Income tax benefits for yoga practitioners in India
What's the story
In India, yoga is not just a form of exercise but a tradition that dates back thousands of years.
Recognizing its importance, the Indian government offers various income tax benefits to promote yoga practice.
This article explores the major clauses and sections of the Income Tax Act that provide financial incentives for individuals and organizations involved in yoga.
Donation benefits
Exemption under Section 80G
Donations to institutions promoting yoga are tax deductible under Section 80G of the Income Tax Act.
Individuals can claim a deduction of up to 50% on donations made to such institutions, with no maximum limit.
This provision fosters financial support for yoga institutions, helping to promote and preserve this ancient practice throughout India.
Tax exemption for institutions
Special status under Section 10(23C)
Yoga institutions registered as charitable trusts or societies can enjoy tax exemption under Section 10(23C).
They need to be engaged exclusively in educational activities or relief work, which includes promotion of yoga.
This exemption allows them to dedicate more resources toward promoting yoga awareness and training, free from the burden of tax liabilities.
Encouragement for corporate sponsorship
Deduction under Section 80GGC
Companies that sponsor yoga events or activities will now be eligible for deductions under Section 80GGC for their donations.
This initiative aims to encourage corporate entities to contribute to health and wellness initiatives, including yoga.
In turn, this fosters a healthier society.
This provision incentivizes businesses to invest in the well-being of their communities through yoga.
Registration advantage for NGOs
Benefit under Section 12AA
Nonprofits dedicated to yoga can apply under Section 12AA to become a registered, tax-exempt entity.
This greatly reduces their financial obligations, freeing them up to focus on sharing the wisdom of yoga without unnecessary limitations.
This benefit allows these organizations to dedicate their resources to the important work of educating and advocating for yoga.