- Assessee having PGBP income get deduction for
(a) Donation to approved scientific research institutions (Section35)
(b) Donation to approved social science / statistical institutions (Section 35)
(c) Donation to approve institutions for rural development / national urban poverty eradication fund
(Section 35CCA)
(d) Donation to approved person for carrying eligible projects or schemes (35AC)
- Those assessee who do not have PGBP income can’t claim such deductions thereat, however they can claim under this section 80GGB regarding these four
Note :-
- If deduction allowed under this section, then not to be allowed again under any other section.
- This deduction is available to assessees not having PGBP Income
- If approval granted to the institution is withdrawn later, even then deduction will be available.
- If amount of donation exceeds 10000,it should not be paid by cash
Example 1
Suppose a person has Income from Salaries of 300000
He donates Rs 100000 for Approved Social Science Instituituions
Compute GTI,Deduction and NTI
View answer
Income from Salaries 300000
Gross Total Income 300000
Less
Deductions
Section 80GGA 100000
Net Total Income 200000
-ea-
Example 2
Solve last question assuming person does business and has Net Profit of 300000
He donates Rs 100000 for Approved Social Science Institutions which is included in expenses while calculating PGBP Income
Compute GTI,Deduction and NTI
View answer
Net Profit 300000
Add
Expense Disallowed
Donation to Approved Social Science Institutions 100000
Total 400000
Les
Expense Allowed
125% Deduction 125000
PGBP Income 275000
Gross Total Income 275000
Less
Deductions
Section 80GGA 0
Net Total Income 275000