As suggested by Dhirajlal Sir, I sent a grievance to efiling. They have replied that the system has correctly calculated the deduction to be made from income on account of 80G donation subject to qualifying limit. I request Dhirajlal sir and other experts to give their views. Thank you in advance.
Example posted on 4 June, 2023:
AGTI 6,00,000/-, Actual donation u/s 80G (50% subject to qualifying limit) 80,000/-,
10% of AGTI 60,000/-
CPC has mentioned that the calculation of deduction should be as under:
"Please consider the calculation for Donation u/s 80G @ 50% with qualifying limit. Qualifying limit is the 10% of Adjusted Gross Total income (Gross total income -VIA deductions except 80G-STCG u/s 111A). 50% is calculated on this 10% of Adjusted Gross total Income. In this case, the Qualifying limit will be 60,000 (10% of 6,00,000) and deduction u/s Sec 80G is 50% of 60,000 which is 30,000/-.Therefore the calculation done by the system (as 30,000/-) is correct." (Emphasis added by me.)
What the above explanation means is that the deduction calculated by the System (for comparison with 50% of the actual donation) would be 5% of the AGTI, since the 50% rule has also been applied by the System to the maximum limit of 10% of AGTI allowed. Is this the correct interpretation of the law?