neerajraj20dec
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Paying Donation via Amex Credit card and claiming tax exemption rather than paying to Govt
- Thread starter neerajraj20dec
- Start date
I guess you mean donation through matching donation sometimes run on American express platform?
That is best value for buck of corporate employees to donate to their chosen charity as some companies matching donations as well.
For ₹1 donated, Amex donate ₹1, company donate ₹1 and for 30% tax bracket you save tax of ₹0.3
For every ₹1 donation your favourite charity gets ₹4.2857 & considering it good charity with expenses ratio (~7%) ₹4 will entirely spent on actual cause of charity.
That is best value for buck of corporate employees to donate to their chosen charity as some companies matching donations as well.
For ₹1 donated, Amex donate ₹1, company donate ₹1 and for 30% tax bracket you save tax of ₹0.3
For every ₹1 donation your favourite charity gets ₹4.2857 & considering it good charity with expenses ratio (~7%) ₹4 will entirely spent on actual cause of charity.
But you get 30% exemption (considering top tax bracket). So for example, if you pay 10k donation you can claim 3k as tax benefit. It's not 1:1 like you pay 3k donation you can claim 3k tax benefit.
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