Income tax

POSTED BY sonadhi ON April 23, 2013 4:36 pm COMMENTS (6)

Hi,Following is the scenario.


Deductions-80C-1LAC,Home Loan Repayment-1.5Lac,80D-15000.

Total Income Tax to be paid this year2013-14—approx.25000/-

Is there any other way to save the  Tax other than 80CCg-Rajiv Gandhi Scheme





6 replies on this article “Income tax”

  1. Dear Sonadhi, let’s discuss your question with another view. Your AIM is to reduce tax outgo at any cost. Now after 2.65L Rs. available deductions (already mentioned by you), the taxable salary comes out around 4.35L Rs. so it indicates that you fall in 10% Tax slab. Now if you donate 25K to a charity, you are eligible for 12500 Rs. (50% in most cases) income deduction. Which means you ‘ll be able to save tax of 1250 Rs. + edu. cess on this 1250 Rs.

    Now do tell me, is it really worthy to think only tax saving. i’m not commenting here for your charity purpose. I’m merely discussing the fnancial part of the query.



  2. Dear Sir,

    For claiming 80G deductions you need to keep in mind that Only donations in cash/cheque are eligible for the tax deduction.

    Also you need to maintain certain documentation for claiming deduction u/s 80G

    Documentation Required for Claiming deduction U/s. 80G

    1. Stamped receipt: For claiming deduction under Section 80G, a receipt issued by the recipient trust is a must. The receipt must contain the name , address & PAN of the Trust, the name of the donor, the amount donated (please ensure that the amount written in words and figures tally). In case of donation which are eligible for 100% deduction recipient should also insist on form 58 from trust. Form 58 contains the details of project cost (for which the donation is received), amount authorised under this project and the actual amount collected. Without form 58, the claim for 100% deduction could be rejected even if the receipt mentions 100% deduction.

    2. Mention of Registration No. of the Trust Under 80G on receipt:- The most important requirement is the Registration number issued by the Income Tax Department under Section 80G. This number must be printed on the receipt. Generally, the Income Tax Department issues the registration for a limited period (of 2 years) only. Thereafter, the registration has to be renewed. The receipt must not only mention the Registration number but also the validity period of the registration.

    3. Validity of Registration U/s. 80G on the date of Donation:- The donor must ensure that the registration is valid on the date on which the donation is given. For example, the registration of a trust may be valid from April 1, 2007 to March 31, 2009. Now, if the trust does not get its registration renewed on or after April 1, 2009 then even if donation receipt is issued by the trust to the donor for donations received on or after April 1, 2009, the donor would not get any tax benefit.

    4. Photocopy of the 80G certificate :- Check the validity period of the 80G certificate. Always insist on a photocopy of the 80G certificate in addition to the receipt.

    Hope this resolves your query.


    Team FinHealth

  3. sonadhi says:

    I agree. 🙂 🙂
    If suppose I donate Rs.25K to some NGO for children through Cheque,how can I show it in my IT Returns.Jus to show the copy of Cheque or else there is any procedure for mentioning this donation to reputed NGO.

    1. There is a separate sheet called 80G which you need to fill out. For most NGO the deduction allowed is only 50% of what you donate.

      You need to find out the from the NGO their PAN no It has to be entered in the return file.

      Ps. if an employer offers NPS instead of EPF and offers a matching contribution than this will get deducted separately from 80C.

  4. Under 80D mediclaim for parents if applicable (15K, 20K if senior citizens)
    I assume it is not since you seem to have thought of everything.
    This leaves:
    Under 80G –> charity 🙂
    The other categories are special ones involving illness/disability

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