Tax Exemption - Frequently Asked Questions

• What is 100% Tax exemption?

Every donation made to CRY is eligible to a 100% tax exemption under section 35AC or 80GGA. To avail of the same you must specify at the time of making a donation that you wish to claim a 100% exemption.

The exemption works by reducing the donated amount from your taxable salary. Hence if your taxable income in a year is Rs.2,00,000 and you make a donation of Rs.5,000. Then your net taxable income will become Rs.1,95,000. Your tax will now be calculated on this new amount basis the prevailing tax rates.

• Do all employers allow the 100% tax exemption to be considered in Form 16?

Yes. All organisations permit or consider 100% tax exemption in Form 16.

• Are there any limits on the amount to be donated to get a 100% tax exemption?

While there is no maximum or minimum limit for 100% tax exemption, CRY recommends that you donate over Rs. 250 to claim exemption as this would cover the cost of data processing, printing and mailing of the 58A exemption form and receipt and still leave a surplus that we can deploy towards our projects.

• Money you give to CRY is tax-deductible.

Under section 80G of the Income Tax Act, you can get a 50% deduction on the donation. And under sections 80GGA or 35AC, you can get a deduction for the entire amount donated. These deductions are available for sums up to 10% of your taxable income (that is, your gross total income, minus deductions, minus capital gains, minus income exempt from tax, minus section 10 deductions).*

• What can be done if I want to see the Charity Commissioners certificate?

You can call or write to the CRY office nearest to you for a copy of the same.

* Please consult your Tax Advisor / Chartered Accountant to calculate exactly how much tax you can save.