Isn't it so charitable? Donations to trusts, aid funds may be affected
With the new personal tax regime, government officials said there will be fewer incentives for people to contribute to the Prime Minister's National Relief Fund or state initiatives such as the CM Kerala Relief Fund for natural disasters such as floods.
In addition, religious trusts such as the Sri Venkateswara Pranandaana Trust of Tirumala Tirupati Devasthanam, the Pandhurpur Devasthan Trust, the Mata Amritandanamayi Trust and others associated with churches and mosques that benefit from the 80G deduction also expect the interest of donors to decrease. There are also thousands of charities and NGOs that work for childcare, cancer and HIV who benefit from deduction.
While the government wants to increase revenue from available spending in the hands of young salaried professionals, it is not exactly an incentive for anyone to become more charitable, said an official at the Karnataka chief secretary's office.
A trustee of the Sri Venkateswara Pranandaana Trust said the measure will be a buffer. The government should encourage good behavior, such as savings or, he said.