Deduction under sec 80g

This query is : Resolved

Sandeep Shrikhande (Querist)
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15 January 2014 one company wants to deduct amount from employees salary for donation to NGO as per each employee's wish.
How ever I have seen payment of wages act is silent about deduction of this type from wages of employee.
Whether employer can deduct the amount as directed by each employee and can issue one cheque to NGO ? whether each employee can claim 80G deduction in form no. 16? Pls. advise

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 January 2014 yes it is very much allowed...yes it would reflect in Form 16.

With regards to issuing one cheque to the NGO, this could lead to a problem as the NGO may issue the receipt in name of the company then. However, if the NGO issues receipt in individual's name, it should not be an issue.

Sandeep Shrikhande

Sandeep Shrikhande (Querist)
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15 January 2014 I would like to know the govt notification abt the deduction from wages. Company can do it but like to have some legal supporting for the same.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 January 2014 payment of wages has nothing to do with this...so unfortunately you wont find anything there.

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