Donation u/s 80g calculation

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Arvind Kumar (Querist)
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24 August 2011 Salary - 190,000
Income from House Property - 40,000
Short term CG (Shares u/s 111A) - 15,000
Income from Other sources - 80,000

Chap VIA - 80C - 50,000
- 80G - 45,000 (50% item)

Please tell me what is the eligible amount of 80G deduction in the above case?

CA Ankit Verma

CA Ankit Verma (Expert)
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24 August 2011 Ans is Rs. 13000/-

First find Adjusted Gross Total Income [AGTI]

AGTI = Rs. 260000/-

CALCULATION of AGTI:-
Total Income(except 111A + LTCG )
Less: Chp VIA Deductn except 80G

i.e.
190000+40000+80000 = Rs. 310000/-
Less: 80C deduction = Rs. 50000/-

Now eligible amount limit for 80G is
10% of AGTI = 260000 x 10%
= Rs. 26000/-

But 80G item is allowed only for 50% deduction of eligible amount, therefor 80G deduction shall be Rs. 13000/-.

i.e. 26000 x 50% = Rs. 13000/-

Message likes : 1 times

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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14 March 2016 How to Calculate 80G Deduction:-

Step 1:-
First Calculate Adjusted GTI - Total Income-Chapter VIA Deduction Except 80G - Capital Gains
In You Case it will be 2,60,000/-

Step 2:-
Now Calculate Qualifying Amount:- It will be Lesser of 10% of Adjusted GTI i.e 26,000/- or Amount Donated i.e 90,000/-, so Answer is 26,000/-

Step 3:-
Take 50% of Qualifying Amount that is 13000/- of 26000/-.

Hence Answer is 13000/-

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