35 ac or 80 gga

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Querist : Anonymous

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Querist : Anonymous (Querist)
28 December 2012 Hi,

Being an employee, If I have donated some amount to a NGO so under which section I should claim that 35 AC or 80 GGA?

Regards,
Deepika

28 December 2012 Deepika,
As an employee provisions of Section 35AC cannot be used by you since it is a deduction from business income.
You can use the provsion of Section 80GGA
Purpose of donation should be scientific research or rural development


28 December 2012 35 AC is for the person who is having business income for others it is sec 80gga

28 December 2012 Being an employee you can only use 80 GGA and not 35 AC as your income is not from Business or Profession.

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Querist : Anonymous

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Querist : Anonymous (Querist)
28 December 2012 Thanks Anand, MAnish and Priyank.

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Querist : Anonymous

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28 December 2012 And how much % of exemption is allowed and what is the maximum limit of 80 GGA?

28 December 2012 % is 100% and there is no limit.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 January 2013 Being a HR, can I allow employees to declare under 80 GGA or they have to claim it while filing IT return?

02 January 2013 I think the employees should claim it when filing their respective returns.

03 January 2013 As per CBDT circular no. 8/2012 [F.NO. 275/192/2012-IT(B)], DATED 5-10-2012
Employers should satisfy themselves that all the conditions mentioned in Section 80GGA are satisfied before such deduction is allowed by them to the employee. They should also satisfy themselves in this regard by insisting on production of evidence of actual payment of donation and a receipt from the person to whom donation has been made and ensure that the approval/notification has been issued by the right authority. Employer must ensure a self-declaration from the employee that he has no income from "Profits and gains of business or profession".
Once all this is done you can give deduction while computing the salary tds


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Querist : Anonymous

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Querist : Anonymous (Querist)
03 January 2013 Thanks @Priyank and @Anand.


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