Exemption for donation paid

We have made payments towards donation to Cancer Aid & Research Centre from partnership firm in maharashtra Also received the 80G certificate from Cancer Aid. Want to know the limit & % of exemption from I.T. i.e. if we have made paid donation rs. 5000/- then how much is exempted from I.T. If full donation is not exempted, then what entries to be passed for bal. of donation paid ? shud it be expensed off or trf. to partners capital ?

Thanx in advance

Replies (5)

Yes, Exemption is 100%.

Thanx. Can u tell me it comes in which clause cause my CA has considered 50% exemption for F.Y. 2007-08 .. Or are the rules changed for F.Y. 07-08 and 08-09

 

The list is too long but the rough idea is that you get 100% for flood relief, desaster etc and 50% for Gandhi fund , Nehru fund etc

you can't charge of to P/L account as this is not an business exp.. You do one thing, show this as expense only, then add back this as expenses not deductable from income. If you transfer it to partner's capital, it will be drawings for that partner and your firm will not be able to claim deduction U/s 80G.

CA has taken exemption for 2500/- i.e. 50% of total donation as deduction u/s 80G So exactly what entry shud i pass for balance 2500/- CA has told me transfer full donation amt to partners capital a/c. can someone suggest a correct entry.

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