80G & 80DD

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This query is : Resolved

Puran Dangwal (Querist)

16 April 2011 Dear Sir
Could anyone please confirm me the below, while computing TDS on Salary
-u/s 80G- Benefit cannot be given if donation is not made through employer and employer provide a certifcate to this effect.

u/s 80DD, No rebate while calculating TDS. Only at the time of filing return, the benefit can be taken.

Regards
Puran Dangwal

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

16 April 2011 As per annual TDS circular issued by CBDT the position is as under
1. Section 80G provides for deductions on account of donation made to various funds , charitable organizations etc. Generally no deduction should be allowed by the D.D.O. from the salary income in respect of any donations made for charitable purposes. The tax relief on such donations as admissible under section 80G of the Act, will have to be claimed by the tax payer in the return of income. However in cases where employees make donations to the Prime Ministers National Relief Fund, the Chief Ministers Relief Fund or the Lieutenant Governors Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf - Circular No. 2/2005. dated 12-1-2005.
Also refer to circular no 8/2010 dt 13-12-2010
2.In respect of ded U/s 80DD there is no ban but it is clarified that The Drawing and Disbursing Officers should satisfy themselves about the actual deposits/ subscriptions / payments made by the employees, by calling for such particulars/ information as they deem necessary before allowing the aforesaid deductions. In case the DDO is not satisfied about the genuineness of the employees claim regarding any deposit/ subscription/payment made by the employee, he should not allow the same, and the employee would be free to claim the deduction/ rebate on such amount by filing his return of income and furnishing the necessary proof etc., therewith, to the satisfaction of the Assessing Officer.

Refer to circular no 8/2010 dt 13-12-2010

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Puran Dangwal

Puran Dangwal (Querist)

17 April 2011 Dear Sir
What I understand is
-Deduction u/s 80G can be given to employee if
-donations are made through employer &
-To the following organisation only
a) Prime Minister Relief Fund
b) Cheif Minister Relief Fund
c) Lt. Governor Releif Fund

and under section 80DD the benefit can be given while calculating salary on TDS a fixed amount of Rs. 100000(max)

Regards
Puran

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