Two-Sided Benefit
Millennium Post Delhi|September 10, 2019
Two-Sided Benefit
Double deduction on donations to central funds will benefit government and businesses with former getting more funds and latter becoming socially responsible entities

The economic survey of 2019-20 has called for extensive use of behavioural economics. A key area where this can work wonders is taxation. Several broad funds of the Central Government should be created such as the National Defence Fund, the National Education Fund, etc. A 200 per cent deduction should be given for donations to these funds.

This system has immense benefits for both business and government. The business can enhance its reputation by saying “We donated for our soldiers” by contributing to the National Defence Fund. The government gets Rs 50 instead of Rs 35. The business owner can support the cause he believes in, at a very low cost. A donation of Rs 50 requires an additional payment of just Rs 15. Unlike tax, there is a positive feeling attached in paying this 50. The business owner can get respect in his social group by saying “I donated Rs 50 lakh for the education of poor children” if he donates to the National Education Fund. Nobody will care if he says “I paid Rs 35 lakhs in income tax” because his friends will say, “obviously you did, otherwise the government would arrest you”.’


You can read up to 3 premium stories before you subscribe to Magzter GOLD

Log in, if you are already a subscriber


Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines


September 10, 2019