Deduction under 80C

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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)

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

Message likes : 1 times

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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