Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

deduction u/s 35AC

Pawan Sharma (ACCOUNT MANAGER) (100 Points)

15 July 2010

Respected All,

My uncle is a pensioner (Senior Citizen). His pension is Rs. 625,000/-, investment u/s 80C is Rs. 1,00,000/-. He donate Rs. 8,000/- donation to "CanSupport" u/s 35AC. Please let me know how can i calculate his tax liabilty.

regards Pawan Sharma

Reply
Follow
Share

5 Replies

Nivedhitha Srinivasan (Articled Assistant) (28 Points)
Replied 15 July 2010

Dear sir,

I think deduction u/s 35AC is available for all assessees i.e. Payment made to a Pubic sector Company, Local Authority, Approved Association or institution for carrying out approved eligible projects.

Certificate in Form No. 58A from the entity in respect of contributions made should be furnished. And actual amount of payment is allowed as deduction

Upgrade to CAclubindia Pro. Subscribe Now!

Pawan Sharma (ACCOUNT MANAGER) (100 Points)
Replied 16 July 2010

Dear Nivedhitha,

Firstly thank for ur quick reply, next my main question is how I treat this donation. is it loss under the head "Business or Profession" and to be adjustable from pension, plz clear the same. is the computation as under:-

Under the head "Salary" Pension 6,25,000

Under the head "Business or Profession" NIL

Donation u/s 35AC 8,000 -8,000

------------------------

Total Income 6,17,000

Less:- U/s 80c 1,00,000

------------------------

Total Taxable Incme 5,17,000

is this ok

thanks & best regards

Pawan Sharma

-----------------------

Nivedhitha Srinivasan (Articled Assistant) (28 Points)
Replied 16 July 2010

Dear sir,

For a non-business income assessee's sec 35AC deductions are allowed as deduction from the gross total income u/s 80GGA and the computation will be as under

Income Under the head "Salary" (Pension) 6,25,000

------------------------

GrossTotal Income 6,25,000

Less:- U/s 80c 1,00,000

U/s 80GGA 8,000 1,08,000

------------------------

Total Income 5,17,000

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 17 July 2010

dear friend

if a person has non business income then the deduction allowed under head pgbp is allowable under section 80 for example scientific research donation etc.ur case is also covered under this section.so just deduct the amount from gross total income to calculate ur tax liability.

regards

tarun rustagi