deduction availaible u/s 80 G [Resolved]

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 Adjusted GTI: 40,000/-

Donation to approved local authority other than family planning: 20,000/-

how much deduction u/s 80G can be allowed?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2010 Maximum allowable deduction:- If aggregate of the sums donated exceed 10% of the adjusted gross total income, the amount in excess of 10% ceases to be entitled for tax benefit.

So in your case allowable amount is Rs.4000/-.

mohinder kansal

mohinder kansal (Expert)
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07 August 2010 Dear Anonymous,
in ur case qualifying amount u/s 80G is 10% of GTI i.e., Rs. 4000/- and deduction shall be allowed 50% of qualifying amount - means Rs. 2000/-

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2010 thanks to kansal sir...
but in this case what is the answer if 40,000 is 10% of adjusted GTI???

mohinder kansal

mohinder kansal (Expert)
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08 August 2010 in this case deduction u/s 80G shall be upto 50% of Rs. 40000/- , i.e., Rs. 20000/- shall be allowed as deduction

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 August 2010 Donation paid is Rs.20000/-.Allowable deduction is 50 % thereof means Rs.10,000/ only and not Rs. 20,000/- as said by Kansal Ji.

mohinder kansal

mohinder kansal (Expert)
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08 August 2010 yes. I had made mistake.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 But I think this 50% limit is not of the paid but of 10% of adjusted GTI.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 August 2010 1) 10 % of adjusted GTI (as clarified by you in 2nd query) is Rs.40,000/-
2) Donation paid (as per your 1st query) is Rs. 20,000/-
3) Maximum permissible donation is Rs.20,000/- being the least of 1) and 2) above.
4) Amount of deduction under section 80G is 50% of 3) above which comes to Rs.10,000/-
Now do you see any error in my first observation.

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