Calculation of Deduction U/s 80G

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2011 Hi,

My GTI (excluding capital Gains) is Rs. 6,55,564 and STGC is Rs. 1,572. Thus Total Income is Rs. 6,57,136. I gave a donation to a charitable trust for Rs. 1,25,000.I have invested 1,20,000 for deduction u/s 80C and 80CCF.
As per my Calulation, Deduction u/s 80G should be as below:-
Adjusted GTI = 10% of (657136-120000) = 53714
50% of Donation = 62500
so least of the above,i.e., i should be able to claim Rs. 53714.

When i am trying to fill ITR2 for efiling i get the following calculation
Adjusted GTI =10% of (655564-120000) = 53556
Amount eligible for claim u/s 80G = 50% of Adjusted GTI = 50% of 53556 = 26778

This amount is automatically coming in the return so please confirm which calculation is correct and how to file the return if my may is correct.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 July 2011 The problem is STCG.
STCG U/s 111A is subjected to 15%. It is to be excluded while calculating adjusted GTI.

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 But the STGC is a small amount and my question is whether the deduction u/s 80G is :-
1) Lower of
a) 50% of Donation and
b) 10% of Adjusted GTI
OR
2) 50% of (10% of Adjusted GTI)
because in my case if i consider option 1 as correct the deduction u/s 80G should be Rs53714 whereas if i consider option 2, the deduction u/s 80G should be Rs26778 so which is actually correct

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