Deduction u/s 80G

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Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2010 Please Help me. My Query is that whether the employer is liable to consider the deduction of Donation to a approved charitable institution, by an employee on producing the photocopy of receipt and copy of ITO Certificate for 80G, while computing TDS on Salary.

Or Employer will compute the amount of TDS without considering the Donation Receipt and employee will claim refund in his Income Tax Return.

Vishnu Saboo

Vishnu Saboo (Expert)
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30 March 2010 Both procedures can be adopted.
but it would be better for employee that employer consider the same while preparing tax calculation.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 March 2010 EMPLOYER SHOULD CONSIDER THE DONATION U/S 80G AS IT WOULD REDUCE THE AMOUNT OF TDS TO BE DEDUCTED FROM EMPLOYEE.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 March 2010 There is a restriction,as far as the employer is concerned, for considering deduction under section 80G while deducting income tax from salary vide CBDT Circular 01/2010 dated 11/01/2010 which is reproduced below.
The tax relief on such donations as admissible under section 80G of the Act, will have to be claimed by the taxpayer 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 vide Circular No. 2/2005, dated 12-1-2005.

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