Sec 80g help required

This query is : Resolved

Preeti Gupta (Querist)
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14 July 2014 I have a Net Total Income of Rs 530000 (for fy 2014-15 and not ay 2014-15) in one of my client's portfolio.So from Rs 500000 onwards the 20% Tax rate kicks off.He wants to pay a donation of Rs 50000, which infact will result in Tax Benefit of Rs 5000 (50% of Rs 50000 i.e. Rs 25000 and 20% of Rs 25000). Now after reading Sec 80 G it also states that for computing qualifying limit we should also deduct exempt income from the Net Total Income. My Client has a PPF Exempt Interest of Rs 14000 (approx).So will this Rs 14000 be deducted from the Rs 530000 as mentioned above.If it is so then Qualifying Limit for Donation looks like Rs 530000 - Rs 14000 = Rs 516000 and 10% of that is Rs 51600. Am I correct ?? An urgent reply is needed from your side.With Regards, Preeti Gupta.