The Covid-19 pandemic has made the whole world shiver with fear. India as a worst-hit country is trying its best to deal with the Second wave of this trouble. The recent pics from Taiwan with empty shelves in supermarket have highlighted that people are hurrying to gather resources around the world to deal with the second wave of the pandemic. But, in India the situation is a bit different this time. The people did not try to pileup necessities as much as they did last time during first wave. On the contrary our people can be seen liberally donating and taking an active part in assisting in charity in the form of services, be it helping for conducting the last rites of the individuals, providing free food services for the isolated and under privileged people, plasma donations for the needy and sick people in the hospitals, arranging oxygen, organizing langars, setting up of temporary hospital beds and mobilizing donations of funds for the purchase of medical equipments, medicines, oxygen concentrators, cylinders, masks etc. It is unfortunate that some unscrupulous persons indulged in black-marketing and hoarding of life saving medicines but the timely intervention by the administration and the warnings issued by the Courts helped in curbing and stopping these unlawful and inhumane activities.
Laws regarding Donations
In India, various laws govern the donations and charity. The Companies, trusts and societies receiving donations from public for the charity purposes need to be registered under the Companies Act, 2013, Indian Trust Act 1882, Societies Registration Act, 1860 respectively. The registered organizations need to get their accounts audited annually and have to file tax returns to ensure their accountability. These organizations would be exempt from payment of tax if registered under Section 80G, 12A of Income Tax Act. But, the private trusts or societies set up for the benefits of a particular community or religion are not exempt from the payment of Income tax. Individuals making donation to the NGO’s or the government for public welfare also get the deductions in the income tax liability upto a certain limit. A certificate is granted to the donor by the Organisations under Section 80G or Section 35AC to claim the deduction. However, it is to be noted that not all kinds of donations are eligible for deduction and in case of donation in cash, the deduction can only be claimed upto Rs. 2000; hence the donation through cheque, draft or any other mode is better where donation amount is more than Rs. 2000.In this way, making donations turns out to be beneficial for the donor as well. The Receipt of Foreign aid in the form of funds is governed by the provisions of Foreign Contribution (Regulation) Act, 2010 and the guidelines issued by RBI time to time.
The Companies Act, 2013 made it mandatory for the Corporate houses having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or net profit of Rs. 5 crore during any financial year to donate or use the 2% of their net profit every year for the public welfare of the society under Corporate Social Responsibility to promote philanthropy.
Section 18 of the Drugs and Cosmetics Act, 1940 provides that no person shall himself or by any other person on his behalf, stock or distribute medicines without license issued under this Act. Hence, medicines cannot be distributed to the general public for the purpose of the charity unless the person distributing the medicines has the authority or the license to do so under this Act. The latest case of MP Gautam Gambhir who tried to help public with the medicines is still under consideration by Delhi High Court.
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