Deduction under 80C

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2011 Dear Sir/Madam,

If an employee joins the company (say on 01/08/2010)and he gives his investment supporting made between 01/04/2010 and 31/07/2010, Shall I as an employer accept his supporting for giving deduction u/s80C, or shall I deny for it.

If I accept it will there be any liability of Company.

Same is the case if he leaves the company say on 31/12/2010, shall I give full 160000/- as minimum dedcution or shall I give minimum deduction proportionately only upto Dec-10

Please guide
Thanks in advance

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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01 February 2011 If supporting paper pertains to financial year in which he joins the company, Company hs to give deduction for that u/s 80C of the Act.

Even if an employee leaves the Company before close of the financial year and if he submits supporting paper, wmployee is entitled for maximum deduction allowable u/s 80c of the IT Act.

Maximum deduction on u/s C is 1 lacs and additional 20000/- for Infrastructure bond

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Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2011 But sir What about the first 1 lac sixty thousand rupess, above which the tax rates are applicable.

In the case if he leaves the company say on 31/12/2010, shall I give full 160000/- as minimum non taxable income or shall I give minimum non taxable income proportionately only upto Dec-10

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