NARESH Kumar RATERIA (B.Com) (49 Points)
08 September 2015An income tax assessee having income from Salaries and Other Sources (consist of Interst from Bank Deposit, Pention etc.) have made a donation to an institution which has issued certificate under section 35AC of Income Tax. Whether the donation is 100% allowable to the tax computation to be set off against income from Salaries / Other Sources.
S. Shiroor
(Others)
(1207 Points)
Replied 08 September 2015
The Central Government approves certain NGOs and notifies them as eligible for project or schemes for the purposes of section 35AC.
For eg 1) Girl child Education
2) Helping cancer Patient to reduce their pains etc.
But under 35AC only Corporates and Biz Org can take 100% benefits uner 80G.
Salaried person - donate to PM national relief Fund. Receipt is send by mail and Physical receipt by speed post after 2 weeks.
CA Salman Ansari
(Salman Ansari & Assoc.)
(247 Points)
Replied 08 September 2015
Hello Naresh,
Section 35AC is applicable only for assessees having income under the head Business or Profession. For the rest of the assessees, the same is allowable u/s 80GGA.
As per section 80GGA, 100% of the sum paid to a public sector company, local authority or an approved association or institution which carries out project or scheme approved under section 35AC is considered eligible for deduction.
Such donations can be made in cheque or by draft or in cash; however cash donations in excess of Rs 10,000 are not allowed as a deduction.
Hope this helped.
CAclubindia
