Deduction u/s- chapter vi

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Partnership firm for the financial year 2010-11, donation paid to an  institution Rs.1,20,000, debited to Profit & Loss account, again it is disallowed under income tax. and such donation is eligible for deduction under chapter.vi,  u/s 80g(5)(vi). i.e ,  Rs.60,000.

As computed u/s-143(1) of income tax, the dept doesn't taken into consideration the deduction of Rs.60,000 under chapter vi, for which partnership firm have to pay demand.

Please any one can say why it dept doesn't taken into consideration the deduction of Rs.60,000.

Replies (3)

Only donation made to made to prescribed funds and institutions qualify for deduction U/s 80G of Income Tax Act 1961. All donations are not eligible for tax benefits. Tax benefits can be claimed only on specific donations i.e. those made to prescribed funds and institutions.

Check whether the partnership firm made donation to the prescribed institution.

The deduction U/sec 80G for some donations made is eligible subject to the qualifying limit calculated by deducting the amount of deduction under Chapter VIA (other than 80G) from Gross Total income. Please check the same also.

Thank u sir .

 


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