Clarification on 80G Exemtpion

This query is : Resolved

Muralidharan (Querist)
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01 March 2010 Dear Members

A private limited company is paying remuneration to its Directors. During the financial year 2009-10 one of the Director has given donation to the extent of Rs.90000/- to a charitable organisation. 50% of such donation is available for him as exemption / deduction. He has submitted the copy of payment receipt alongwith exemption certificate received by him from the charitable organisation.

Kindly clarify whether the company can consider the donation made by him and calculate his Tax Liabilities accordingly as well as the TDS to be deducted from him.

Whether the company can issue the TDS Certificate duly mentioning such exemption available under 80G.

with regards

Muralidharan

Rasesh

Rasesh (Expert)
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01 March 2010 Yes, the company is actually required to take note of all such additional information provided by any employee, be it the director himself. The person may disclose any additional income (like income from other sources), donations, investments u/s 80C etc to the company.

The company can include all such details in the Forn 16 issued by it.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 March 2010 My view.As an employer cannot considered 80G Donation deduction except the donation towards P.M. or C.M relief funds. a employee can claim deduction in respect of 80G while filing the returns

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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02 March 2010 Not at all. The deduction U/s 80G is NOT to be considered for calculating TDS on salary, unless and until it is a donation to prescribed Govt approved institution or charity program. Generally, donation which qualify for 100% deductions are only to be considered for TDS purpose, but no consideration to be given to donation paid to 50% exemption charitable trusts.

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