Exemption under Section 80G

TDS 1108 views 1 replies

Dear Members

A private limited company is paying remuneration to its Directors. During the financial year 2009-10 one of the Director has given donation to the extent of Rs.90000/- to a charitable organisation. 50% of such donation is available for him as exemption / deduction. He has submitted the copy of payment receipt alongwith exemption certificate received by him from the charitable organisation.

Kindly clarify whether the company can consider the donation made by him and calculate his Tax Liabilities accordingly as well as the TDS to be deducted from him.

Whether the company can issue the TDS Certificate duly mentioning such exemption available under 80G.

with regards

Muralidharan

Replies (1)

Dear Muralidharan,

If U r talking about Executive/WholeTimeDirector who is getting salary then as per Boards Circular following donations can be considered for TDS deduction u/s 192 i:e Salary

Circular : No. 9/2008, dated 29-9-2008.

 

Name

Amount allowable

 

 

National Defence Fund

100%

 

 

Jawaharlal Nehru Memorial Fund

50%

 

 

Prime Minister’s Drought Relief Fund

50%

 

 

National Children’s Fund

50%

 

 

Indira Gandhi Memorial Trust

50%

 

 

Rajiv Gandhi Foundation

50%

 

 

Prime Minister’s National Relief Fund

100%

 

 

Prime Minister’s Armenia Earthquake

 

 

 

Relief Fund

100%

 

 

Africa (Public Contributions-India) Fund

100%

See section 80G

 

National Foundation for Communal Harmony

100%

 

 

Chief Minister’s Earthquake Relief Fund, Maharashtra

100%

 

 

National Blood Transfusion Council

100%

 

 

State Blood Transfusion Council

100%

 

 

Army Central Welfare Fund

100%

 

 

Indian Naval Benevolent Fund

100%

 

 

Air Force Central Welfare Fund

100%

 

 

APCM Cyclone Relief Fund, 1996

 100%

 

 

National Illness Assistance Fund

100%

 

 

Chief Minister's Relief Fund

100%

 

 

University/Educational Institutions approved by prescribed authority

100%

 

 

National Sports Fund

100%

 

 

National Cultural Fund

100%

 

 

However If u r talking about a Non executive Director who is getting professional fee rather then salary then donation u/s 80G cannot be considered for TDS purposes


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