Prof. R.K. Mittal has a GTI of Rs. 30, 00,000 including LTCG of Rs. 5 lakh during P.Y. 2021-22. He made the following donations:

Join WhatsApp Channel Join Facebook Page/Group

 Section 80G of the Income Tax Act, 1961 provides for deduction in respect of donations to certain funds, charitable institutions, and approved trusts. The deduction allowed under this section varies based on the type of donation and the recipient organization.

The donations made by Prof. R.K. Mittal can be categorized as follows:

i) Donation to National Defence Fund: Donation to the National Defence Fund qualifies for 100% deduction under section 80G. Therefore, the entire amount of Rs. 1,00,000 donated to the National Defence Fund will be eligible for deduction.

ii) Donation to PMNRF: Donation to the Prime Minister's National Relief Fund (PMNRF) is eligible for 100% deduction under section 80G. Therefore, the entire amount of Rs. 70,000 donated to PMNRF will be eligible for deduction.

iii) Donation for repair of a Temple: Donation made for the repair of a notified temple is eligible for 100% deduction under section 80G. Therefore, the entire amount of Rs. 1,60,000 donated for the repair of a notified temple will be eligible for deduction.

iv) Donation to a Political Party: Donation made to a political party is not eligible for deduction under section 80G.

v) Donation of books to poor children: Donation of books to poor children is not eligible for deduction under section 80G.

vi) Donation to a Public Charitable Institution: Donation made to a public charitable institution is eligible for deduction under section 80G based on the percentage of the donation that qualifies for deduction. The percentage of the donation that qualifies for deduction varies based on the type of organization and the provisions of the Income Tax Act. For the purpose of this calculation, we assume that the entire amount of Rs. 1,00,000 donated to the public charitable institution qualifies for 50% deduction under section 80G. Therefore, the eligible deduction amount for this donation will be Rs. 50,000.

vii) Donation for promotion of family planning programme: Donation made for the promotion of family planning programme of the UP Government is eligible for 100% deduction under section 80G. Therefore, the entire amount of Rs. 1,00,000 donated for the promotion of family planning programme will be eligible for deduction.

Based on the above calculations, the total amount of deduction under section 80G for Prof. R.K. Mittal will be:

Rs. 1,00,000 (National Defence Fund) + Rs. 70,000 (PMNRF) + Rs. 1,60,000 (temple repair) + Rs. 50,000 (public charitable institution) + Rs. 1,00,000 (family planning programme) = Rs. 4,80,000

Therefore, Prof. R.K. Mittal will be eligible for a deduction of Rs. 4,80,000 under section 80G for the donations made during P.Y. 2021-22. This deduction can be claimed while filing the income tax return for the relevant assessment year.

Subcribe on Youtube - IGNOU SERVICE

For PDF copy of Solved Assignment

WhatsApp Us - 9113311883(Paid)