I-tax -donation u/s 80 g

Charudutta R. Mhalgi (Querist) 08 June 2012 This query is : Resolved

Respected Sir,

My query is regarding qualifying amount of aggregate donation under Section 8o G.Whcih amounts to be deducted from Gross salary--Exemption u/s10,Deduction u/s16 and deduction under VI-A.
Whether all above exemption and deduction to be considered or which is to be considered out of three for qualifying amount.

Kindly advice for the same.

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C. P. CHUGH (Expert) 09 June 2012

Please refer to section 80G(4) of the Act, reproduced below :
"80G[(4) Where the aggregate of the sums referred to in sub-clauses (iv), (v), (vi) [, (via)] and (vii) of clause (a) and in [clauses (b) and (c)] of sub-section (2) exceeds ten per cent of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this Act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of this Chapter), then the amount in excess of ten per cent of the gross total income shall be ignored for the purpose of computing the aggregate of the sums in respect of which deduction is to be allowed under sub-section (1)]."

Under the above provision the amount of deduction u/s 80G is restricted to 10% of Gross Total Income as reduced by any portion of income on which no tax is payable under the Act and also as reduced by amount of any deduction available under any provision of the Act.

In Plain language the amount of deduction is restricted to 10% of your taxable income.