Deduction under 80G

Karan Thacker (CA) (117 Points)
Replied 24 June 2010

1)3000

2)Rs.17220

Ridhi (Student) (103 Points)
Replied 25 June 2010

i agree with karan.

Deduction under 80G : 3000

Tax payable:16720

Edu. Cess: 500

Total tax payable:17220

Shudhanshu Agrawal (Business) (2570 Points)
Replied 25 June 2010

Originally posted by : Ridhi
	i agree with karan. Deduction under 80G : 3000 Tax payable:16720 Edu. Cess: 500 Total tax payable:17220

According to me 50% with qualifying liimit should be allowed as deduction u/s 80G as deduction for charitable institution registered u/s 80G is 50% with qualifying limit.

Hence deduction shall be 1500 instead of 3000.

Correct me if i am wrong.

Varun (Proressional) (47 Points)
Replied 25 June 2010

I also have doubt about exact amount that is exempted under section 80G. I also read it somewhere that only 50% of 80G donations are tax-free. Can you guys please confirm?

CA. Rohit Vishambhari, Vns. (Chartered Accountant) (150 Points)
Replied 25 June 2010

Dear,

Total approx. income tax liability will come to Rs. 19,000/- to 19,500/- including the liability for the interest u/s 234B & C for the non compliance of the provisions of the advance tax.

The above calculations have been made assuming no TDS or advance tax payments have been made during the previous year ending 31.03.2010. Also the interest liability shall be variable to the date of payment of the self assessment tax u/s 140A.

Ok, Have a nice day...........

Varun (Proressional) (47 Points)
Replied 25 June 2010

Rohit,

Tax has been deducted from my salary on time and my company has paid it regularly every quarter. So this is not an issue.

The doubt that I have is only about 80G deductions. I hope this will put you in a better position to answer my question.

Rahul Gupta (Project Controller ACA MBA(Fin.)) (8014 Points)
Replied 25 June 2010

Varun,

Agreed with Sudhanshu and you, that for charitable institutions generally, deduction is 50% u/s 80G. However, since you had a receipt, sometimes it is mentioned on the receipt about the exemption amount, Check it on. Else, sometime in the prospectus document also, it is mentioned for the eligible % of dedcution. Check them out, may be you got ur answer.

Also, i checked their website ( https://www.greenpeace.org/india/campaigns ). Just in case, it is the same one, then i am afraid that the donation to them is eligible for 80G. Because, i think it has not been mentioned ther eon the website about 80Gm may be after registering or on donations they provide this. So just check it.

Else, i am in doubt, may be also try on Income Tax Site or with Income Tax PRO for confirming that this organization is registered or not.

Rahul Gupta (Project Controller ACA MBA(Fin.)) (8014 Points)
Replied 25 June 2010

Originally posted by : Rahul Gupta
	Also, i checked their website ( https://www.greenpeace.org/india/campaigns ). Just in case, it is the same one, then i am afraid that the donation to them is eligible for 80G. Because, i think it has not been mentioned ther eon the website about 80Gm may be after registering or on donations they provide this. So just check it. Else, i am in doubt, may be also try on Income Tax Site or with Income Tax PRO for confirming that this organization is registered or not.

Varun, It mentioned there on the website for 80G donation.... https://www.greenpeace.org/india/supportus

Rahul Gupta (Project Controller ACA MBA(Fin.)) (8014 Points)
Replied 25 June 2010

Check this out ?

Mention of Registration No. of the Trust Under 80G on receipt:- The most important requirement is the Registration number issued by the Income Tax Department under Section 80G. This number must be printed on the receipt. Generally, the Income Tax Department issues the registration for a limited period (of 2 years) only. Thereafter, the registration has to be renewed. The receipt must not only mention the Registration number but also the validity period of the registration.

Source > https://www.sanghparivar.org/blog/rkm/all-about-deduction-under-section-80g-of-the-income-tax-act-1961-for-donation

Varun (Proressional) (47 Points)
Replied 25 June 2010

Greenpeace is a registered organization. Here is the image of the recept. Now tell me how much exemption is allowed in my case.

Rahul Gupta (Project Controller ACA MBA(Fin.)) (8014 Points)
Replied 25 June 2010

Dear Varun,

I spent almost more than hour on Income tax Site and other sites for finding the notification. Unfortunately i didn't find the notifications mentioned at the bottom of the receipt. However, if more interested , you can e-mail them to know the amount of deduction or can enquire at the Income Tax department for the notifictaion mentioned at the bottom of the receipt. I will keep on searching for the said notification and , in case, i find the same, i will let you know.......

However, since it is registered as a charitable society , then my view and suggestion is that deduction allowed will be 50%. So, theoratically it would be better to claim 50% as deduction.

Practically, you can also, if you want, claim 100% deduction, since it won't affect too much and the tax impact will be about Rs 300 only..and i suppose iT department is not concerned with such low amount.

My suggestion is to claim 50%.

Regards

Varun (Proressional) (47 Points)
Replied 25 June 2010

Thanks Rahul for your support.

I need further information in this matter.

My organiation does not accept proofs of donations made & income from other sources for computing of form 16 details. So the form 16 given to me by my company has:

Income chargeable under the head "Salaries"                 -    402176

Deductions under Chapter VI-A                                            -     103349

Taxable income                                                                       -     298830

Total Tax                                                                                    -       14299

Tax paid (TDS)                                                                         -        14299

=================================================================

Now my question are:

1) Can I show income from other sources (Rs 17760 ) & exemption under 80G (Rs 1500) on ITR-1 and pay the difference of Rs 3231 (Rs. 17530 - Rs. 14299) as tax while filing return?

2) Do I need to attach form16 and exemption certificate given by Greenpeace India with ITR-1 form?

2) Does the IT Department still accept IT return in person in India?

Please provide me this information.

Thanks,

Varun

Rahul Gupta (Project Controller ACA MBA(Fin.)) (8014 Points)
Replied 25 June 2010

Varun,

Anwers to your queries >

1. Your Company will not provide deduction u/s80G fro donations made by you. You have to calim it separately while filing IT Return. Concerning, your other sources, you have to mention that while informing your employer during the starting of the financial year.

However, No problem you show the income from other sources and claim dedcution u/s 80G, and pay the taxes computed on it as self assessment tax along with teh Interets u/s 234.

2. Regarding Attachment of Form 16 & Exemption Certificate, I am not sure since last 2 year I am not in India and my returns are filed by E&Y and my Form 16 directly goes to them. Also, as per my last knowledge, while filling ITR Forms you are not required to make any attachments. However, do keep the same with you, in case the ITO demands from you later on.

Please update on this issue, from other experts or material on this forum. as I also need to be updated on this point.......

3. Yes, IT Department, is accepting the IT return in person. E fillingis not madatory for salaried persons.