Donation to corpus fund of a trust

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Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2017 How much deduction can be availed by donating to Corpus Fund of a Trust?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 January 2017 You can get a deduction of 50% u/s 80g.

Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2017 Just for more clarity, giving one example:
If Mr A has a taxable income of Rs 500,000 and he donated Rs 20,000 to corpus fund of a trust.
Then, eligible amount will be 50% of (10% of 500,000) = 25000.
Hence, full Rs 20000 can be claimed for Deduction.

Right Sir?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 January 2017 Not right. The ceiling for donation is 10% of 5 lacs. Deduction allowable is 10,000 i.e. 50% of actual donation made.

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