sanju (Accountant) (348 Points)
09 September 2011FRIENDS,
can any body please explain me how to arrive gross eligible deduction, net eligibnle deduction, amount deductuble under sec.80G ( deduction in respect of donations to charitable institutions), with a simple illustration. thnks in advance friends...
Nuthan Kumar.P
(CWA (Inter))
(172 Points)
Replied 09 September 2011
Amount Donated to Charitable Trust/Society - 50% Exemption for Individuals.
(If Organization having 80GCertificate).
Nuthan
Shah Tarun
(Student)
(800 Points)
Replied 09 September 2011
Deduction amount U/s. 80G:- Donations paid to specified institutions qualify for tax deduction under section 80G but is subject to certain ceiling limits. Based on limits, we can broadly divide all eligible donations under section 80G into four categories:
a) 100% deduction without any qualifying limit (e.g., Prime Minister’s National Relief Fund).
b) 50% deduction without any qualifying limit (e.g., Indira Gandhi Memorial Trust).
c) 100% deduction subject to qualifying limit (e.g., an approved institution for promoting family planning).
d) 50% deduction subject to qualifying limit (e.g., an approved institution for charitable purpose other than promoting family planning).
For list of Institution donation to whom is eligible to 100% deduction without any qualifying limit, eligible to 50% deduction without any qualifying limit, 100% & Subject to qualifying limit and of those eligible for 50% deduction subject to qualifying limit please check the link given below:-
https://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20Act/80g.asp
Qualifying Limit:- The qualifying limits u/s 80G is 10% of the adjusted gross total income. The limit is to be applied to the adjusted gross total income. The ‘adjusted gross total income’ for this purpose is the gross total income (i.e. the sub total of income under various heads) reduced by the following:
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 09 September 2011
Well Explain above......
CAclubindia
