80G deduction calculation error in ITR 2 (AY 2023-24) by the efiling system

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Request Experts to give their opinion on the reply given by the I-T Dept. to my Grievance on the above topic. I have given below the I-T Dept.'s clarification (at the end of the webpage mentioned below).

In brief, the issue is: whether the maximum deduction allowed on 80G donations (subject to limits) is 10% of the AGTI or 5% of the AGTI as is now calculated by the System. The response to my Grievance implies that the maximum deduction allowed will be 5%. What is the correct interpretation of the law?

Thank you.

https://www.caclubindia.com/forum/section-80g-deduction-error-in-itr-2-online-ay-2023-24-599859.asp

 

 

Replies (1)

If you have only single category donation qualifying 50% of donated amount subject to 10% of Adjusted Gross Total Income; in such case it gets reduced to (10%AGTI * 50%) i.e, net 5% amount.

In case donation is given to different institutes qualifying 100 or 50% without any qualifying limit, then the calculation cannot be direct as above.

So, in your case net donation to the specific institute will finally will be capped at 5% of total amount donated.

In that sense, the calculation by system is correct.

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