Dear Sir/ Madam, Please provide me the information regarding 80G and how is it calculated in Form-16.
From India , Bangalore
Its the deduction under section 80G where we have to consider all the donation made by the person or company.
First you have to remember certain things.....I made it for personal purpose so its short in form, Plz consider it

The followings are 50% deduction:-
i) Child
ii) Drought
iii) Neheru/Gandhi

Other than above 3 are 100% deduction

But few are there which is 150% deduction, those are:-
i) Charity ------50%
ii) Housing ----50%
iii) Institute ---50%
iv) Temple ----50%
v) Family Planning ---- 100%

the above mention 50% are 50% under 150% and only Family Planning is fully 100% deduction under 150%

now calculation of 50% and 100% is easy but 150% is quite different so the process is

let say total amount of donation is 42500 and within this family planning is Rs. 7000 and category 50% is included now the calculation is:-


now this 35500 included 50% category i.e. 35500*50%=17750

now this 50% will be deducted from total income and we have to add back Rs. 7000
i.e. 17750+7000=24750 this amount will be considered.

now the deducted amount will be:-

whichever is less ------------- 10% of Adjusted GTI(gross total income)
or total donation of 150% ( means here Rs. 24750)

the process of calculating "adjusted GTI" = GTI - deduction under 80c to 80u(except 80G) + casual income - (LTCG + STCG)

LTCG -- long term capital gain
STCG -- short term capital gain

I hope it will help you, if any problem regarding the steps please feel free to reply me.

From India , Bangalore
Hi Joy,
Thnx am now clear abt 80G.
But i have a clarification.
If suppose an employees GTI is 1100000 and he has not donations as such excluding his savings.. Still the employer has to consider % from his GTI for donations.

From India , Bangalore
Hi Shilpa, If his donated amount is not related to such mentioned fund then that amount will be fully taxable amount.
From India , Bangalore
Normally employer does not considered 80G deduction while calculation TDS on salary. As per salary circular if donation paid by employer on behalf of employee then employer can consider 80G deduction.
This is what actual practice.
CA. Tushar Zagade

From India, Bhavnagar
Also shilpa, it is not practically possible to employer to calculate exact GTI of employee. In such cases calculation of 80G deduction possible. Tushar Zagade
From India, Bhavnagar
Also employer can consider income under head of salary, other sources and loss under house dont considered 80G while calculating Salary TDS. CA. Tushar Zagade
From India, Bhavnagar
Dear Tushar Zagade,
Kindly note that provision of deduction of under section 80G is withdrawn from the At Source. Only in case of Prime Minister's Fund & Chief Minister's Fund the deductin at source is allowed. In other donations the Assessee has to claim the same in his return and claim in return. He has to pay Advance Tax of entire amount without considering the Donations.

From India, Pune
5.5.10 Deductions on respect of donations to certain funds, charitable institutions, etc. (Section 80G):

Section 80G provides for deductions on account of donation made to various funds , charitable organizations etc. In cases where employees make donations to the Prime Minister's National Relief Fund, the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf- Circular No. 2/2005, dated 12-1-2005.

No deduction under this section is allowable in case of amount of donation if exceeds Rs. 10000/- unless the amount is paid by any mode other than cash.

From India, Bhavnagar
Yes Ramakant, you are right, employer can consider some deduction U/s. 80G but there are some conditions which are mentioned above.
From India, Bhavnagar
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