Guide to .. Tax Management ,Tax Planning and Tax Saving
 

Deduction For Donations To Certain Funds And Charitable Institutions

[ Deductions Allowed to NRIs in the Computation of Total Income and Tax Payable]

Under the provisions of Section 80G. a non-resident Indian, like any other taxpayer, is entitled to a deduction of the qualifying amount of donation in computing his total income. The important Funds which qualify for such deduction are Jawaharlal Nehru Memorial Fund or the Prime Minister’s Relief Fund or the Prime Minister’s National Relief Fund or the Indira Gandhi Memorial Trust, etc or any other Fund or any institution exempt under Section 80G. Contribution to the Prime Minister’s National Relief Fund, the P.M. Armenia Earthquake Relief Fund, the Africa (Public Contributions — India), a University or any approved educational institution of national eminence, the Zila Saksharta Samiti, the National Blood Transfusion Council, etc., N.F. for Communal Harmony, National Illness Assistance Fund, C.M./L.G. Relief Fund, National Sports Fund (from A.Y. 1999-2000) contribution to the Government, certain approved institutions, etc., for family planning and the Fund for Technology Development and application set up by the Central Government (from the A.Y. 2000-2001), donations for Kargil jawans (from the A.Y. 2000-2001) and the National Trust for Welfare of persons with Autism, Cerebral Palsy Mental Retardation and Multiple Disabilities (from the A.Y. 2002- 2003) is entitled to deduction @ 100% of the donation. In all other cases the rate of deduction is 50% of the donation. As regards the maximum eligible deduction there is no limit regarding donation to the National Defence Fund or Jawaharlal Nehru Memorial Fund or the Prime Minister’s National Relief Fund or the Prime Minister’s Drought Relief Fund or the Prime Minister’s Armenia Earthquake Relief Fund or the Africa (Public Contributions-India) Fund or the National Children’s Fund or the Indira Gandhi Memorial frust or the Rajiv Gandhi Foundation or the National Foundation for Communal Harmony or National Illness Assistance Fund or a University or an approved educational institution or any Zila Saksharta Samiti or the National Blood Transfusion Council or any State Blood Transfusion Council or any fund set up by a State Govt. to provide medical relief to the poor or to Army, Naval or Air Force Welfare Funds. In respect of all other donations like donation to a charitable institution exempt under Section 80G, the maximum amount of donation eligible for deduction is 10% of the gross total income (as reduced by any other sum on which income tax is not payable under the Income Tax Act and any sum in respect of which the assessee is entitled to deduction under Chapter VI-A of the I.T. Act, as discussed in this Session), whichever is less. No deduction is allowed on donation in kind.

 
Deductions Allowed to NRIs in the Computation of Total Income and Tax Payable
1.Tax Benefit Regarding Life Insurance Premium, PPF Contributions, Nscs, Tuition Fees, etc.
2. Deduction For Donations To Certain Funds And Charitable Institutions
3. Deduction In Respect Of Profits And Gains From A New Industrial Undertaking Or Infrastructural Facility
4. Five-Year Tax Holiday To Hospitals At Certain Locations Sec. 80-1B (IIC)
5. Tax Holiday To Enterprises Providing Telecommunication Services, Industrial Parks, New Hotels And Having Commercial Production Of Mineral Oil
6. Five Year Tax Holiday For New Industrial Undertakings In Industrially Backward Areas & Districts
7. Liberalisation Of Tax Holiday Provision For Infrastructure, Telecom Services, Power Generation, Special Economic Zones, Industrial Parks, etc. [ Section 80-IA]
8. Ten Year Tax Holiday In Respect Of Certain Undertakings In Himachal Pradesh, Sikkim, Uttaranchal And N.E. States Section 80-IC
9. Five-Year Tax Holiday For Hotels In Districts Having A World Heritage Site Sec. 801D
10. Tax Holiday For Hotel And Convention Centres In NCT Of Delhi And Other Areas Section 801D
11. Deduction’ In Respect Of Medical Insurance Premia Section 80D
12. Additional Deduction For Health Insurance Premium Paid For Parents Section 80D
13. Deduction Of Repayment Of Loan For Higher Studies Section 80E
14. Deduction In Respect Of Certain Undertakings In North Eastern States
15. Other Deductions Like Depreciation, Etc. To Nonresident Indians
 
 
 
 
Get.. Tally.ERP9 Book + GST Practical Assignment @ Rs.550 Tally.ERP9 Book Online Order Tally.ERP9 Book Content
 
© 2018 : IncomeTaxManagement.Com