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Form 16

Amit Bhatkar (Service) (457 Points)

11 August 2008

Should company consider the donation receipt produced by the employee while calculating the TDS ?

Amit

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5 Replies

N GANESHAN. (CA FINAL STUDENT - PRACTITIONER) (921 Points)
Replied 11 August 2008

Originally posted by :Amit
"	Should company consider the donation receipt produced by the employee while calculating the TDS ? Amit	"

NOT NECESSARY ... IN CASE THE RECEIPIENT TRUST IS NOT RENEWED FOR THE YEAR OF DONATION ADDITIONAL TAX LEAVY IS POSSIBLE.. HENCE NO EMPLOYER IS TAKING THAT RISK.... HENCE THE THE DRAWING OFFICER MAY CONSIDER THE DONATION RECEIPTS...

Sujit Talukder (service) (719 Points)
Replied 12 August 2008

Employer should consider the followings only for the purpose of TDS on salary:

1. Salary to be paid by the employer to employee.

2. Deduction u/s 80C/ 80D/E

3. Other income reported by the employee. If the employee reports negative income then employer cannot consider the same. Only positive in came has to be considered for the TDS purpose. Employee can claim the same on his individual return.

Only exception is the Interest on Housing Loan which is a loss income and employer can consider the same.

Thus donation is not alloowed to be considered.

The emplouyee can consider the same in his own individual return.

Please note that due to this there could be refund to the employee but employer has no choice left and has to deduct TDS and employee has to claim refund later.

CA Hemantkumar,M.COM,ACA,DISA,cVa. (Chartered Accountant) (98 Points)
Replied 12 August 2008

No, Comapny certify only the income generated by employee from company and investment made by the employee under section 80C /80D/E and also certify the housing loan interest.

Sujit Talukder (service) (719 Points)
Replied 12 August 2008

Can the employer consider donation u/s 80GGA by the employee?

(Guest)

Originally posted by :Amit
"	Should company consider the donation receipt produced by the employee while calculating the TDS ? Amit	"

Company will consider only those donation which 100% of qualifying amount is allowed as a dedcution i.e donations in purely governent related entities , and not the other one where the 50% of qualifying amount is allowed as deduction e.g other than government i.e school , trust, sanstha etc which coming under 80G