Tax Exemption Donation Faqs
• Income Tax Exemption in India: How does it work?
Tax exemption is the eduction allowed by law that lowers the taxable income. You can avail wholesome relief from tax or decreased tax rates or tax will be for on a certain portion, as per various provisions of the Income tax for different types of income subject to prescribed conditions. Tax exemption is therefore a mandatory exemption to a general rule rather than the absence of taxation in certain conditions. Tax exemptions are given to boost certain economic activities and to promote socially beneficial activities.
• What is Section 80G of income tax act?
Section 80G of the Income tax allows the assessee to claim deduction from his taxable income for the donation assessee has made to charitable entities who are approved by IT dept.
Akshaya Patra has approval of IT dept under above section.
• What Tax exemption benefit do I get?
Donationsabove Rs 500 to Akshaya Patra will be eligible for 50% deduction from taxable income under Section 80G of Income Tax Act. By contributing to Akshaya Patra, you will help in feeding school children and also help yourselves with tax deduction benefit.
The benefit is availed by reducing 50% of the donated amount from your taxable salary. For instance, if your taxable income per year is Rs 200,000 and you make a donation of Rs 5,000 then your net taxable income will become Rs 197,500 ( i.e., Rs.200,000 – 50% of your donation i.e., Rs. 5000) . Your tax will now be calculated on this reduced taxable income basis the prevailing tax rates.
• What is the minimum amount that needs to be donated to get a tax exemption?
To take care of documentation expenses , Akshaya Patra requests Aa minimum of Rs 500 be donated to avail tax exemption under IT sec 80 G.
• Do you issue Tax receipts? How long does it take for them to reach us?
Yes, you can expect your receipts within 10 days after you have made the donation.
• Is there tax exemptions on cash donations as well?
Cash donations above Rs.2,000 is not applicable for 80G certificates.
• When can I get a tax exemption certificate?
We generate the tax certificate within 6 days from the date of contribution made through online donations. Including the courier process it takes 10 days for the exemption certificate to reach you. If you contribute offline it takes 15 to 20 days.
From Financial year 2021 -22, under latest IT rules, Akshaya Patra would be required to upload all the donation details to income tax website under form 10 BD and generate a certificate as per form 10BE. Akshaya Patra would generate this certificate periodically and email to donors.
• What if the Tax receipt is misplaced?
We may not be able to provide you a duplicate receipt. But we can send you the Income Tax Exemption certificate copy.
• I am an NRI. Will I get tax exemption on my donation?
NRI (Non-Resident Indian) donors, who are Indian citizens, holding an Indian passport are eligible to tax exemption under section 80 G of the Income Tax Act. Don’t forget to mention your Indian PAN Card Number in the online donation form to avail the tax benefits. You can also write to [email protected] for any further queries.
• If I am a resident of the U.S. subject to US income tax will I be eligible for tax exemption?
As a person subject to US Income Tax, you can avail of tax exemption under US Laws, by making a donation to our sister Foundation AKSHAYA PATRA FOUNDATION (USA)on https://www.akshayapatrausa.org/donate which is a legally registered section 501 ( c) (3) entity under US Laws.
• If I am a resident of the U.K. and subject to UK income tax will I be eligible for tax exemption?
As a resident of the U.K. subject to UK Income tax, you can avail of tax exemption by making a donation to our sister foundation The Akshaya Patra Foundation UK on https://tapf.org.uk/donate Which is a legally registered charity under UK Laws.