Donations FAQ
- What is Income Tax Exemption in India? How Does It Work?
Income tax exemption refers to the deductions permitted by law that reduce your taxable income, thereby lowering your overall tax liability. You may receive full tax relief or reduced tax rates on specific portions of your income, depending on the provisions of the Income Tax Act. These exemptions are intended to promote certain economic activities and support socially beneficial initiatives.
- How Can I Save Tax by Donating to an NGO?
Under Section 80G of the Income Tax Act, 1961, both the donor and the registered NGO can benefit from tax deductions. To claim this deduction, you need to provide the receipt of your donation to the NGO.
- What is Section 80G of the Income Tax Act?
Section 80G allows taxpayers to deduct a portion of their donations to eligible charitable organizations from their taxable income. For instance, The Jio India Foundation Foundation is an NGO approved under this section, making donations to it eligible for tax deductions.
- What Tax Exemption Benefit Do I Get?
Donations exceeding ₹500 to Jio India Foundation qualify for a 50% deduction from your taxable income under Section 80G. By contributing to Jio India Foundation, you help feed school children and also reduce your tax liability.
- What is the Minimum Donation Amount Required for Tax Exemption?
To cover administrative costs, Jio India Foundation requires a minimum donation of ₹500 to qualify for a tax exemption under Section 80G.
- What is the Maximum Amount for Income Tax Exemption under 80G?
The maximum deduction depends on the type of donation. Some donations have no upper limit, while others allow deductions up to 10% of your adjusted gross total income.
- Do You Issue Tax Receipts? How Long Does it Take to Receive Them?
Yes, tax receipts are issued within 3 working days after the donation. The tax exemption certificate is emailed within 5 days of the donation.
- Is There a Tax Exemption on Cash Donations?
Cash donations above ₹2,000 do not qualify for tax deductions under Section 80G.
- When Can I Get a Tax Exemption Certificate?
Jio India Foundation issues tax certificates within 5 days of an online donation. Under the latest Income Tax rules, the details of donations will be uploaded to the Income Tax website, and a certificate will be generated periodically and emailed to donors.
- What if I Misplace the Tax Receipt?
While duplicate receipts are not available, you can request a copy of the Income Tax exemption certificate along with a soft copy of the original receipt for the relevant financial year by contacting donorcare@akshayapatra.org.
- I am an NRI. Am I Eligible for a Tax Exemption on My Donation?
NRIs who are Indian citizens with an Indian passport are eligible for tax exemptions under Section 80G, provided they provide their Indian PAN Card Number when making the donation.
- If I am a U.S. Resident, Am I Eligible for a Tax Exemption?
U.S. residents can receive tax exemptions by donating to The Jio India Foundation Foundation (USA), which is a registered 501(c)(3) organization under U.S. law.
- If I am a U.K. Resident, Am I Eligible for a Tax Exemption?
U.K. residents can receive tax exemptions by donating to The Jio India Foundation Foundation (UK), which is a registered charity under U.K. law.
- What Certificates are Required to Claim Tax Exemption under Section 80G?
To claim deductions under Section 80G, you need:
– The receipt of your donation
– A photocopy of the 80G Certificate
– The registration number of the charitable trust
- Can I Claim Tax Exemption under Section 80G through My Employer?
Yes, you can claim the deduction through your employer by providing a certificate from your employer stating that the donation was made from your salary.
- Does Jio India Foundation Accept In-Kind Donations?
Jio India Foundation does not accept in-kind donations, but you can volunteer or sponsor equipment used to provide hygienic and nutritious meals to beneficiaries.
- What Are the Benefits of Donating to NGOs?
Donations to registered NGOs under Section 80G are eligible for tax deductions. Additionally, supporting those in need can bring a sense of fulfillment and happiness.
- How is the 80G Donation Calculated?
For donations to Jio India Foundation, 50% of the donation amount is deducted from your taxable income. For example, if your taxable income is ₹200,000 and you donate ₹5,000, your taxable income will be reduced to ₹197,500.
- What is the Limit for Donation under 80G?
Cash donations up to ₹2,000 are eligible for 80G certificates. Donations exceeding ₹2,000 must be made via non-cash methods to qualify for tax deductions.
- Will I Receive a CSR Certificate for My Donation?
Jio India Foundation provides both an 80G Certificate and a Utilization Certificate for CSR donations.
- When Will I Receive the Utilization Certificate?
Utilization certificates are provided to donors at the end of the financial year.