@ Ankit :

Please provide additional details wrt donation made to Institution as in check the donation receipt for name or 80G subsection.(only for the purpose of whether it qualifies for restricted 50% or restricted 100% or non restricted 100% or non restricted 50%). Because in every case, donation allowed will be different.

Secondly check whether the payment mode is other than cash mode since the donation is beyond permissible cash limit. And if it is in cash then no donation allowable u/s 80G

Thirdly are there any deductions other than donations u/s 80G??

Now presuming payment mode to be by a cheque and there are no other deductions other than donation u/s 80G

And considering in all 4 cases of non restricted and restricted, 100% and 50%, donation allowed will be

Case 1: Non Restricted 100% - Rs. 51000/-

Case 2: Non Restricted 50% - Rs 25500/-

Case 3: Restricted 100%  - Rs 27702/-

Case 4: Restricted 50% - Rs 13851/-

Hope I am able to solve your problem.

Rinkal,

Last option Restricted 50% Shall be Rs 25500 and not Rs 13851.

 10% of GTI comes to Rs  27702. So deduction is capped  to Rs Rs 27702. Then this donation is restricted to 50% of the donation amount which comes to Rs 25500. So lower of Rs 27702 and Rs 25500 is aloowable deduction

50% limit is not applicable to 10% of GTI but to the donation amount

@ CA PARTH SHAH: I agree that 50% limit is not applicable to 10%gti. 10% gti is to check the maximum permissible deduction. It coincidentally happened to be 50% of 10% gti in the given case.

As per IT Act, all the restricted 100% and restricted 50% should be aggregated first and compared to 10% gti and whichever is lower will be the maximum permissible amt.

Then from the maximum permissible deduction, first restricted 100% is adjusted and thereafter 50% deduction of the balance is allowed

Hence in case 4, I arrived at an amount of Rs 13851/-

You are first making 50% allocation and then comparing which is not that is quoted in the Act

@ ANKIT GUPTA: Please if you could share the details as to how you got the ans

Ok. Thanx for clearing my misconception 

@ Parth Shah: U r welcomed. 

Link of other sites with example. https://www.lawyersclubindia.com/mobile/articles/details.asp?mod_id=2119

@ RASHI BAJAJ:

Disagree. Please refer to the bare act. It clearly states that from the max. permissible deduction, 100% deduction should be adjusted first and thereafter 50% deduction of the balance would be allowed.

The restricted donation is to be calculated in 2 steps

Step 1:  Calculation of permissible deduction

Wherein donations of restricted 100% and restricted 50% would be summed up first without bifurcation of 100% and 50% and compared to 10% of adjusted gti. Lower amongst the 2 will be the permissible deduction

Step 2: Donation allowed:

After arriving at max permissible deduction, donation allowed to be considered by adjusting restricted 100% first. i.e. check restricted 100% donation amt with permissible donation. If it is higher or = to, consider the permissible donation and if less, then consider the 100% restricted donation amt and from the balance permissible donation, 50% deduction to be considered

That will be the total donation allowed wrt restricted category of donation

Thanks for the reference Rinkal. Your point is making sense in clause 4 of the section. It defines "the aggregate of the sums" on which 100% or 50% is to be applied. Agreed with your calculation.

Wow, what a world

@ Dhawal: 

What do you mean by this statement? Please clarify.

I still could not get it. I read the entire post again. What were you pointing out at? Is it that you said the same thing which I said it later explaining it in a different way or that Ankit Gupta already got his ans.

Please clarify.

@ Rinkal

Donation has been made to TAFE FOUNDATION, CHENNAI (PROVIDES WORLD CLASS FACILITY FOR EYE CARE) through a crossed cheque amounting Rs 51000/-

Also, there is no Donation other than 80G.

Actually, i was applying 50% of Donation and 10% of adjusted GTI, whichever is lower.

and thats why i got Rs 25500 as my answer, which is wrong.

Give your opinion whether Rs 13851 is allowable or not?