Pacer (C) (86 Points)
05 September 2012Dear Experts,
Can you please advise on the treatment of the donation amount to a trust/temple?
How much amount needs to be deducted from the taxable income? Is it 100%? Under which section?
When the donations are given, what are necessary documents or proofs one should collect so as to use them while filing the tax returns?
Pleae help.
Thank you.
Regards,
Anand
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 06 September 2012
Before giving Donations to temples/trust you shud first ensure that the said temple trust is covered by the provisions of section 80G of the I-T Act. When you donate the said institution gives you a receipt for the donation made whihc is proof that you ave hte donation. On the receipt itself it is written that donations made to the trust temple are exempt u/s 80G of the Income-Tax Act.
the donations made are either deductible 100% or 50% as teh case may be from the taxable icnome. However the total donations shud not exceed 10% of the Adjusted income after considering the deductions undet other sections apart from 80G. Suppose if your Gross income is 500000 & the deductions u/s 80C are 100000, then your qualifying amount for donations would be 10% of 400000 whihc is Rs 40000. So if the applicable deduction rate is 50% then the maximum deduction that can be availed u/s 80g would be Rs 20k.
Pacer
(C)
(86 Points)
Replied 14 September 2012
Thank you Giridhar for this information.
Do I need to collect some document from the temple/trust which says that - the donations to the temple/trust are exempted under section 80 G?
Also, how will I come to know whether the deductible amount is 50% or 100%?
Thank you.
Regards,
Anand
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 14 September 2012
Yes you will need to collect the receipt from the trust after making the donation and preserve the same with you sot hat if your case comes up for scrutiny you may produce the receipt before the AO. On the receipt it is written that the donations made to the trust are exempt u/s80G of the I-T Act.
Except a few such as PmRY, CMRF etc. Almost all other are exempt to teh extent of 50%. But you may enquire with the trust about the eligibility.
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