80g deduction.. help?

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Hello, please compute from the following information, deduction u/s 80G allowable in case of firms..i am facing difficulties. Net profit before partners interest and salary=1534936.69 Donation to approved institution- 51000 Net profit after interest and salary= 277022.69 there is no LTCG,STCG.
Replies (31)

What the issue here. 

Deduction u/s 80G is allowed upto 10% of GTI which comes to Rs Rs 27,702. Deduction eligible is Rs 50% of Rs 51000 which comes to 25,500. SO claim deductiom of Rs 25500 

50% of 10% of GTI (Assuming it falls under 50% category). It should be 13,851. In my view.

Well Act has capped limit on 10% on adjusted GTI. 50% is the limit is on the deduction of donation and not on GTI.

Maximum permissible donation is 10% of AGTI, and that is not allowed in full, you have to deduct based on qualifying limit.

Presuming you fall under the general(restricted 50%) category, your deduction amount would be restricted to 50% of 51000/-, i.e. 25500 which is within the limit of 10% of ATI. i.e.27,702/-

So claim 25500/- u/s 80G

Disagree

Maximum permissible donation is 10% of ATI or actual donation (Whichever is less). Thereafter 50% is applied on whichever is less.

 

 

Dhawal could you plz quote the exact clause?

80G(4)

Assume 10% ATI is 100 and donation is 100. We would claim 50 as 80G. Since donation amount does not exceed 10% of ATI.

Now assume 10% of ATI 90 and donation is 100, are you saying that you would claim 90 as deduction???? Eveen if it falls under qualifying limit of 50%?

10% of ATI is the calculation for maximum permissible donation not the qualifying deduction amount.

If still not convinced, put the above example in ITR.

Disagree. 

50% is applicable to donation amount. First the amount of deduction is decided. so 50% of the donation is taken into consideration. THen it is compared with 10% of  GTI. Whichever is lower is allowed as deduction.

in Case of 10% ATI is Rs 90, deduction would be limited to 50% of donation ie Rs 50. 

 

Disgaree.

Check by filling an ITR. It does not calculate that way.

You are applying 50% to the 10% of GTI. But the act says 50% limit is applied 

Sir check with ITR, we would conclude instantly, else it is going to go on all day.

Thanx a lot all.. for your replies..

But agree with CA PARTH SHAH N CA RASHI BAJAJ its Rs 25500.


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