|
Business
No ceiling on contributions to Sec. 35AC or 80GG
A few institutions like
hospitals are offering 100
per cent tax deduction for
projects covered by Section
35AC or 80GG. Are those
deductions subject to the
overriding ceiling of 10 per
cent of total income as for
donations?
Donations, which qualify
for deduction under Section
80G, has an upper limit of 10
per cent of the gross total
income as reduced by all deductions
other than the donations
themselves as
provided under sub-section
(3). There is no such limit for
contributions made for eligible
profits for schemes of institutions,
which have been
notified by National Committee
under Sec. 35AC. It is
allowed in full, if paid out of
business income under Sec.
35AC and in other cases under
Sec. 80GG. Where the
contribution made out of
business income exceeds the
gross total income, the excess
will be treated as business
loss permitted to be
carried forward and set off
against future income.
However, where it is paid
out of income from "salary",
"property" or "Other sources",
it can be claimed only
under Sec. 80GG for which
there is no limit of 10 per
cent as for Sec. 80G, but
there is a ceiling by way of
available gross total income
of the year applicable under
Sec. 80A for deductions under
Chapter VI-A. Deduction
under Sec. 80GG
cannot, therefore, exceed
the available income.
S. RAJARATNAM
Printer friendly
page
Send this article to Friends by
E-Mail
Business
|
