Tax Exemption

[RR Ramanan]

Dear Mr.Saravanan

 

One small clarification on your side.I understand that we will be eligible for tax exemption up to 50% under section 80G from this year onwards. Please confirm.

Meantime I read that we can avail 100% tax exemption under 80GGA or 35 AC. Please correct me if I am wrong.

Also kindly let us know if there is a minimum or maximum slab as to exemption for donation

 

 

 

Thanks & Best Regards

 

 

RR Ramanan

+91 99444 97989

 

[CA Saravanan.S]

Dear Mr.Ramanan

 

80 G : The person who gives us donation will be eligible for 50% subject to qualifying limit of 10% of adjusted gross total income of the donor.

 

80 GGA : This is with regard to donations for approved scientific research association  or approved ruran development programmes and thugh the quantum of deduction is 100% this won't suits our case.

 

35 AC : This is regarding expenditure incurred by a assessee by way of payment to a public sector company / lical authority / an association or institution approved by the National Committee for carrying out any eligible project or scheme for promoting social and economic welfare of or upligt of the public as the central govt may specity.

 

Thus in my oipnion, 80 G suits us in the initial phase and even for that a person giving donation from his tax paid money is costly than his otherwise income. i.e.. for paying Rs. 100 as donation from his accounted money he has to pay initially Rs 43 on Rs 143 to get Rs 100 as tax paid money and later on paying Rs 100 as donation he again pays Rs 15 on balanc3 Rs 50 as only 50% is eligible. Thus to pay Rs 100 to us from his tax paid money he has to pay Rs 58 as net tax. Hope u understood better.

 

Regards

 

 

CA Saravanan S FCA
Chartered Accountant
ALTN and Co.,
"Sabari Towers", KRR Layout Main Street, Mangalam Road, Tirupur - 641604.
98422 20616 , 91 421 4325426

[silvers...@gmail.com]

Dear Mr. Saravanan

Affirmative. Thanks for the clear explanation.

Regds

RR Ramanan

Sent from BlackBerry® on Airtel

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From: "CA Saravanan.S" <ssar...@gmail.com>

Sender: imayam-fou...@googlegroups.com

Date: Mon, 20 Jun 2011 13:35:30 +0530

To: <imayam-fou...@googlegroups.com>

ReplyTo: imayam-fou...@googlegroups.com

Subject: Re: Tax Exemption