Charitable Donations (Section 61) - Tax Credit

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This blog is in continuation to the series "Curtailing the Tax Liability (Part II) - Tax Credits".


Disclaimer: This blog will be updated over the period of time with practical examples, sample letters and relevant case laws and due to the volatility of tax statutes it is subject to unprecedented changes as and when required.

Tax Credit on Charitable Donations (Section 61)


A person shall be entitled to tax credit against any sum paid or property given as donation to any of the following: 

- Any board of education/educational institution or university established under Federal or Provincial Law; 

- A hospital or relief fund established or run by Federal, Provincial or Local government; 

- Any non-profit organization 


Tax Credit = (A/B) X C 


A = Tax assessed before any tax credit 

B = Taxable Income for the year 

C = Lesser of following: 

- Total amount of donation only if through crossed cheque or fair market value of property at the time it is given 

- 30% of taxable income for individuals and AOP’s 

- 20% of taxable income for company


NOTE: In addition to above please click here to read Miscellaneous Provision of Tax Credit (Section 65);





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