Donation u/s 80g for a pvt. ltd. company

Kallol Sarkar (Accountant) (188 Points)

03 September 2019  

A Pvt. Ltd. company has paid donation to charitable trust of Rs. 1,00,000 for which 50% deduction viz 50,000 is allowed by the IT act. Now company's

Net Profit as per P&L a/c. - 6,00,000

What will be its taxable income? My Answer is

Net Profit-                   6,00,000

Add : Donation paid-   1,00,000

                                7,00,000

Less : Donation
allowed u/s 80G      (-) 50,000
Taxable Income       6,50,000
 
is that correct? Please confirm