t.d.s. on salary sec.192

This query is : Resolved

CA Abhishek Singh (Querist)
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11 May 2009 dear all

for deduction of tax on payment of salary by the employer, should donation u/s. 80g to be allowed as deduction???

in tn manoharans book it is given that employer should deduct tax after allowing dedn u/c vi-a.
however my classes sir(teaches from v.k. singhania) has said that all other deeduction except 80g will be allowed for tds.

i am confused. i am studying from tn manoharan.

Gayathri Devi

Gayathri Devi (Expert)
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11 May 2009 Dear Abishek
dont get confused the section says that Sec 80 G deduction can cliam by the person is as follows
Actual amount donated (or)
10% of the adjusted Gros total Income whichever is less
Adjusted Gross Total Income = Gross total Income - all deduction under chapter VI A except section 80G
Ex.GTI = 250000 all other chapter VI A deductions is Rs.25000/- the Adjusted gross total Income is Rs.225000/-
Ex : donation Rs.25000/-
10% of the adj GTI Rs.22500/-(225000*10%)
Hence the deduction u/s 80 G is Rs.22500
The Total Taxable Income is Rs.202500/-

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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11 May 2009 Dear Abhishek. Your Sir said absolutely correct. There is a CBDT circular which clearly says that the employer while calculating the TDS on salary of the employee shall not take into consideration the donations made for charitable purposes, EXCEPT IN CERTAIN CASES WHERE DONATION HAS BEEN MADE TO GOVT CHARITY PROGRAMMES. If you want I will send you the detailed circular. Send me your email ID at tarun2507@gmail.com.

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taxindiaconnect

taxindiaconnect (Expert)
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11 May 2009 Tharun if absolutely right. 80G deduction can be taken in to consideration by the employers when a notification is issued by the CBDT for a particular donation. For example donation made for Gujrat Earthquake, Tsunami Relief . kargil fund were all notified by way of a notification of CBDT then only employers were allowed to take in to account for deduction of TDS on Salary.