Deduction u/s 35 AC

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Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2010 If an individual make donation u/s 35 AC, but if he doesnt have any income from business or profession then whether that exps is allowed or not??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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18 October 2010 then claim deduction u/s 80GGA.

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2010 Thanks a lot Sir for immediate reply...

But the individual has made the payment to the institute, which is doing the public welfare work....so it wont be eligible for caliming deduction u/s 80GGA.

The individual has income of capital Gain, income from other sorces and the income of remuneration and the interestfrom the partnership firm in which he is a partner??So, whether from the interest and remuneration income, can we claim deduction u/s 35 AC.

Please reply immediately as its a urgent...

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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18 October 2010 Deduction in respect of certain donations for scientific research or rural development.

80GGA. (1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2).

(2) The sums referred to in sub-section (1) shall be the following, namely :—

[(bb) any sum paid by the assessee in the previous year to a public sector company or a local authority or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme :

Provided that the assessee furnishes the certificate referred to in clause (a) of sub-section (2) of section 35AC from such public sector company or local authority or, as the case may be, association or institution.

1[Explanation 1.— The deduction, to which the assessee is entitled in respect of any sum paid to a public sector company, or to a local authority or to an association or institution for carrying out the eligible project or scheme referred to in section 35AC, shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee,—

(a) the approval granted to such association or institution has been withdrawn; or

(b) the notification notifying the eligible project or scheme referred to in section 35AC carried out by the public sector company, or local authority or association or institution has been withdrawn.]

Explanation 2[2].—For the purposes of this clause, the expressions “National Committee” and “eligible project or scheme” shall have the meanings respectively assigned to them in the Explanation to section 35AC;]

So deduction u/s 80GGA can be claimed by him.

However subsection (3) states Notwithstanding anything contained in sub-section (1), no deduction under this section shall be allowed in the case of an assessee whose gross total income includes income which is chargeable under the head “Profits and gains of business or profession”.

Since u have income from business from firm u can claim deduction u/s 35AC also against business income itself.

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2010 ok...thanks a lot...that means the individual who has income of interest and remuneration from the partnership firm in which he is a partner can claim deduction u/s 35 AC even though he doesnt have his own business income....right??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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18 October 2010 Yes as it is business income.

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