deduction u/s 35AC

Dear sir,

I think deduction u/s 35AC is available for all assessees i.e. Payment made to a Pubic sector Company, Local Authority, Approved Association or institution for carrying out approved eligible projects.

Certificate in Form No. 58A  from the entity in respect of contributions made should be furnished. And actual amount of payment is allowed as deduction

Dear Nivedhitha,

Firstly thank for ur quick reply, next my main question is how I treat this donation. is it loss under the head "Business or Profession" and to be adjustable from pension, plz clear the same. is the computation as under:-

Under the head "Salary"            Pension                                       6,25,000

 Under the head "Business or Profession"     NIL    

Donation u/s 35AC                                              8,000                        -8,000

                                                                                                        ------------------------

                                                Total Income                                       6,17,000

Less:- U/s 80c                                                                                     1,00,000

                                                                                                       ------------------------

Total Taxable Incme                                                                         5,17,000

is this ok

thanks & best regards

Pawan Sharma

                                  -----------------------

Dear sir,

For a non-business income assessee's sec 35AC deductions are allowed as deduction from the gross total income u/s 80GGA and the computation will be as under

Income Under the head "Salary"  (Pension)                                6,25,000

                                                                                                        ------------------------

                                             GrossTotal Income                                6,25,000

Less:- U/s 80c                                                    1,00,000

            U/s 80GGA                                                     8,000                 1,08,000

                                                                                                        ------------------------

                                               Total  Income                                          5,17,000

dear friend

if a person has non business income then the deduction allowed under head pgbp is allowable under section 80 for example scientific research donation etc.ur case is also covered under this section.so just deduct the amount from gross total income to calculate ur tax liability.

regards

tarun rustagi

Many many thanks to Ms. Nivedhitha and Mr. Tarun for ur quick reply