Non - consideration of donations in form 16
This query is : Resolved
04 April 2012
Why is Donations paid during the year not considered in Form 16?
05 April 2012
a detailed guideline on tds on salary by CBDT prescribes for considering only certain donations like donation to Prime Minister's Relief Fund etc., and not to donations to charitable entities
05 April 2012
Please refer CBDT circular 05/2011 [F.NO.275/192/2011-IT (B)], 16.08.2011
the relevant extract is as below -
H. Section 80G provides for deductions on account of donation made to various funds , charitable organizations etc. Generally no deduction should be allowed by the D.D.O. from the salary income in respect of any donations made for charitable purposes. The tax relief on such donations as admissible under section 80G of the Act, will have to be claimed by the tax payer in the return of income. However in cases where employees make donations to the Prime Minister’s National Relief Fund, the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf - Circular No. 2/2005, dated 12-1-2005.
the relevant extract is as below -
H. Section 80G provides for deductions on account of donation made to various funds , charitable organizations etc. Generally no deduction should be allowed by the D.D.O. from the salary income in respect of any donations made for charitable purposes. The tax relief on such donations as admissible under section 80G of the Act, will have to be claimed by the tax payer in the return of income. However in cases where employees make donations to the Prime Minister’s National Relief Fund, the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf - Circular No. 2/2005, dated 12-1-2005.
07 April 2012
Form No. 16 is issued to salaried persons and the company issues this against the salary paid to the staff. The company never pays any donation to staff therefore it is not included in Form No. 16. If company gives any benefit to the staff the same is called perquisites which is taxable. For example let us treat that some money has been given to the staff as donation then it will be included in the perquisites and it is taxable.
The other experts have dealt with the provisions of exemption u/s 80G which I am not taking up you can go through their opinion.
The other experts have dealt with the provisions of exemption u/s 80G which I am not taking up you can go through their opinion.
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