government officials say there are now fewer incentives for taxpayers to contribute to state or PM initiatives such as the Kerala CM Relief Fund for natural disasters such as floods.

Religious trusts such as the Sri Venkateswara Pranandaana Trust, the Pandhurpur Devasthan Trust, the Kollur Mookambika Temple, Mata, and trusts associated with churches and mosques that benefit from the 80G deduction will also see a decrease in donor interest.

There are also thousands of charities and NGOs in India that work on child care, cancer and HIV issues that benefit from the 80G deduction. While the government wants to increase revenue from available spending in the hands of young salaried professionals, this budget is not exactly an incentive for someone to become more charitable, said an official at the Karnataka chief secretary's office.

A trustee of the Sri Venkateswara Pranandaana Trust said the government measure will be a buffer. The government should encourage good behavior such as savings or donations, he said. A member of the board of Kanchi Kamakshi Amman Temple said: The government measure was unnecessary. The members did not want to be named.

Live plus The MLA Congress and Karnataka's former IT minister, Priyank Kharge, pointed out that the Karnataka CM Relief Fund played a key role in disaster relief for those affected by the Kodagu floods over the past two years. There could be a reduction in the public contribution to these much-needed funds in the future, he said.

An NGO working in the area of ​​child care in Bangalore said the laws against foreign financing had already entangled some of their projects, and now this could harm them even more. For some of our donors, the main incentive is tax exemption. People even discuss with their CA how much they should give before sending us a check, he said.

Public accountants say the impact would be difficult to quantify. It will depend on how people perceive it. There are many genuine people to whom tax savings are incidental, their main motive is to help others, said Surya Bhatia, a public accountant based in Delhi.

Gopal Srinivasan, president of, who actively participates in temple events in, said: People always want to give back to society in some way. The announcement will not be an impediment for those who support a good cause.