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.