13 September 2010
In the calculation of deduction allowed under section 80g [donation], Suppose the adjusted gross total income is Rs. 197000, DONATION GIVEN TO a.Government for family planning Rs. 27000 b.Approved charitable institution Rs. 3000; Then how to calculate the amount of deduction??
Here the amount of donation or 10% of adjusted gross total income Whichever is less to be considered. but here Total amount of donation Rs. 30000 and 10% of adjusted gross total income Rs. 19700 Then how to allocate as the donation to govt for family planning exp 100% of adjusted gross total income should be allowed as deduction.
13 September 2010
IN YOUR CASE TO TAL DONATION U/S 80G WILL BE 50% OF 30000/- BECAUSE 10% OF ADJUSTED GTI IS 19700/- WHICH IS GRETER THAN 15000/- SO RS. 15000/- WILL BE THE NET DEDUCTION U/S 80G.
13 September 2010
But sir For donation to govt for family planning expenditure 100% of adjusted gross total income & approved charitable trust 50% of adjusted gross total income
should be allowed as deduction. How to allocate for the two With Rs 15000 sir?
13 September 2010
you can claim deprecaiton upto maximum limit 10% of Adjusted GTI. Which is 19700. I.e you will get total deductin u/s 80 G is 19700/-
13 September 2010
10% OF ADJUSTED GROSS TOTAL INCOME = 19700/- 100% DONATION ALLOWED FOR FAMILY PLANNING = 27000/- 50% DONATIN ALLOWED FOR APPROVED INSTITUAION = 1500/- TOTAL DONATION ELIGIBLE FOR DONATION = 28500/- BUT IT ALLOWED SUBJECT TO LIMIT RS. 19700/- YOU CAN ALLOCATE IT IN BOTH OR AGAINST ONE I.E IF YOU ALLOCATED AGAISNT BOTH
If aggregate of the sums donated exceed 10% of the adjusted gross total income, the amount in excess of 10% ceases to be entitled for tax benefit.
CAclubindia
