Exemption of Donation u/s. 80G provides by Income Tax Law to Taxpayee who will donate in amount by Cash or in Other Transactions in respect to donate Funds to Charitable Trust or Institutions etc. subject to conditions. The fund donates to Charitable Trust or Institution by Taxpayee. The charitable Trust or Institution are approved u/s. 80G(5)(vi) of Income Tax Act, 1961. It may further be noted that, the full amount is not eligible for deduction from Income while submission of Annual Return to Income Tax Department by Taxpayee. The deduction admissible is @ 100% or 50% of the donation amount depending upon the fund/ institutions to whom the donation is done. The total deduction u/s 80G is restricted to a maximum of 10% of the adjusted gross total income. If the receipt of Donation reveals the fact of approval of the said trust U/s 80G(5)(vi), then you can claim deduction. Recently, by the Finance Act-2012, Section 80G has been amended so as to provide that payment exceeding Rs. 10,000/- will be allowed as deduction u/s 80G only if such is paid by any mode other than cash. You may note that the limit of Rs. 10,000/- is not applicable on aggregate basis but is applicable on individual basis. If one makes a donation of an amount equal to or less than Rs. 10,000/- to one or more than one trust then the deduction would not be denied. But, if the cash donation in an amount exceeding Rs. 10,000/- at a stroke is made to any particular trust then the deduction would not be admissibleMonday, 3 December 2012
In Cash Transaction Donation is not eligible exceeding Rs. 10000/- u/s. 80G
Exemption of Donation u/s. 80G provides by Income Tax Law to Taxpayee who will donate in amount by Cash or in Other Transactions in respect to donate Funds to Charitable Trust or Institutions etc. subject to conditions. The fund donates to Charitable Trust or Institution by Taxpayee. The charitable Trust or Institution are approved u/s. 80G(5)(vi) of Income Tax Act, 1961. It may further be noted that, the full amount is not eligible for deduction from Income while submission of Annual Return to Income Tax Department by Taxpayee. The deduction admissible is @ 100% or 50% of the donation amount depending upon the fund/ institutions to whom the donation is done. The total deduction u/s 80G is restricted to a maximum of 10% of the adjusted gross total income. If the receipt of Donation reveals the fact of approval of the said trust U/s 80G(5)(vi), then you can claim deduction. Recently, by the Finance Act-2012, Section 80G has been amended so as to provide that payment exceeding Rs. 10,000/- will be allowed as deduction u/s 80G only if such is paid by any mode other than cash. You may note that the limit of Rs. 10,000/- is not applicable on aggregate basis but is applicable on individual basis. If one makes a donation of an amount equal to or less than Rs. 10,000/- to one or more than one trust then the deduction would not be denied. But, if the cash donation in an amount exceeding Rs. 10,000/- at a stroke is made to any particular trust then the deduction would not be admissible
Subscribe to:
Post Comments (Atom)
GAAR Not Applicable to Genuine Capital Market Transactions: Telangana High Court
In a significant ruling, the Telangana High Court held that General Anti-Avoidance Rules (GAAR) cannot be invoked merely because a transacti...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
-
Facts Centrica India Offshore Private Limited (CIO), an Indian Company, is a wholly owned subsidiary of Centrica Plc, UK Centrica Plc a...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
The Tax Audit season has started and it’s the time when the Assessees rush to their Chartered Accountants (CA) to get their Tax Audit d...
-
SREI Infrastructure Finance Ltd vs. ITSC (Delhi High Court) The assessee entered into a scheme of arrangement u/s 391-394 of the Compani...
-
Facts The taxpayer, a partnership firm, derived income from the business of handling and transport of ship containers, customs clearing a...
-
M/s. Alpha Projects Society P. Ltd vs. DCIT (ITAT Ahmedabad) In AY 2005-06, the assessee made payments to contractors & for professi...
-
01. TDS u/s 194J is required to be done for Royalty also w.e.f 13-7-2006. 02. Royalty had been defined under explanation 2 of se...
-
F.No.354/66/2011-TRU Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs...
-
M/s. Merilyn Shipping & Transports vs. ACIT (ITAT Visakhapatnam Special Bench) The assessee incurred brokerage expenses of Rs.38....
No comments:
Post a Comment