Respected finance minister Nirmala Sitharaman
I am happy that finally there will be changes in the Income Tax Act 1961.I do feel higher social welfare spending will be drag on government finances.
I want to bring forth to your notice two sections in Income Tax which needs to be revamped in this era of digital transformation.80 G and80GGA
.Both sections had been neglected all these years but the right changes and right sub sections will be huge positive impact for the Indian economy.
In school and college we use to take part in charitable causes by collecting huge sums for cancer patients,leprosy patient etc. At that time, the institute showed us through pamphlets the estimated amount required and we tried our best to collect and handover more than what they needed.
I feel after 2 decades in the present scenario, we have more than 6 billion people who have voted.554530 of the countries597608 villages have access to mobile services. Mobile internet is cheapest in India as compared to many developing developed countries.
Bain &co,Boston,Massachusetts said in March 2019, India needs an additional 4.2 lakh crore annually to achieve five(zero hunger,Good health,quality education,gender equality,clean water and sanitation.)
of its 17sustainable development goals(SDG) by 2030. The report further stated'With a growing economy &rising wealth,the role of domestic private philanthropy becomes increasingly important regardless of how foreign contributions evolve.Both domestic corporations and Indian ultra high net worth individuals need to enhance the level and nature of their giving.' If I only take into consideration that per day 61.30 crore voters will donate only 1 rupee for a specific social cause, the amount comes to 61.30 cr.
Robert F Smith paid off all student loans amounting to$40 million for the 400 persons graduating class at Atlanta, Morehouse College .What Robert F Smith did we can’t do but we billion Indians together can achieve much more.
With the demonetization, Right To Information act in place this is actually the right time
To start a separate app or website for Donate India or embed the same in tax related app or website state wise.
Nowadays people are accessing online shopping sites for books,clothes,food,travel,investments like Insurance,mutual fund,equities .Why then donations be left behind?
We billion citizens of India support hundred different social causes but we can’t say whether the amount has been received by the right person or beneficiary .We Indians expect transparency and accountability from our government to help us for the same. Working
1)Those interested to donate must register themselves as individual or company or Nri or foreign national
2)When a person donates, they must receive an sms /email for the same. There should be an arrangement for showing consolidated details of amount donated from January 2019 toDecember 2019
Or April 2018 to March 2019.
3)This move will create jobs across state across different sectors mainly csr executive,chartered accountant, cost accountant,ecommerce executives etc.
4) This app should be developed in Hindi and English.
5) This Donate India app will be path breaking digital innovation in the financial system not only for each state of India but other states of the world.
6)All entities whether public or private and Ngo must register themselves .They must show till date how much grants they have recieved and how have they utilized the same .They must quote an estimate amount of fund required in future for the social cause they are working for.
7) Timely audit is needed to be carried out. All expenditures related to the cause from the public fund should be utilized appropriately. Reports should be presented to the chief minister, finance minister etc to see whether individual state or union territory has disbursed the funds appropriately.
8) This move will bring transparency in CSR spending by India Inc .They can choose the social cause across different states.
9)The person must be allowed to use debit card and nominate his bonds,lic policy,mutual fund,fixed deposit, shares for the social cause he /she supports.
10)Persons of all age group will be able to access the DONATE INDIA APP from their confined space.
11)An individual knowing about his illness with or without nominee might distribute his funds among different social causes enlisted through this app. A.National/State Illness Assistance Fund -
It must include names of all public and private hospitals,nursing homes,childrens hospital and Ngoc working to eradicate an illness .All heart hospitals,eye hospitals,tb hospital,cancer hospital,Aids
hospital,burn victim hospital,leprosy centres and organ donation .
They must provide an estimate of funds required by the hospital
Place all rural hospital in the top slot which require immediate fund in each district of the state .Then allNGOs in rural areas.Lastly all urban hospital B.National /State Blood Transfusion Council-
List all blood banks in every state C.National Defence Fund -no changes
D.Chief Minister Relief fund -
All disasters must be separately mentioned state wise
Kerala flood
Chennai flood
Kolhapur flood
Gujarat flood
E.National /State Foundation for Communal Harmony
List all churches, orphanages, old age homes and adoption centers of Christians
List all masjids,orphanages,old age homes and adoption centers of muslims
List all gurudwaras,orphanages,old age homes and adoption centre of Sikh
List all mandirs,orphanages,old age homes and adoption centre of Hindus
Basically all religion with their sacred place,orphanages,old age homes and adoption centre must be registered.
F.National /State Trust for welfare of persons with Autism,Cerebal Palsy,Mental Retardation& Multiple Disability
List all entities and ngos working for deaf,dumb,blind.
List all mental hospital
List all handicap or special institutes or ngos working for them
G Approved School,College,University,Educational institution of national eminence
List all school,colleges,university statewise
H.National /state Sports Fund
List all sports institute of each state
Indian Olympic Association
I.National /State Cultural Fund
List all cultural societies,
Art centre,
Exhibition centre,
Museum,
Monuments and
Heritage sites.
J.National /state Environment Fund New
List all entities & ngos working for air pollution
List all entities & ngos working for noise pollution
List all entities & ngos working for water pollution for example Clean Ganga fund,Clean beaches
List all entities & ngos working for birds n animals
List all forest,wildlife,parks,sanctuaries and zoo
K.National fund for Control of Drug Abuse.
List all rehabilitation centre in every state
L.Prime Minister Relief Fund
List all accident by air,rail,road and water.
List all transit camps,refugee camp,illegal migrants.
Cyclones
Epidemics
M.National /state Childrens Fund
List all entities & ngos working for street children, missing childrens, child n women trafficking
List all rehabilitation centres for children n women
.
N.National /state Agricultural fund NEW
Entities or ngo working for problems faced by farmers such as irrigation facilities,seed requirement etc O.The Army Central Welfare Fund/the Indian Naval Benevolent Fund,/the Airforce Central Welfare Fund. P. National / state fund for the medical relief to the poor
List all primary healthcare centre statewise
List all community healthcare centre Q.Fund for Technology Development and Application .
Policeforce 80gga
1)Fund for Scientific Research
List all entities engaged in scientific research 2)Fund for Rural Development
List all rural electrification required in each state
List all road networks in each state 3)National Urban Poverty Eradication Fund
List all entities & ngos working for food distribution
Tribal schemes
Ngos working for Transgender 4)Donations made towards political parties & electoral trust.
I can't gauge the limit for deduction under 80 G or 80 GGA. Only you along with your team after careful analysis of all donations for the past 58 yrs can decide .
I have suggested some social causes under different sectors as per my knowlegde .only you along with your team can make the right changes wherever required.I hope this step will to some extent deal with the financial sector stress.
Lastly this move will transform electoral democracy into a participatory democracy.
