• What is Income Tax Exemption in India? How does it work?
Tax exemption is the deduction allowed by law that lowers the taxable income. You can gain complete relief from tax or avail decreased tax rates on a certain portion of your income, according to various provisions of the Income Tax Act for different types of income. Tax exemptions are offered to boost certain economic activities and to promote socially beneficial activities.
• How can I save tax by donating to NGO?
Section 80G of the Income Tax Act, 1961 offers tax deductions to the charitable trust as well as the associated donor, provided the NGO is registered under the Act. You can avail the deduction by presenting the receipt of the donation made to the NGO.
• What is Section 80G of the Income Tax Act?
Section 80G of the Income Tax Act allows the assessee to claim deductions from their taxable income for the donation they make to charitable entities that are approved by the Income Tax department.
The Akshaya Patra Foundation has the approval of the Income Tax department under the above section.
• What tax exemption benefit do I get?
Donations above ₹500 to Akshaya Patra will be eligible for a 50% deduction from one’s taxable income under Section 80G of the Income Tax Act. By contributing to Akshaya Patra, you will help feed school children and also benefit yourself with tax deductions.
• What is the minimum amount that needs to be donated to get a tax exemption?
To take care of documentation expenses, Akshaya Patra requests a minimum of ₹500 to be donated to avail tax exemption under Income Tax Section 80G.
• What is the maximum amount for income tax exemption under 80G?
The maximum limit for deduction depends on the category of donation. In some cases, the maximum limit for the deduction is not set; while in some others, 80G deductions can be claimed up to a limit of 10% of the adjusted gross total income of the donor.
• Do you issue tax receipts? How long does it take for them to reach us?
Yes, your tax receipts will be mailed to you within 3 working days of making the donation.
Apart from the tax receipts, you will receive the tax exemption certificate via email within 5 days upon your donation.
• Is there a tax exemption on cash donations as well?
Cash donations above ₹2,000 are not applicable for 80G certificates.
• When can I get a tax exemption certificate?
We at Akshaya Patra generate the tax certificate within 5 days from the date of making the online contribution.
From the financial year 2021-22, under the latest Income Tax rules, Akshaya Patra would be required to upload all the donation details to the Income Tax website under form 10BD and generate a certificate as per form 10BE. Akshaya Patra would generate this certificate periodically and send an email to the donors.
• What if the tax receipt is misplaced?
We may not be able to provide you with a duplicate receipt. But we can send you a copy of the Income Tax exemption certificate along with the soft copy of the receipt for the same financial year as the donation. Write an email to us at [email protected].
• I am an NRI. Will I get a tax exemption on my donation?
NRI (Non-Resident Indian) donors, who are Indian citizens holding an Indian passport, are eligible for tax exemption under Section 80G of the Income Tax Act. Don’t forget to mention your Indian PAN Card Number on 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 tax exemption under US Laws, by donating to our sister Foundation The 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 UK subject to UK Income Tax, you can avail tax exemption by donating to our sister Foundation The Akshaya Patra Foundation (UK) on https://tapf.org.uk/donate Which is a legally registered charity under UK Laws.
• What are the certificates required to claim tax exemption under Section 80G?
Taxpayers should have all the following documents to claim deductions under Section 80G.
• The receipt of donations.
• Photocopies of 80G Certificate.
• Registration number of the charitable trust.
• Can I claim tax exemption under Section 80G through my employer?
Yes, you can claim a deduction under Section 80G through your employer. For that, you will need a certificate from your employer stating that such a donation has been made from your salary.
• Does Akshaya Patra accept in-kind donations?
We, at Akshaya Patra, do not accept in-kind donations but you can volunteer to help with our operations or sponsor equipment used to serve hygienic and nourishing meals to the beneficiaries.
• What are the benefits of donating to NGOs?
You can claim tax deductions on the donations made to an NGO provided the NGO is registered under Section 80G of the Income Tax Act, 1961. Not only that, helping those in need of your support also makes you happy and fulfilled.
• How is 80G donation calculated?
When you donate to Akshaya Patra, the benefit can be availed by reducing 50% of the donated amount from your taxable salary. For instance, if your taxable income per year is ₹200,000 and you make a donation of ₹5,000, then your net taxable income will become ₹197,500 (i.e. ₹200,000 – 50% of your donation). Your tax will now be calculated on this reduced taxable income based on the prevailing tax rates.
• What is the limit for donation under 80G?
Cash donations upto ₹2,000 are applicable for 80G certificates. If you wish to contribute more than ₹2,000, it has to be in any mode other than cash to qualify for 80G deductions.
• Will I (Individual/Company) will get CSR certificate? If yes, when will it be issued?
We, at Akshaya Patra will provide an Individual/Company with an 80G Certificate and Utilisation certificate for the CSR donations made.
• Will I get the Utilisation Certificate at the time of making the donation or will I receive it at the end of the year?
All utilisation certificates will be provided to the donor at the end of the financial year.