Tax Rebate under 35AC to NGOs was an opportunity and an incentives to people who would donate to NGOs in India. The latest move of the government to discontinue this scheme is a depreciation in this regard, said the Executive Director of Caritas India – Fr. Frederick D’Souza.

Although the grant of 35AC to NGOs were limited only to selected priority projects and for a limited timeline, it certainly was an incentive tool for NGOs which now stands lost, he confirmed.
Unlike 80G, which allows 50 percent tax rebate to a donor and which is given to any registered NGO, he said the 35AC was allotted to only selected few on special grounds.

Caritas India once had a research project with 35AC rebate. There are no running projects presently, Fr. D’Souza said.

He however sounded optimistic that the move would not affect philanthropists who value and understand the ‘act of giving’ for needs arising out of humanitarian concerns – whether or not any incentive is attached to it. He also lauded the dawn of the CSR Act as a newer and bigger avenue in support of the works taken up by NGOs.

Fund Leverage

Speaking categorically, he said the 100 percent of the fund mobilized by Caritas benefits the poor by way of empowering them to access optimal government facilities and resources under schemes like NREGA, Indira Awas, Swatch Bharat and many more.
In the year 2015-16, resources worth at least 2.5 crore were availed to benefit the economically weaker section through NREGA.

In Amravati district of Maharashtra alone, over 6.6 thousand people could access over 8.7 human work days under NREGA due to Caritas project.

Ten project villages in Jharkhand 56 percent of the families could avail a NREGA job card with a minimum of 40 days’ work, with timely payment.

In Chattissgarh, nearly 2000 toilets were constructed under Swatch Bharat Abhiyan.

Response: Union Budget 2016-17

He welcomed the Finance Minister Arun Jaitley’s statement from the union budget today “My approach in preparing the budget is to spend more on rural areas, infrastructure and poverty alleviation…”

“Caritas India share the same vision and mission in light of the above statement.” reiterated Fr. Frederick. Our work speaks for us and our donors enjoy full satisfaction. I am sure that they will continue to support us whether or not 35AC stays or discontinues, he said.